WikiLeaks cables: Saudi Arabia cannot pump enough oil to keep a lid on prices

WikiLeaks cables: Saudi Arabia cannot pump enough oil to keep a lid on prices

www.guardian.co.uk

The US fears that Saudi Arabia, the world's largest crude oil exporter, may not have enough reserves to prevent oil prices escalating, confidential cables from its embassy in Riyadh show

...the kingdom's crude oil reserves may have been overstated by as much as 300bn barrels – nearly 40%.

...oil price has soared in recent weeks to more than $100 a barrel...Many analysts expect that the Saudis and their Opec cartel partners would pump more oil if rising prices threatened to choke off demand

(visit the link for the full news article)

The Saudis, with the largest proven reserves on earth, have always played the role of "swing producer." When prices get too high, they turn on the taps, and when prices get too low, they turn them off, thus keeping oil prices within a relatively stable band.

The demise of this ability to manipulate the oil prices could have grave effects for the global economy.

For a long time, nations in OPEC have deliberately overstated the amount of oil they claim to have. This is because under OPEC rules, the more oil a nation has, the more it is allowed to sell by the cartel. So there is an incentive for everyone to overstate their reserves, so they can sell more. Saudi Arabia has likely been overstating its reserves for decades, and because they don't allow international inspectors in, it is almost impossible to know for sure how much oil they really have. If they've lost the ability to act as the swing producer, though, the world is likely to find out the ugly truth the hars way -- and with little time or preparation to adjust to it.

www.guardian.co.uk
(visit the link for the full news article)

But I thought Russia is the largest oil exporter? I mean I heard recently that Russia is now number one in producing oil

reply to post by silent thunder


I thought it is venezuela now with the largest reserve?

Originally posted by starwarsisreal
But I thought Russia is the largest oil exporter? I mean I heard recently that Russia is now number one in producing oil

I believe Russia surpassed the Saudis in exports 2009...I don't know if they are still the top exporters. I think the Saudis still have the largest proven reserves, though. proven reserves and exports are not the same thing.

Russia is not a member of OPEC, so their place in the world oil system is as a bit of a "wild card." Whether or not they happen to export more than the Saudis in a given year, the Saudis are still important for their "swing producer" role within OPEC, and as such they generally have more to do with global oil prices than Russia per se. Whether this changes in the future (or is changing now) remains to be seen.

For anyone who's been paying attention since 2005, the situation is pretty dire, and there will likely be devastating declines in many of the large fields in the coming months/years. It seems to be an issue of national security to not reveal the true situation to the public, and with good reason, imo.

The only good news I've seen lately was that company which announced the $1.50 synthetic oil. Something like that needs to be focused on, dumping a whole lot of $$$$$ in investments to start mass producing that stuff asap. If something like that doesn't happen within the next year or two, I think there's a good chance the riots will pretty much cover the world over, lol, and ... yeah I'll just leave it right there. Something needs to be done, asap.

Originally posted by syncelebrity
reply to post by silent thunder

 

I thought it is venezuela now with the largest reserve?

I think its still the Saudis.

As of January 28, 2011: "The Kingdom of Saudi Arabia has the world's largest oil reserves, with almost 20 per cent of the Earth's oil share with it."

Source:
www.rediff.com...

Looks like Michael Ruppert wasn't such a crack pot after all. So far most of the things he talks about in the movie collapse have made their way to the mainstream. I just wonder if his "map" of the collapse is going to prove to be true.

And yet here we sit watching windmills freeze and billions going to green BS while we have rolling blackouts across the southwest because we can't drill. It will only get worse which is what this administration actually wants I believe.

reply to post by SpaDe_


He has a general grasp on what may go down with a fair probability, from what I've seen. He's not a god, or prophet, and can't predict the future with any certainty. I know this because I was watching some of his "collapsenet" videos last year, and he made several warnings that never panned out.

