I was wondering, what would happen if the sauds admit to having peak oil production, and that their biggest oil fields are starting to decline. what would happen to oil?
lol well yeah but will it just go up like crazy, and do a tasr just keep going up and up since everybody knows the saud cant do anything about it. The only thing I could see is that the fed would have to dramactically raise interest rates, just to cause a deep recession to dry up oil demand.
About 65 to 70 on that news alone if verified. Now how do you verify that--------that is the question as they are always full of bullsh*t.
I doubt that anyone would believe it if these claims were made. By the time an upside limit in capacity is accepted as a truth, the thing would go silly with people not only speculating but stockpiling. I'd personally count on the Yanks buying up as much oil as possible so they can hold all the trump cards should a genuine depletion be apparent. All about power! Long term, I think you'd see lazy fat cat fcukers finally making an attempt to be more efficient- something long overdue for a lot of heavy oil users. As a sidenote, it would be interesting to see what alternative means of fuel/vehicles/machinery would crop up as a result. Surely, surely, surely, what with advances in solar power, hydro-electrics and glucose as power sources, some very rich people are paying some very bright people to shut the fcuk up about their alternative power sources etc.....
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
well, yeah, and they'd start making a crapload more money. pretty clever of them to keep it hush-hush, I think.
The saudis said a few weeks ago that demand will exceed supply by about 4.5mbd by 2015. Just after someone posted news on this site that Iraq was opening up 11 areas for exploration bids.