I can't read Dutch so I have no idea what the article was trying to get at but I do think there are more reasons for the drop in production than just the amount in the ground.

War in Iraq, Hurricanes in the Gulf of Mexico, Civil war in Nigeria, Political unrest in Venezuela, etc. etc. etc.

Overall though the prodution is matching demand, it's not likely to be that way forever, but at least for the next decade or so. War, natural disasters, financial alchemy by futures traders and political unrest are the big factors likely to screw up production in the near future.

As for Chevron, they are definately having production problems, they have major production facilities in Nigeria where Rebels are fighting the Government for control of the oil industry and causing shut downs. Not to mention the problems with other governments over increasingly government controlled centralized production versus foriegn companies like Chevron.

Is Nigeria even selling half of what it produces? Sure production is dropping but profits are reaching all time highs for the big oil industries, so what do they care. Governments won't be their biggest problem soon once oil reaches $100 a barrel. All its going to take is one attack for an even steeper drop in production sending price skyrocketing.

Every oil company in the world will say this. As the price of oil rises, so will production. They will claim oil shortages, with 6 cement pluged zones in one well. I work in the oilfield, and we are super busy at this moment, but 5 months ago, it was very slow. The oil is there, but oil companies know how supply and demand work. We could open up everyzone, in every oilwell, and produce billions of barrels a day. Oil would be super cheap, for awhile. When the formations start to loose pressure, and you need to start using water/steam injection, or pump jacks, cost of production is going to climb, and the price of oil will spike very sharply.

The supply/demand formula is fixed in the oil industry. OPEC and the oil giants know how to make artificial shortages and other supply issues. The fact is, no matter who you talk to there is nowhere for demand to go but up. I'm begining to wonder if the prices right now are'nt 150% of what is realistic and it's just the greed factor at work. That almost makes more sense then a real shortage looming on the horizon.

Damn greedy commodities traders, corporations, and oil monarchies. I can't keep paying $2.20 a gallon US.