sossij Posted February 9, 2011 Share Posted February 9, 2011 "WikiLeaks cables: Saudi Arabia cannot pump enough oil to keep a lid on prices US diplomat convinced by Saudi expert that reserves of world's biggest oil exporter have been overstated by nearly 40% The US fears that Saudi Arabia, the world's largest crude oil exporter, may not have enough reserves to prevent oil prices escalating, confidential cables from its embassy in Riyadh show. The cables, released by WikiLeaks, urge Washington to take seriously a warning from a senior Saudi government oil executive that the kingdom's crude oil reserves may have been overstated by as much as 300bn barrels – nearly 40%." Article continues at: http://www.guardian.co.uk/business/2011/feb/08/saudi-oil-reserves-overstated-wikileaks Quote Link to comment Share on other sites More sharing options...
Frank Hovis Posted February 9, 2011 Share Posted February 9, 2011 However, Sadad al-Husseini, a geologist and former head of exploration at the Saudi oil monopoly Aramco, met the US consul general in Riyadh in November 2007 and told the US diplomat that Aramco's 12.5m barrel-a-day capacity needed to keep a lid on prices could not be reached.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". $200 oil Bring It On Quote Link to comment Share on other sites More sharing options...
Pent Up Posted February 9, 2011 Share Posted February 9, 2011 Or if OPEC stop limiting supply then it won't be a problem. At least not yet. Quote Link to comment Share on other sites More sharing options...
Ruffneck Posted February 9, 2011 Share Posted February 9, 2011 Lol these leaks are a joke. This news is great news for the big oil companies who can reap ever higher profits even though there is enough untapped oil in the US to satisfy world demand for 100 years or more. Quote Link to comment Share on other sites More sharing options...
Pauly_Boy Posted February 9, 2011 Share Posted February 9, 2011 Lol these leaks are a joke. This news is great news for the big oil companies who can reap ever higher profits even though there is enough untapped oil in the US to satisfy world demand for 100 years or more. Errr, where is that then?? I thought the us had bugger all left or are u talking about Alaska? Quote Link to comment Share on other sites More sharing options...
tallguy Posted February 9, 2011 Share Posted February 9, 2011 Errr, where is that then?? I thought the us had bugger all left or are u talking about Alaska? He's talking out of his ****. The USA peaked in their oil production decades ago Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted February 9, 2011 Share Posted February 9, 2011 Lol these leaks are a joke. This news is great news for the big oil companies who can reap ever higher profits even though there is enough untapped oil in the US to satisfy world demand for 100 years or more. Sooo... the big oil companies, who had all their major middle eastern assets seized by the governments of those countries, are allowing OPEC to make vast profits on those same assets. When they could be selling all this 'untapped' oil themselves, increasing their own profits. Hmmm.. have to say that if your conspiricy theory involves Big Oil acting like Greenpeace on Hash Friday, it's probably wrong. Quote Link to comment Share on other sites More sharing options...
LuckyOne Posted February 9, 2011 Share Posted February 9, 2011 He's talking out of his ****. The USA peaked in their oil production decades ago Aren't there about 1.5 trillion barrels of oil shale reserves that could be exploited if prices rose high enough and shortages became large enough that the environmental objections will get over ruled when desperation sets in? Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 9, 2011 Share Posted February 9, 2011 When you are dealing with money printing idiots like Bernanke any trick in the book is worth playing so that you don;t get paid confetti for real goods. Having said that maybe Saudi now see this monetary system induced inflation as a useful tool for their overall religious aims and the spread of their form of religious regime through rolling riots and overthrown governments across middle east. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted February 9, 2011 Share Posted February 9, 2011 (edited) 24 months and we shall be filling up with the new hydrogen based fuel that they say will cost 92p a GALLON plus taxes, of course. Its already underway and the company developing it have been given protective custody and are not permitted to go hill walking. Apparently no need for much in the way of conversion if you are using petrol. If you are running a diesel sell it now. http://www.housepricecrash.co.uk/forum/index.php?showtopic=158506&st=0&p=2874024&hl=+92p%20+gallon&fromsearch=1entry2874024 Edited February 9, 2011 by Realistbear Quote Link to comment Share on other sites More sharing options...
