Have Saudi's Overpromised What They Can Pump? - GreenHybrid

Delta Flyer · #1 (**permalink**) 06-15-2005, 12:03 PM

Quote:

Originally Posted by Story

Despite the recent surge in prices, demand for oil continues to grow — especially from rapidly developing economies in China and India. Global demand is currently about 84 million barrels per day and growing by about 2 to 3 percent a year, which means another 2 million barrels a day or so will be needed by next year. If demand growth continues, even higher levels of daily production will be needed to meet that demand. If production fails to meet demand, oil-consuming nations face the prospect of even higher oil prices, shortages or both.

MSNBC Story

Article goes on to state Saudi's may be overoptismic that pumping water into existing reserves, etc. will maintain current production.

RichC · #2 (**permalink**) 06-15-2005, 09:44 PM

Quote:

Originally Posted by Delta Flyer

MSNBC Story

Article goes on to state Saudi's may be overoptismic that pumping water into existing reserves, etc. will maintain current production.

Matt Simmons has a good book out on exactly that subject called Twilight in the Desert. Its another peak oil style book that believes the reserves are over estimated in Saudi Arabia and concludes that the hushing of 'numbers' from the field tests since 1982 make it even more difficult to calculate. The auther, Matt Simmons, is a 35 years as an oil investment banker and questions the Saudis comment that they can continue to pump oil at 15 million barrels per day for 75 years. He also believes that the 'super straw' method of extraction and water injection of the wells will continue to cause collapse in the extraction system. His final comment is that we are past "peak oil" and that it is a good environment for alternatives as we begin to conclude that the Saudi quoted estimates are not accurate.