What would happen to oil if the Sauds admit to having peaked out oil production?

What would happen if the Saudis balked ?

.......................................................................................

Alternatives would be assured of a safer future price....

Once given this confidence...alternative energy would take hold....because for the first time...long term investors would be confident that their investments would pay off...

Remember the gas lines in 1980...and the fear that permeated the air about scarcity...?

Annually renewable and green alternatives would be the best thing that ever happen to this world...

The Saudis have had their economic run (ruin)......

Time for alternatives to enginger a can-do price platform....
 
Quote from Sparohok:

Demand is increasing every year. Long before the Saudis reach peak production, their production will fall short of new demand. This has already happened for light crude, and the Saudis have warned that they will be unable to meet world demand in 10 or 15 years even with heavy crude.

http://www.finfacts.com/irelandbusinessnews/publish/article_10002504.shtml

The crisis will come well before the Saudi production peak, not after.

Martin
More...
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Sparohawk;

Not a prediction, but probably the same thing that usually happens in an uptrend ;
the price tends to go up.:cool:

Disagree about a crisis;
time would fail me to mention the huge number of oil substitutes.

And even though perhaps I am tighter than most;
have used FAR LESS gas/oil this year than ever.

Short term and med term oil/gas sector still looks rather uptrendy.:cool:
 
quite a while back i posted a link regarding a story that warned this was about to happen.

mr oil usa & us oil minister (former) from saudi were both warning that reserves were low in saudi and they could be dry within 9 years at the current rate of production.

everyone thought it was bs on et, despite coming from the bbc.

i guess people just believe what they want to at the end of the day
 
Quote from FredBloggs:

quite a while back i posted a link regarding a story that warned this was about to happen.

mr oil usa & us oil minister (former) from saudi were both warning that reserves were low in saudi and they could be dry within 9 years at the current rate of production.

everyone thought it was bs on et, despite coming from the bbc.

i guess people just believe what they want to at the end of the day
More...

Fred,

Do you have a link for this story?

DS
 
Quote from dougcs:

Fred,

Do you have a link for this story?

DS
More...

not off hand - & cant dig it out during market hours.

search in et for it. thread probably contains 'saudi' in the title of the thread.

the link may have expired now anyway as it was some months old.
 
Today, Simmons suspects that the Saudis are injecting 15 to 18 million barrels of water per day into Ghawar - three times the quantity of oil that is being produced. Simmons believes Saudi oil production can collapse at any time. The proof will be in the pudding. If the Saudi's are unable to increase oil production, this will become most clear in the fourth quarter when OPEC is scheduled to increase production to 30.5 - 31 million barrels per day from the 28 mbpd it produces currently.


http://www.fromthewilderness.com/free/ww3/070505_world_stories.shtml
 
It is, to me, completely implausible that the Saudis would be hiding a desperate shortage of oil reserves. That basically would mean that they are intentionally deceiving the market so that they can sell oil at far below its fair price. What possible reason could they have to be doing that?

The Saudi economy is not very energy efficient. They need oil too. When they really start running out of oil they are going to be hoarding it, not talking down the market price.

Martin
 
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