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As if that weren't bad enough news for consumers, the Saudis claim
they need at least $32 a barrel to justify this new production, because
it requires waterflooding. Desalinating water from the Gulf and
pumping it out to the desert, and then pumping it down into
oilfields, is expensive.
Waterflooding on newborn Saudi wells? Isn't waterflooding
petroleum Viagra for aging wells?
Because the combination of the news that there's no new Saudi Light
coming on stream for the next seven years plus the 27% projected
decline from existing fields means Hubbert's Peak has arrived in
Saudi Arabia. The Kingdom's decline rate will be among the world's
fastest as this decade wanes. Most importantly, Hubbert's Peak must
have arrived for Ghawar, the world's biggest oilfield, and Wall Street's
most-cited reason for assuring us month after month that oil prices
would plunge because there were so many billions of barrels of
readily-available crude overhanging the market.
The Street's perception was a tad outdated: OPEC had 15 million b/d
of excess capacity in 1986 when the Saudis decided to rein in OPEC
cheaters and head off further development of major projects abroad,
including the North Sea and the Alberta oil sands. By 2002, OPEC's
unused capacity was down to the one million b/d range, which is,
effectively, too tiny to give the cartel the power to set prices.
[Saudi Arabia is currently producing a large part of the world's output and has 25% of the world's reserves.
sorry but i just have to say, that is wrong, they hold 55 percent of the worlds crude oil reserves. They produce twenty-eight percent of the worlds oil. thanks.
[edit on 15-1-2008 by iwillfindthetruth]
Originally posted by gotrox
I constantly wonder at how Jupiter, Saturn, Uranus and Neptune, along with numerous moons, comets, asteroids and such, got all their hydrocarbons------ tens of thousands of earth masses of it.
Must have been a plague of dead dino poop and fallen leaves.
Saudi Arabia's King Abdullah said he had ordered some new oil discoveries left untapped to preserve oil wealth in the world's top exporter for future generations…
"When there were some new finds, I told them, 'no, leave it in the ground, with grace from god, our children need it'," King Abdullah said…
Saudi production capacity stands at around 11.3 million bpd, and is scheduled to rise to 12.5 million bpd next year.