It is being reported that Saudi Arabia's oil reserves may have been overestimated by as much as...
40%. This would mean that the consequences of Peak Oil are going to hit home (a lot) sooner rather than later. What impact is this going to have upon the prospect for growth in World economy - bearing in mind that Capitalism, and the Free Market, is entirely predicated upon growing populations, markets, production and consumption?
Well it's always the same, oil is rarer than we thought, prices explode. Oh no wait there's still more, we have found some in Alaska, prices relax. Oh darn not much oil here. Prices rise again
That's good old supply and demand economy (it's the same with diamonds, millions of them are stored underground in DeBeers facilities just to create the illusion that this pressed carbon/graphite is precious and expensive but you can find tons of 'em in every diamond mine
)
Peak Oil was over as early as the 1970's. Saudi already pumping oil out by injecting water - and this is a desert!
From: http://home.entouch.net/dmd/ghawar.htm
" At Ghawar, the engineer said, the 'water cut' was 30%."
"The hairs on the back of my neck stood up. Ghawar's water injections were hardly news, but a 30% water cut, if true, was startling. Most new oilfields produce almost pure oil or oil mixed with natural gas--with little water. Over time, however, as the oil is drawn out, operators must replace it with water to keep te oil flowing --until eventually what flows is almost pure water and the field is no longer worth operating."
"Ghawar will not run dry overnight, but the beginning of the end of its oil is in sight." Paul Roberts, "New Tyrants for Old as the Oil Starts to Run Out, " Sunday Times (News Review), May 16, 2004, p. 8
I think this is one of those "planted" information stunts designed to drive the market spot price of oil up. Ultimately, the true availability of crude oil is a function of the production numbers...not the reserves. If the Saudis were diminishing production, then we would need to be ready for some problems. I am sure the Saudis will welcome the "rumor" as it will indeed create some concern in the markets and possibly some pricing spikes. In fact, I would not be surprised to find out that they are the ones who started the rumor in the first place. The Saudis are capable of producing just over 12 billion barrels of crude per day...they are only operating at 9 billion at the present so there is capacity to be used even within current production. In terms of reserves, most of that is an educated guess based on electronic soundings etc. from downhole logging. There is always room for some error there. WB
Sure; why else would the Saudis be pushing the US so hard to invade Iraq and Iran? You didn't think WE were going to get that oil did you?
King Abdullah is an a**hole who is going to lose his kingdom if he doesn't find oil reserves somewhere.
the problem with this is that it seems that every once in a while we hear stories like this and then the next thing we know , the price of fuel goes up. this seems like just that, an excuse to raise the cost of fuel. why they don't just tell us "too bad suckers were going to raise the prices because we can " is beyond me.
by Sharlee 2 years ago
Has news reporting become nothing more than salacious entertainment? Has society become sponges that believe much of what they hear nightly from talk jock that have a bit of a flare for the dramatic? ( I am using the Fox/Dominion story as an example, to help make my point in regard to...
by Dr. John Anderson 13 years ago
The new error appear to be abbreviationshub/What-is-the-Best-Nutrition.. 410 5/20/12 hub/Cooking-Mussels-in-Beer-Wine-Re.. 410 5/20/12hub/Australian-Film-Festivals-Film-Schools-Short-Films...hub/Aut.. 410 5/20/12anyone else seeing this?
by Sharlee 3 years ago
Millions of barrels of oil released last month from the Strategic Petroleum Reserve by President Joe Biden went to foreign nations, including China, according to Reuters.Biden ordered the release of 50 million barrels of oil from the Strategic Petroleum Reserve last November, 30 million...
by Kathryn L Hill 6 months ago
What are the the improvements we want to see going forward. Of course, Kamala says she is her own person and will implement her own agenda.What will that agenda be? She has stated she wants to bring down grocery prices and help new home owners pay for their down payments, but government has pretty...
by kerryg 6 weeks ago
Contrary to what has been suggested in several posts here over the last few weeks, Obama's supposed imposition of "regulation after regulation, roadblock after roadblock" is not what's holding up domestic oil drilling, it's the oil companies themselves holding out for higher profits.This...
by Leslie McCowen 13 years ago
Boehner says they have been working waaaaay too hard....time for another vaca.What do you say, $10,000 that they go to Tahiti?
Copyright © 2025 The Arena Media Brands, LLC and respective content providers on this website. HubPages® is a registered trademark of The Arena Platform, Inc. Other product and company names shown may be trademarks of their respective owners. The Arena Media Brands, LLC and respective content providers to this website may receive compensation for some links to products and services on this website.
Copyright © 2025 Maven Media Brands, LLC and respective owners.
As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.
For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://corp.maven.io/privacy-policy
Show DetailsNecessary | |
---|---|
HubPages Device ID | This is used to identify particular browsers or devices when the access the service, and is used for security reasons. |
Login | This is necessary to sign in to the HubPages Service. |
Google Recaptcha | This is used to prevent bots and spam. (Privacy Policy) |
Akismet | This is used to detect comment spam. (Privacy Policy) |
HubPages Google Analytics | This is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy) |
HubPages Traffic Pixel | This is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized. |
Amazon Web Services | This is a cloud services platform that we used to host our service. (Privacy Policy) |
Cloudflare | This is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy) |
Google Hosted Libraries | Javascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy) |
Features | |
---|---|
Google Custom Search | This is feature allows you to search the site. (Privacy Policy) |
Google Maps | Some articles have Google Maps embedded in them. (Privacy Policy) |
Google Charts | This is used to display charts and graphs on articles and the author center. (Privacy Policy) |
Google AdSense Host API | This service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy) |
Google YouTube | Some articles have YouTube videos embedded in them. (Privacy Policy) |
Vimeo | Some articles have Vimeo videos embedded in them. (Privacy Policy) |
Paypal | This is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy) |
Facebook Login | You can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy) |
Maven | This supports the Maven widget and search functionality. (Privacy Policy) |
Marketing | |
---|---|
Google AdSense | This is an ad network. (Privacy Policy) |
Google DoubleClick | Google provides ad serving technology and runs an ad network. (Privacy Policy) |
Index Exchange | This is an ad network. (Privacy Policy) |
Sovrn | This is an ad network. (Privacy Policy) |
Facebook Ads | This is an ad network. (Privacy Policy) |
Amazon Unified Ad Marketplace | This is an ad network. (Privacy Policy) |
AppNexus | This is an ad network. (Privacy Policy) |
Openx | This is an ad network. (Privacy Policy) |
Rubicon Project | This is an ad network. (Privacy Policy) |
TripleLift | This is an ad network. (Privacy Policy) |
Say Media | We partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy) |
Remarketing Pixels | We may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites. |
Conversion Tracking Pixels | We may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service. |
Statistics | |
---|---|
Author Google Analytics | This is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy) |
Comscore | ComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy) |
Amazon Tracking Pixel | Some articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy) |
Clicksco | This is a data management platform studying reader behavior (Privacy Policy) |