Estimates of oil reserves in Saudi Arabia are overstated, meaning crude output could peak within the next decade, leaked U.S. diplomatic cables reveal.It is interesting to note that many analysts like Colin Campbell and the late Matt Simmons knew this years ago. Of course the Saudis lied as have the other OPEC members. Many years ago OPEC set production quotas for its members based on reserves. It is funny that the Saudis have been pumping oil at the rate of 8 million barrels per day for the last twenty years and they still list their reserves at 250 billion barrels. In addition the Saudis in particular were incentivized to lie in order attract capital and the interest of its western protectors like the United States. My view continues to be that demand will increase as the BRIC's continue to grow. As production plateaus around the world higher prices will be necessary to ration the remaining production.
Washington fears Saudi Arabia overestimated its oil reserves by as much as 40 percent and the kingdom can't keep enough oil flowing to control prices, U.S. diplomatic cables obtained by WikiLeaks and published by The Guardian newspaper in London reveal.
Friday, February 11, 2011
Did Wikileaks verify peak oil
It appears that Saudi Arabia has been telling stories about their oil reserves: