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!
" 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 Lorelei Cohen 3 years ago
I have not seen such a long dry spell before leading me to think there must be something affecting sales totals. Traffic has not changed drastically enough to create this much of a down drop. Is there a reporting delay going on or is something else amiss in reporting Amazon sales? I noticed stars...
by Dr. John Anderson 6 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 Leslie McCowen 6 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?
by Aqeel Saeed 9 years ago
It fluctuate between $ 148 per barrel to $ 33 per barrel.
by RottingNation 10 years ago
When analyzing why gas prices are too high I can to one conclusion: its the governments fault. They start unnecessary overseas wars, make 40 cents per gallon profit, and subsidize illogical "alternative fuels" like ethanol. Putting this into perspective, oil companies...
by kerryg 7 years 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...
Copyright © 2019 HubPages Inc. and respective owners. Other product and company names shown may be trademarks of their respective owners. HubPages® is a registered Service Mark of HubPages, Inc. HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.
|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.|
|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.|
|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.|