Nationalist Posted February 9, 2011 Share Posted February 9, 2011 Buy oil - they're not making it anymore. OPEC members have a big vested interest in overstating their reserves. When OPEC applies production limits the limit is always expressed as a percentage of each country's reserves, so OPEC members cheat the system by exaggeration. Quote Link to comment Share on other sites More sharing options...
200p Posted February 9, 2011 Share Posted February 9, 2011 Buy oil juniors. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 9, 2011 Share Posted February 9, 2011 Buy oil - they're not making it anymore. OPEC members have a big vested interest in overstating their reserves. When OPEC applies production limits the limit is always expressed as a percentage of each country's reserves, so OPEC members cheat the system by exaggeration. Makes sense, any government tends to go for short term gains over long term as the participants will in their mind be long gone before the shtf. Quote Link to comment Share on other sites More sharing options...
tallguy Posted February 9, 2011 Share Posted February 9, 2011 Aren't there about 1.5 trillion barrels of oil shale reserves that could be exploited if prices rose high enough and shortages became large enough that the environmental objections will get over ruled when desperation sets in? There are indeed such reserves in Canada LO. However, the EROEI on them is terrible, the speed of flow is appalling, the amount of water needed in their processing is truly biblical in scale (they are mostly far way from large bodies of water) and the environmental polution caused by that processing is staggering. All of which means that they would not represent a viable replacement for light sweet crude (though they would undoubtably make a fortune for those who control and own their supply) and they would also not stop oil from breaching 200 dollars per barrel. I'm sure it wont have escaped your notice that 150 dollars per barrel was the price at which our global economy went into meltdown. Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted February 9, 2011 Share Posted February 9, 2011 Aren't there about 1.5 trillion barrels of oil shale reserves that could be exploited if prices rose high enough and shortages became large enough that the environmental objections will get over ruled when desperation sets in? Coal-To-Liquids should always beat 'oil shales' in terms of efficiency and price. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted February 9, 2011 Share Posted February 9, 2011 http://www.dailymail.co.uk/sciencetech/article-1351341/Relief-pumps-Revolutionary-hydrogen-fuel-cost-just-90p-GALLON-run-existing-cars.html This a non-issue. Saudi can run out of oil in 24 months and it will make zero difference. Technology has long since risen to the occasion. I knew about his in a roundabout way two years ago when I was told that car technology was being focused almost entirely away from diesel and that a new fuel was coming that would be usable in current petrol based engines. The Arabs know what is coming too--they must spike oil in the next couple years as it will soon all be over. NOTHING lasts forever and they have had a good few decades run. Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted February 9, 2011 Share Posted February 9, 2011 24 months and we shall be filling up with the new hydrogen based fuel that they say will cost 92p a GALLON plus taxes, of course. Its already underway and the company developing it have been given protective custody and are not permitted to go hill walking. Apparently no need for much in the way of conversion if you are using petrol. If you are running a diesel sell it now. http://www.housepricecrash.co.uk/forum/index.php?showtopic=158506&st=0&p=2874024&hl=+92p%20+gallon&fromsearch=1entry2874024 £10k says less than 1% of the fleet uses this by march 2013. Indeed, I'd be surprised if the number of cars using this was in double figures.. Quote Link to comment Share on other sites More sharing options...
tallguy Posted February 9, 2011 Share Posted February 9, 2011 (edited) http://www.dailymail.co.uk/sciencetech/article-1351341/Relief-pumps-Revolutionary-hydrogen-fuel-cost-just-90p-GALLON-run-existing-cars.html This a non-issue. Saudi can run out of oil in 24 months and it will make zero difference. Technology has long since risen to the occasion. I knew about his in a roundabout way two years ago when I was told that car technology was being focused almost entirely away from diesel and that a new fuel was coming that would be usable in current petrol based engines. The Arabs know what is coming too--they must spike oil in the next couple years as it will soon all be over. NOTHING lasts forever and they have had a good few decades run. The Ghawar field represents 25% of global production. Are you seriously suggesting that if this dissapeard tomorrow, the world would not be thrown into utter chaos? You don't know what you are talking about Edited February 9, 2011 by tallguy Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 9, 2011 Share Posted February 9, 2011 Guaranteed that if the peak is real and it is hit, we hit is with full velocity and minimum time to prepare thanks to the money printers, with maximum levels of debt too. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted February 9, 2011 Share Posted February 9, 2011 £10k says less than 1% of the fleet uses this by march 2013. Indeed, I'd be surprised if the number of cars using this was in double figures.. Based on the current hydrogen technology you are correct. However, they are not dealing with current technology: British scientists are refining the recipe for a hydrogen-based fuel that will run in existing cars and engines at the fraction of the cost of conventional petrol. Fossil fuel for cars will start to disappear very soon. Provided the companies involved can keep their staff safe. Quote Link to comment Share on other sites More sharing options...
