posted on Feb, 22 2005 @ 05:48 PM
With gasoline prices rising to $2.00 per gallon and oil prices hovering around $50.00 per gallon, Saudi Arabia has released a statement claiming that
they have an untapped production reserve of 2 million barrels per day. Further they claim that there production capacity can be increased an
additional 4 million bpd over the next several years and can be sustained well into the next generation.
Asked about how Saudi Arabia is going to meet the growing demand for oil in the global market and at what cost, Al-Naimi said that the Kingdom has
always been able to maintain an additional production capacity of 1.5 million to 2 million barrels per day.
“That is why we are sure we will meet most of the reasonable demands of the world,” he said.
Answering a question about Saudi oil reserves for future generations, the minister said: “When we intend to expand our production, we also take into
account the approximate life of oil fields which ranges from 50-100 years. So there is good reserve for the next generation,” he said at a joint
press conference with the Norwegian minister.
Please visit the link provided for the complete story.
With all this extra production and an apparently generational supply of such production why is there all the ruckus about depleted oil supplies?
Further, why are prices so much higher than what we saw just a couple of years ago? Is it due to the political instability brought about by the war,
or is it just price gouging by rich oil nation states? I am perplexed by the glaring difference between the “resources are running out” crowd and
this press release. If Saudi Arabia is to be believed then the world should have enough oil to sustain itself well into the future and perhaps even
into the next century. By this time we should be able to solve the fusion problem or create some other form of cheap efficient energy to supplant
It is possible that the Saudis are only blowing exhaust to calm the world’s oil markets but this seems implausible if in fact they are facing a
dwindling supply. It is difficult to fathom why a nation that is facing a dwindling supply of their only major export would release statements meant
to ease pressure on the price of their commodity.
Maybe the oil supply sky isn’t falling after all and the world won’t be ending tomorrow, unless global warming melts all the polar ice caps and
floods the coastlines of the world and the Yellowstone supercauldera explodes after India is struck by a 2 mile wide asteroid. Yes, it is good to get
a little good news now and again even if it is from the Saudis.