Saudi Arabia cannot pump enough oil to keep a lid on prices

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DmaxSilver's picture
DmaxSilver
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Saudi Arabia cannot pump enough oil to keep a lid on prices

 

Could this be a WOW for the markets? 

http://www.guardian.co.uk/business/2011/feb/08/saudi-oil-reserves-overstated-wikileaks

Hagen's picture
Hagen
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Re: Saudi Arabia cannot pump enough oil to keep a lid on ...

Here's another link related to the topic:

http://www.zerohedge.com/article/did-wikileaks-confirm-peak-oil-saudi-sa...

If this could be a WOW? I think it will be more like "OUCH!"

 

plato1965's picture
plato1965
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Re: Saudi Arabia cannot pump enough oil to keep a lid on ...

 

 In some ways the information isn't that new.. see:  http://peakoil.com/production/ex-saudi-oil-exec-criticizes-us-govt-oil-supply-forecast/

 I think the real significance isn't the information.. so much as the timing and publicity..

 The gradual easing of the concept of peak oil into the public consciousness.   Wikileaks as an agent of confession.. leaking truth/propaganda to save governments having to fess up on their own...

 

 Probably more effective.. nobody trusts the official line anyway  - "never believe anything until it has been officially denied." (tm)

 

 

 

DurangoKid's picture
DurangoKid
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Re: Saudi Arabia cannot pump enough oil to keep a lid on ...

The Saudi oil situation highlights a more important problem: the quantity of oil in the export market.  As population and living standards rise, the ratio of domestic consumption to exports rises only to be met by depletion going the other way.  Egypt has hit this point already.  In a very short while it will stop exporting oil altogether in net terms.  Some oil may cross borders for refining, but the net effect is still zero exports.  Most of the decline rates in the export market supply are predicted to be twice that of the decline rates in production.  Now I'm thinking it might be worse than that.

Also keep in mind that Mubarak has been in power for about 30 years.  Why now? Could Egypt's oil problem, which affects every other sector, be the forcing function?  Will the US be forced to supply Egypt with food as well as weapons?  We already give their security sector about $1.3 billion in aid yearly.  After food, what else will they need?  How much will we have to give them to keep Israel happy?  A change in Egypt's status as a military power in the Middle East will have ripple effects throughout the region.  Peak oil, whether global or local, is disruptive.

Saudi Arabia could be in the same fix fairly soon.  Forget about keeping the lid on global oil prices, the House of Saud is having a hard enough time keeping the lid on their own population.  The lot of the average Saudi citizen has been worsening for years.  How long before their despiration overcomes their fear?  The House of Saud is right to fear the uprising in Egypt.  It could very well be their near future.

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docmims
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The financial crisis will

The financial crisis will cure the oil crisis as standard of living falls around the world and populations start declining due to food shortage and civil war.

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Ken C
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docmims wrote: The financial
docmims wrote:

The financial crisis will cure the oil crisis as standard of living falls around the world and populations start declining due to food shortage and civil war.

Indeed, we should all be of good cheer  because war, famine, plague and pestilence will save us from the bad times.

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