NEWS: Saudis Say They Have Enough Oil for Globe

Ali al-Naimi, Saudi Oil Minister stated that the kingdom has 'Enough oil for the globe' and that 'Saudi Arabians reserves are plentiful'. This comes in light of a recent spike in oil prices by OPEC only a few days ago.



This statement by Saudi Arabia can only be related to the statement made by White House officials proclaiming that would like to see lower oil prices somewhere in the range of twenty-five dollars a barrel.

Al-Naimi says that the main problem facing oil production is a lack of efficient technology which creates a 'bottleneck' in oil production. Saudi Arabia pledges to increase oil production by 14% by 2009 which could alleviate the peak oil problem that has seemed to endanger our way of life.

"Very high or unstable prices are not in the interest of producers," he said, adding that oil producers also suffer when the world economy slows.

Right, and I have a purple unicorn in my garage.

It has been proven time after time that demand for oil does not follow regular economic laws when prices increase. Prices skyrocket and the demand goes down a little bit but not at all proportionately.

Saudi output may increase but that doesn't mean they have enough oil "for the globe..." Increased oil production means more income for Saudis, even if the prices drop. This gives the Saudis a larger fraction of OPEC output, which is good for the Saudis.

Zip


[edit on 18-5-2005 by Zipdot]

Zipdot
Yea I noticed that statement also. High prices can only can oil be in the interest of oil producers. There responsibility is not to provide oil to the rest of the world but to make as much money as possible off this situation.

I relish, crave, and cannot wait for the day when the USA develops a fuel source that doesn't require oil. Then we can tell the Saudis and the rest of the oil-rich Middle East to kiss our collective arses.