As we all know oil is finite. There’s a limited supply. Most nations in fact have already reached their peak. Texan oil drills used to pump tons of the black stuff every day; now it is barely trickle. The peak oil theory suggests that there’ll be a huge divide been supply and demand. Is this alarmist?
Well..let me put another question to you. Does OPEC’s decision to increase oil production by only a “token” amount, despite record-high prices, mean they are tapped out? My friends over at The Daily Green have written an interesting series of posts about the implications of the OPEC meeting for the Peak Oil debate. — that is, whether and when the world will have pumped all its easily available oil supplies.
With a particular focus on Saudi Arabia, they say that:
OPEC nations control 80% of the world’s known reserves of oil, and pump about 40% of its current supply. Analysts doubt that these countries have as much oil as they say they do — because they don’t admit to drawing down the tank, so to speak. Despite continued pumping, and despite having failed to find any significant new oil fields, their stated reserves remain relatively stable. And countries like Saudi Arabia keep investing in oil infrastructure with no obvious increase in production — suggesting the Saudis might be working harder and harder to get at dwindling reserves.
Saudi Arabia, with about a quarter of proven world reserves, hasn’t admitted to any difficulties pumping enough oil to maintain production, though other OPEC nations have.
You can see more of the Daily Green’s excellent article on their site
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