tallguy Posted February 9, 2011 Share Posted February 9, 2011 (edited) Based on the current hydrogen technology you are correct. However, they are not dealing with current technology: British scientists are refining the recipe for a hydrogen-based fuel that will run in existing cars and engines at the fraction of the cost of conventional petrol. Fossil fuel for cars will start to disappear very soon. Provided the companies involved can keep their staff safe. Utter ******** The EROEI on hydrogen is negative given its stong tendancy to bond with everything else, in particular oxygen. As such, it's extsaction from water is only useful in terms of speciulist applications (welding etc). Again, you have absolutely no idea what you are talking about. Point to any actual peer-reviewed, scientific evidence for hydrogen extraction that is both scalable and has a positive EROEI. We'll leave, for the monent, the ludicrous claim of being able to use in in standard ICE's Edited February 9, 2011 by tallguy Quote Link to comment Share on other sites More sharing options...
LuckyOne Posted February 9, 2011 Share Posted February 9, 2011 There are indeed such reserves in Canada LO. However, the EROEI on them is terrible, the speed of flow is appalling, the amount of water needed in their processing is truly biblical in scale (they are mostly far way from large bodies of water) and the environmental polution caused by that processing is staggering. All of which means that they would not represent a viable replacement for light sweet crude (though they would undoubtably make a fortune for those who control and own their supply) and they would also not stop oil from breaching 200 dollars per barrel. I'm sure it wont have escaped your notice that 150 dollars per barrel was the price at which our global economy went into meltdown. In addition to the tar sands in Canada which are being developed, I thought that there were also very large, undeveloped shale reserves in the Piceance Basin in Colorado. I agree that the economics and environmental impact of the extraction and transportation of sour, unconventional oil are unfavourable, especially if the price of natural gas rises to closer to its heat equivalent relative to oil. Desperate times will call for desperate measures though. Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted February 9, 2011 Share Posted February 9, 2011 The Ghawar field represents 25% of global production. Are you seriously suggesting that if this dissapeard tomorrow, the world would not be thrown into utter chaos? You don't know what you are talking about Saudi Arabia represents roughly 10% of world production , and Gwahar about half that. I suspect that you are half-remembering the figures for world exports. I'd sugest calming down a bit before posting.. peak oil sites can make you get over-doomerish, trust me on this. Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted February 9, 2011 Share Posted February 9, 2011 Based on the current hydrogen technology you are correct. However, they are not dealing with current technology: British scientists are refining the recipe for a hydrogen-based fuel that will run in existing cars and engines at the fraction of the cost of conventional petrol. Fossil fuel for cars will start to disappear very soon. Provided the companies involved can keep their staff safe. I know the story, so are you on then? Quote Link to comment Share on other sites More sharing options...
tallguy Posted February 9, 2011 Share Posted February 9, 2011 In addition to the tar sands in Canada which are being developed, I thought that there were also very large, undeveloped shale reserves in the Piceance Basin in Colorado. I agree that the economics and environmental impact of the extraction and transportation of sour, unconventional oil are unfavourable, especially if the price of natural gas rises to closer to its heat equivalent relative to oil. Desperate times will call for desperate measures though. To be frank calling such reserves "sour" is rather generous. The processinb of such reserges is akin to digging up the road outside your house and trying to process the bitchumen contained in it to a form that is burnable in a standard internal combustion engine. Quote Link to comment Share on other sites More sharing options...
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