The internet appears to have been buzzing with the latest offering from the infamous Wikileaks this week. The two articles below are from The Guardian and they appear to be a gift to all the Peak Oil ‘nuts’ out there. Why? Well, it transpires that the Americans were made aware a few years back that the Saudis have been doing exactly what has been suspected of them for a while – overstating their actual ‘proven’ oil reserves. In fact, its suggested that they have been overstating their reserves by possibly 40%. Apparently, a leading Saudi oil analyst informed the US that Saudi Arabia would not, in all likelihood, meet its projected target of 12.5 million barrels per day to keep prices in check in future. The suggestion is that things could come to head as early as 2012, when global peak oil production could finally peak (the IEA has already said crude peaked in 2006). Saudi Arabia would be in no position to take up the slack, by implication.
Naturally, the Americans were a little worried about this and have allegedly kept quiet about it. Understandable, of course, but the problem with Peak Oil is that it has not entered the public consciousness with the level of seriousness it deserves, which is unfortunate (whether its true or not is still, rightly, subject to debate – but surely it should be given equal consideration to that other major perceived threat also featured on this site, climate change.)
Anyway, I would really recommend reading both of these articles, as they both deal with the issue very well:
Until the next post – Owen Law