[CAMWEST-discuss] peak oil
danny_hannan at yahoo.com
Mon Jul 12 10:34:04 EST 2010
Many large oil companies have reduced or even stopped exploring for oil. The
economies of exploration are such that the costs for exploration and development
are greater than the returns even with generous tax rebates for exploration.
The cost for insurance for deep water oil wells will increase by at least 30%
(Loyds of London) so is Saudi's anouncement the start of the big decline in oil
Weekend: Peak Oil and the Myth Behind Our Energy Independence
By Keith Kohl | Saturday, July 10th, 2010
Prayers won't save the Saudis from peak oil
I'd love nothing more than to sit here and tell you that we'll be fine.
I can't do that.
Giving the public a false sense of security will make matter worse — much worse.
It should be clear that an oil crunch is about to take center stage... again.
This time, however, it will make $150/bbl oil look like pennies.
While most of us were enjoying our Independence Day festivities, Saudi Arabia's
King Abdullah dropped a bombshell....
According to the Saudi press, the Saudi King ordered a complete halt to oil
You read that correctly.
Takes your mind off of the BP drilling ban, doesn't it?
As you know, Saudi Arabia is the world's largest oil producer, pumping out 8.26
million barrels per day just last month. The country holds reserves of more than
260 billion barrels of crude oil and condensate.
Why are they halting exploration?
According to King Abdullah: "... I have ordered a halt to all oil explorations
so part of this wealth is left for our sons and successors, God willing."
Could this finally be the nail on the peak oil coffin? Is the mighty Ghawar oil
field about to follow the same path as Mexico's Cantarell oil field?
At this point, only time will tell. The Saudis closely guard their oil field
data, so it's impossible to know for certain.
And don't forget that OPEC members are masters of deception. OPEC members
magically doubled their reserves in 1980s; Iraq did it twice in five years.
Either way, it's a strong message from Saudi Arabia to the world — one that
says, “Don't expect us to keep the taps open for long.” danny_hannan at yahoo.com
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