Is Saudi Oil Drying Up?

I agree with Matthew Simmons that we have reached Peak Oil. And that
Saudi Arabia's supply isn't as plentiful as they would have us believe. Why else would they be so secretive with their reserves data?

I wonder how much this has to do with the USAs desire to roll up the
Iranian Mullahs? Get them out of the way, put a puppet government in place and enjoy that Iranian crude as Saudi Arabia's wells dry up. The only real problem with that is, of course, China. They just signed a fat contract with Iran to supply a heftly chunk of China's petroleum needs for many years into the future.

The Saudis' approaching twilight
By Kéllia Ramares
Online Journal Associate Editor

Matthew R. Simmons is the founder and CEO of Simmons & Co., International, a Houston-based investment bank for the energy industry. Although Simmons is not himself a petroleum geologist or petroleum engineer, he has learned much about how and where oil and natural gas are produced in his more than 35 years of involvement with the industry as a financial advisor.

Simmons has built up a great store of knowledge about Saudi Arabia, the "swing producer" that oil-consuming nations, such as the United States, have depended on for decades to make sure there is enough supply on world markets. Despite tight supplies and high prices, and recent attention to Peak Oil, about which Simmons has been warning for years, the Saudis insist that they can maintain and even expand their current level of oil production for decades to come. In fact, on the morning of September 28, 2004, just hours before I interviewed Simmons, the Saudis announced that they would increase oil production capacity. In debates, in articles, and now in his book, Twilight in the Desert, Simmons is challenging the Saudi assertion that the kingdom can keep ratcheting up production to meet the needs of ever oil-thirstier world markets.
onlinejournal.com...

SA is pretty interesting in that they have contradicted themselves. We already are pretty familiar with the Saudis claim that "no need to worry, we have everything under control and will be able to provide whenver you need us to"

However back in early summer 2005 they stated they would not be able to meet demand in 10 or 15 years. But even today they say no need to worry.... I guess it all depends on who you talk to.

SA: OPEC wont meet demand in 10 to 15 years

They're adding an awful lot of water to their oil, which can't be good for anyone.

I think they're short on what they claim.

I think that's why we (our government) are so big on acquring Iran. I mean.. disarming Iran of nookular weapons.

Well if that is true then you see why Iraq was so important and then Iran also.

We can not have a dictatorship and an Islamic fundamentalist countries dominating what could be the last oil resources in abundance in the world.

But is all these worth it? even if it means the alienation of an entire race for the good of the world?

Perhaps looking for alternatives to oil is a better way and a lot of less hazard.

If the United States could send a man to the moon, there's no reason why we cannot develop a comprehensive national energy policy that will ween us off middle eastern oil.

Anyone who disagrees with that might as well come out and say we didn't put a man on the moon.

Very simple EastCoastKid, the oil barons had invested to much money into their business and they will wait until reserves run dried.

Remember they make profits when gas is up so a shortage of oil will be good for them at least for a while.

By them they will have their fortunes involve on alternative fuel.

They will lose not a penny in the entire deal.

Please check out some of the others threads on this forum.

This thread should answer at least some of your questions and if it does not please let me know so i can cleared up.

The doubt that is driving up prices is also killing people all around the world.

Stellar

Mod Edit: Fixed Link.

[edit on 16/1/2006 by Mirthful Me]

Originally posted by StellarX
This thread should answer at least some of your questions and if it does not please let me know so i can cleared up.

The doubt that is driving up prices is also killing people all around the world.

Thanx for the link, Stellar.

I'll checkit out.

Originally posted by Thatoneguy
However back in early summer 2005 they stated they would not be able to meet demand in 10 or 15 years. But even today they say no need to worry.... I guess it all depends on who you talk to.

SA: OPEC wont meet demand in 10 to 15 years

Hey, if you control Iran and Iraq, who needs Saudi?

Notice they said OPEC, not Saudi alone, which would include Iran and Iraq

I say aks the vatican they havy all the scrips.
I would like to know what is such a secret to the human race?
I do not this would make our god happy!!!!!!!!!!
Why are we kept in the dark abuot the TRUTH OF OUR LIVES AND PAST AND FUTURE.
I BELEVE SOME OF US HAVE A BETTER SENCE OF OUR BEAING.

I'm half-way through Matthew Simmon's book "Twilight in the Desert" and I can assure you that you probably don't know the half of the problems that the Saudis are facing with their oil productions. Their water cuts (Amount of water in the oil) are at 33% to 50% in their best wells and the natural pressure that keeps the oil flowing freely is dropping off.

Their oil fields are very permeable which means as they suck out oil, more oil can move in fast to replace it. That's great. But now they are finding that this feature also allows the water they are injecting at the oil field perimeters is rushing ahead of the oil instead of pushing the oil in front of it. This causes their wells to draw out more and more water.

Oil hits record above $132 on weak supply
money.cnn.com...

U.S. light crude for July delivery reached as high as $132.08 a barrel, and was up $2.75 to $131.73 a barrel on the New York Mercantile Exchange at 11:04 a.m. ET. Prior to the 10:30 a.m. ET, oil was down 29 cents to $128.69.

www.bloomberg.com...

The market is really looking for light sweet crude and there isn't really a huge demand for what Saudi Arabia has to offer,'' said Gerard Burg, an energy and minerals economist at National Australia Bank Ltd. in Melbourne. ``Oil is primarily used as a transport fuel these days and the heavier grades that yield less transport fuels are less desired.''

Arabian oil is no longer in demand. Seems they have run out of "light crude" oil. Or they are pumping less and less of it. Same thing about Iran, they have full reservoirs, even put their oil in tanker ships that wait in the harbor. Nobody wants "heavy crude", not all the refineries can handle it.
And new refineries have not been built for decades.
That is why the prices are going up with 1 or 2 $ a day, and it will accelerate.


Two forums for anybody interested in this oil stuff :
www.peakoil.com...
www.doomers.us...