Projections by peak oil people that Saudi Arabia oil reserves have been grossly overstated (by 40%) and that the country can no longer prevent world oil prices rising have been confirmed in confidential cables from the US Consulate, released by WikiLeaks
The cables show that the US fears that Saudi Arabia, the world's largest crude oil exporter, may not have enough reserves to prevent oil prices escalating. Al Jazerra English News item here. Hell - even Fox News is worried !!
According to the cables, which date between 2007-09, Husseini, said Saudi Arabia might reach an output of 12m barrels a day in 10 years - but before then – possibly as early as 2012 – global oil production would have hit its highest point. This crunch point is known as "peak oil".
Husseini said that at that point Aramco would not be able to stop the rise of global oil prices because the Saudi energy industry had overstated its recoverable reserves to spur foreign investment. He argued that Aramco had badly underestimated the time needed to bring new oil on tap.
Seven months later, the US embassy in Riyadh went further in two more cables.
"Our mission now questions how much the Saudis can now substantively influence the crude markets over the long term. Clearly they can drive prices up, but we question whether they any longer have the power to drive prices down for a prolonged period."A fourth cable, in October 2009, claimed that escalating electricity demand by Saudi Arabia may further constrain Saudi oil exports, as the country would have to “canabalise” more of its oil production for internal use such as water purifying and to generate electricity.
More proof if we needed it that the US and other western nations (including NZ) have known from some time that an oil crunch is looming, but they have chosen not to tell us !