the first faint Saudi admission.

From: <glennmorton@entouch.net>
Date: Wed Jul 06 2005 - 18:09:41 EDT

Today in the Financial Times the Sauds have for the first time said that they will be unable to fuel the world---in 2020. They have yet to acknowledge the obvious--that they are unable to fuel the world today. If they can, one would have to ask why the price of oil hit $61 today.

The article can be found at http://news.ft.com/cms/s/e0cdc282-ee47-11d9-98e5-00000e2511c8.html

 

The last 2 paragraphs are quite interesting to me. The article says:

>>>

Saudi Arabia pumps 9.5m b/d and has assured consumer countries that it could reach 12.5m b/d in 2009 and probably 15m b/d eventually. But a senior western energy official said: “They said it would be extremely difficult to move above that figure”.

But European officials hope that energy saving measures could curb oil demand. They believe Opec could produce the 44m b/d the world would need if consumers adopted efficiency measures under discussion by governments in the US and Europe. <<<<

 

The fact is that natural decline removes 1 million barrels per day of production from the world each year.  So, if they can increase to 12.5 million barrels by 2009, that means that the world would have lost 1 million barrels per day of capacity. 

But the second paragraph,last sentence illustrates the absolutely, utter stupidity which politicians display when the topic of oil comes up.  They believe that OPEC could produce MORE if consumers were more energy efficient??????? Wow, all we have to do is stop using oil and magically more oil will appear at our pumps.  What imbecility. Conservation does not magically put oil into rocks for us to pump out of the ground.

And we vote for these kind of guys which may say something about us.

 

Received on Wed Jul 6 18:11:21 2005