Saudi alarmed by high oil demand

Saudi alarmed by high oil demand

www.emirates247.com

Saudi Arabia is consuming up nearly a third of its crude oil output and supply could fail to meet domestic demand in 2030 if the high consumption trends are maintained, according to a government report.

The Gulf kingdom, the world’s top oil exporter and largest Arab economy, currently produces nearly 8.5 million barrels per day of crude but local demand is as high as 2.5-3.4 million bpd, mostly used in power generation, said the report by the state-controlled Saudi Electricity Company (SEC).

(visit the link for the full news article)

The report suggested banning work of major shopping outlets during the afternoon period until 7.00 pm and limiting work periods for government departments to between 6.00 am to 12.00 noon in summer to save energy.

That we're well past peak oil has been clear to me for a while. Not that the MSM cares to report on that, but former CEO of Shell mentioned years ago that peak oil would be reached by 2015 and considering the pace at which oil is consumed, that seemed to be a rather optimistic forecast.

If the Saud's are afraid that domestic demand will exceed supply (being the largest oil exporter), then what does that mean for the rest of the world? We're largely dependent on Saudi oil. China has recently overtaken the US as the biggest importer of Saudi oil and their hunger is not likely to lessen soon.



www.emirates247.com
(visit the link for the full news article)

That sounds very worrying and you can certainly read a lot into that move...

No wonder there was deep reluctance to increase output to bring down prices at the last meeting..

ETA S&F

Maybe the plan is to use up the Saudi (and mid-east) supply until it's gone, then cut them off from world supply.

Speculating here, just a thought...

Well, you bring up a good point. It's not just peak oil we need to consider, but also peak oil exports which will arrive sooner and move faster than the oil production curve itself.

There are only a handful of 'exporters' left, and all of the 'importers' should realize that the internal consumption of the exporters is rising exponentially, while at the same time the global oil supply may finally start to slack.

reply to post by boncho


That's exactly what I was thinking. Personally, I think we have more oil than them, but we don't drill it. We want them to deplete their reserves so that we end up being the big dog when they run out.

i hope the tap runs dry and we can finally give the 1 finger salute to saudi arabia.

been a long time coming.

Originally posted by haarvik
reply to post by boncho

 

That's exactly what I was thinking. Personally, I think we have more oil than them, but we don't drill it. We want them to deplete their reserves so that we end up being the big dog when they run out.

Why use yours when you can use someone else's? (Been considering this for awhile)

Originally posted by neo96
i hope the tap runs dry and we can finally give the 1 finger salute to saudi arabia.

been a long time coming.

What about the poor helpless royal family heirs that will be cut off from their oil revenue... How will they afford their cars?

I think what this means is the Saudi's are NOT really alarmed by high oil demand, but that they want to convince people that there is a crisis and therefore a legitimate excuse for them to raise the price of oil. I can't help but see an article like this and think that we are being played like a cheap violin.

Originally posted by boncho
Maybe the plan is to use up the Saudi (and mid-east) supply until it's gone, then cut them off from world supply.

Speculating here, just a thought...

BY the time that happens Sharia law will probably be practiced freely in the US and half of Congress will be celebratin Ramadan.

HOLY COW...


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I remember reading this article . "The Looming Crisis In Worldwide Oil Supplies", which predicted a crisis based on two stages..

Crisis Stage One - Increased Oil Prices

Crisis Stage Two - Permanent Production Decline