Have the Saudi Arabian oil fields peaked?

I saw this morning an article on the Drudge Report which is fascinating. Last July 22, I posted a note to the ASA on Middle Eastern Oil peaking. This article seems to confirm it and it does scare me. Last August the Saudi's announced that they would not be able to meet the monthly quota but gave no reason. It made me a bit suspicious. But the Saudis are very secretive. The article is at
http://www.nytimes.com/2004/02/24/business/24OIL.html?ei=5062&en=bc7d7425bb64c8cd&ex=1078203600&partner=GOOGLE&pagewanted=print&position=

The article says:

"But the country's oil fields now are in decline, prompting industry and government officials to raise serious questions about whether the kingdom will be able to satisfy the world's thirst for oil in coming years."

"Energy forecasts call for Saudi Arabia to almost double its output in the next decade and after. Oil executives and government officials in the United States and Saudi Arabia, however, say capacity will probably stall near current levels, potentially creating a significant gap in the global energy supply."

If the article is true, then the bad times are about to roll.
If the article is true, then those optimists at the USGS who said there was so much oil that we wouldn't peak until 2020 would be wrong.
If the article is true, the Saudi's will not be able to buy peace from their populace by social programs. We might face a sudden cut off of oil due to a revolution.
Received on Tue Feb 24 07:07:11 2004