Bush to Arab nations: You're running out of oil

PRESIDENT George Bush yesterday told leaders of the oil-rich states of the Middle East that they must face up to a future without their precious hydrocarbons.

In a stark warning, he said their supplies were running out and urged them to reform and diversify their economies. The outgoing United States president told the World Economic Forum, meeting in the Egyptian resort of Sharm el-Sheikh, that it was tiADVERTISEMENTme to "prepare for the economic changes ahead".
thescotsman.scotsman.com...

Running out of oil? Well, well. Welcome to reality. Of course they're running out of oil else they would be jumping on the opportunity to sell even more oil at the current outlandish prices. The current demand hasn't dipped at all despite the ever-rising prices. Why aren't they pushing more oil into the market? If you think it's because it will lower the price of oil, think again.

Economics 101. The more you have, the more you spend. This is true with oil as well. Unlike the worthless paper money that we trade with our neighbors, oil has real value in it's ability to do work. The price isn't going to drop unless the market is flooded with oil. When's the last time you saw a commercial from a gas station where they had to beg you to come and buy their gasoline. "This weekend only, gasoline is 20% - 45% off. Come get it now!" No, this isn't happening because they're not even able to meet current world demand. If Saudi Arabia can pump out 12 MBD like they claim, then why are then throttled back to

Saudi Arabia remains heavily dependent on oil and petroleum-related industries, including petrochemicals and petroleum refining. The IMF reported that in 2005, oil export revenues accounted for around 90 percent of total Saudi export earnings, 70-80 percent of state revenues, and 44 percent of the country's gross domestic product (GDP). In order to defend their most significant source of economic growth, Saudi Arabia is increasing its oil production capacity to 12 million barrels per day (bbl/d), by 2009.
www.eia.doe.gov...

12 million barrels a day? They better get stepping cause they're not going to make their goals at the current rate. Their recent announcement to increase production by 300,000 barrels a day doesn't even put them at 9.5 million barrels a day. Looks like someone isn't able to keep up.

Saudi Arabia will boost production by about 3.3 percent to 9.45 million barrels a day in June, Oil Minister Ali al-Naimi said in Riyadh following a meeting between Bush and Saudi Arabia's King Abdullah.
www.bloomberg.com...

Of course it's not just Saudi Arabia that can't keep up. World demand keeps rising, and despite the fact that the prices of oil grows nearly every day, not one country seems to be able to do anything about it. You'd think that at least one of these greedy oil nations would try to make an extra buck or two. Funny, they all seem to have gotten over their love of money at the same time. Or just maybe, none of them can do a thing about it. I think that's the most likely scenario. I don't see any single market increasing supply to account for the record prices. Duh! That's because no one has it.

So is Pres. Bush leaking what he's know all along? The world is running out of oil. Do you think this is the reason we have 150,000 - 200,000 troops in the middle of the Persian Gulf region? Someone has to be there to make sure that the U.S. gets the biggest straw to slurp out what remains at the bottom of the cup.

Thank you Pres. Bush. Finally, someone is willing to say what everyone knows. The Arab nations are lying through their teeth about how much oil they have left. It's not near as much as they would like you to think. The final thoughts in this news story sum up what I've been thinking for several years.

Gordon Brown wants Opec to pump more oil to bring down prices. But experts suspect that the size of Opec reserves (80 years at current consumption) have been greatly exaggerated by local politicians. If so, peak oil could be here sooner than we think – some predict as early as 2012.