I still think it's likely that global systems fall apart to some extent for a short time period sometime this decade, but imo the real collapse of natural resources & ecosystems is still a decade+ away.

well acually if you look on the usgs website
north dekota has the LARGEST know oil reserve
so america is the largest "know" and test drilled site in the world
if you dont beleive me go to the usgs

this oil res is outside of americas "strategic" oil supplies
the other "new" find is under hatai
we in new zealand have just discovered two major oil feilds with an expected three more

what you are not told is that the finds have been "know" about for decades

in the late 70s early 80s we drilled found and capped wells all over the world

why?
because if people knew how much oil there was it wouldnt be
THE LARGEST industry on earth

funny thing is a few of the elders know about the oil
the scam is called peak oil
it works on the primise that if "demand" outstrips "supply" (or perceived supply)
then prices rise

so............................if people were aware of exactly how much oil there "really" is they couldnt charge $100.00 a barrel.

so its the perception that were running out that allows speculators to raise the price on the publics "fears" that oil is scarce.

dont panic people
ITS A SCAM to charge more for less

xploder

Originally posted by silent thunder

WikiLeaks cables: Saudi Arabia cannot pump enough oil to keep a lid on prices

Let's be 100% honest here. Prices are out of line because multi-national oil corporations continue to surpass their previous earnings.

Greed is the problem not the supply.

its doesnt matter who is the largest no one has a Clue .
people posting threads about how oil is renewable dont have a clue.
But hey ill try one last time to give you a Clue this is the real world we live in not some fantasy driven pipe dream.
Ok so here goes .first you have the US the worlds biggest user of oil up untill well soon very soon as up and coming underdogs china 1.5 billion and India 1.4 billion modernize increasing there need for oil making what America needs look like a drop in a bucket
so lets say the Atlantic ocean is all oil the whole thing .now ovesly your not running out any time soon shoudl be no problems hu? WRONG .
its not the amount of oil you would have in this scenario that matters .But your ability to PUMP ,MOVE,REFINE ,And package and move again.
so ring the ocean with PUMPS can do Build pipelines Ok got that .
still TWO big problems you acnt solve so easly . Where and how do you plan to build enough refiners?
we are talking ten times as many as there is now you know.
but say you find a way thats safe and not in anyone's back yard.
ok so ONE last thing to over come GETTING it to the places its needed .
just how many trucks will you need to have moving NOW how many gas stations can you possibly supply?
This IS coming to a city near you very very soon.
heck we already have had a preview and all it took was a rumer and two days later there was no gas to be had for days .what happens when that is weeks??? hummm
but you just go on living in the looking glass make sure you follow the white rabbit who has the watch.
economy may turn around war may stop the environment could magicly repair its self .
one day sooner then you think isnt there heating gas shortages in new mexico and texas right this mint people going without heat?
sooner then you think one day very soon

reply to post by XPLodER


Best answer in this thread so far. It is all a scam to keep the corporations making all the money they can squeeze out of the people. Peak oil....what a joke.

reply to post by silent thunder


This should have people seriously asking why in the hell Obama is clearly shutting down oil production and exploration in the US? Why does it seem as though everything he does is another nail in the US coffin. Do we in fact have the first case of a US President who's real goal is our ruin? Seems more and more likely as time rolls on.

reply to post by XPLodER


What about the Aussies and the Brazilians? Don't they have large oil supplies?

reply to post by XPLodER


You mean this one:

Linky

It's TECHNICALLY RECOVERABLE reserves would last us less than 6 months.

I imagine oil companies need those profits to improve technology and keep exploring, and engineering new rigs, etc, etc...

Originally posted by fredgbear
reply to post by XPLodER

 

Best answer in this thread so far. It is all a scam to keep the corporations making all the money they can squeeze out of the people. Peak oil....what a joke.

when there are to many dimonds mined in a year
one company buys nearly the whole supply and just stores them
they choke off the supply and this increases the price

if all the dimonds held back from the supply were suddenly "dumped" on the market
the price of dimonds would be the same as gummy bears by weight
its only scarcity
or "PERCEIVED" scarcity that increases price

if the usa really wanted to lower the price of oil it would be $12.00-$15.00 a barrel
without touching "strategic" reserves

xploder

We have plenty here in the US. Just the Oil Shale reserves alone would fill our projected needs for hundreds of years. Worthless though with the ability to develop and produce being blocked so completely the Oil Companies are giving up on it.

We have huge Natural Gas Reserves. The Overthrust Belt has reserves that rival the Saudi's and yet it has been buried completely. Alaska could fill another 5% of our needs quickly but nobody can get past the EPA and the crackpots. The Oil Rigs are all in Laydown Yards rusting away.

From about 1970 on it was theorized our governments plan was to deplete the worlds supply leaving us holding the keys to the city so to speak. It almost made sense in a way and then the Environmental Fanatics were used to stop production and now it appears the plan is to destroy us and the past few Administrations appear to all be in lockstep on this. Or so it seems to me.

It's also good for the war industries why because since every nation of the world believed the oil is gone they'll fight each other