Skip to comments.WikiLeaks cables: Saudi Arabia cannot pump enough oil to keep a lid on prices
Posted on 02/08/2011 6:07:47 PM PST by ErnstStavroBlofeld
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%.
The revelation comes as the oil price has soared in recent weeks to more than $100 a barrel on global demand and tensions in the Middle East. Many analysts expect that the Saudis and their Opec cartel partners would pump more oil if rising prices threatened to choke off demand.
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".
(Excerpt) Read more at guardian.co.uk ...
you’re mistaken if you believe that high oil prices would distress President Obama. He has previously stated he does not mind high prices. What matters to him is how rapid the prices rise.
$4/gal gas by Memorial Day.
Happy days are here again,
the skies above are clear again.
wish someone would actually try to fix the problem
asol figures that the natural gas needed for a gallon of diesel, plus operating costs, comes to about $1.50 a gallon. In comparison, a gallon of diesel made from crude oil now costs more than $2, even before refining, and many forecasts are for the price of oil to go higher.
Volvos 124-MPG Diesel-Electric To Debut In Geneva
meanwhile lets just go back to regular bull.
Brother, can you spare a dime?
If he cared we’d be drilling for our own.
$5 by the Fourth of July....
Dime? Heck, with inflation, that should be a DOLLAR by now!....
Right. No mention of market speculators.
I wonder if the Wikileaks guys went long oil futures just before releasing this little tidbit.
VW, on Gizmag.com, has that beat w/ a 267 MPG coupe.
Why would the U.S counsel lie on a diplomatic cable to the State Department? Maybe Saudi Arabia is literally running out gas
Damned idiot Americans should use food as a weapon.
Let the mid east retards starve.
>> “Saudi Arabia cannot pump enough oil to keep a lid on prices” <<
But Bernanke can print enough monopoly money to put a solid floor under them! (and gold and silver...)
We will only move when our back is really against the wall. But a mass adoption of this will drastically lower oil prices
>> “Right. No mention of market speculators.” <<
Standard argument of the “give me something for nothing” liberal whinner.
Speculators have to have a basis for speculation, or it falls flat. Study Laffer.
You are correct; but if he gets his $4 gas,,, he won’t stand a chance in 2012. not that he should stand a chance anyway.
Take steps to increse your mpg. I did. Mods have already paid for themselves.
K&N air filter
High perf. muffler
High perf. tires (50psi)
My PT gets great mileage. AND I just got a job 3.4 miles from home. (after 2 yrs. off)
they will just tax you at the pump
but will get an order of cheese nachos with every bawl game
Yet, we convert food crops to alcohol at a time where there are food shortages, we don't build nuclear power plants, we prevent oil and gas exploration and drilling, and we haven't built a new oil refinery since 1975-1976.
WTH is wrong with America's common sense? If we developed our resources, we could be the NEW Saudi Arabia. The Arabs would be pounding sand. And, the Environazis would be absolutely suicidal [this is a good thing].
I’m sure this will cause panic but it is not new news. Rumor, speculation and reports have been around about this for a long time.
It may be true, it may not be. Oil will eventually be depleted.
>> Damned idiot Americans should use food as a weapon.
Ladies and gents, we have a winner right here.
They can eat sand, dates and camel poop, and wash it down with crude.
>> WTH is wrong with America’s common sense?
But this information is coming from the U.S. Counsel in Saudi Arabia. Why would lie in reporting to the State Department? What does he have to gain?
I can't wait to see Baraq campaigning on a platform of 4 more years of 10% unemployment and $4 gas. I'm sure for campaign genius Axlegrease it will be a lot of fun.
Watch for the largest expansion in oil exploration in the USA in 40+ years when Obama is replaced by a new President that will emphasize increased domestic production, all done in the name of "national security."
“they will just tax you at the pump”
Exactly. He said this in 2008.
Barack Obama: I think that we have been slow to move in a better direction when it comes to energy usage. And the president, frankly, hasnt had an energy policy.* And as a consequence weve been consuming energy as if its infinite. We now know that our demand is badly outstripping supply with China and India growing as rapidly as they are.
CNBCs John Harwood: So could the (high) oil prices help us?
Barack Obama: I think that I would have preferred a gradual adjustment. The fact that this is such a shock to American pocketbooks is not a good thing. But if we take some steps right now to help people make the adjustment, first of all by putting more money in their pockets, but also by encouraging the market to adapt to these new circumstances more rapidly, particularly U.S. automakers
Wanna bet? Libs don't care about national security.
Gosh, I don’t know. Maybe a long term strategy to drive up the price of oil? The time value of disinformation should be pretty high.
Wow. That’s scary.
It seems to be correct. I put in 49¢ for a gallon of milk in 1971 and it came up right for 2010, $2.64.....
25 kilometers = 15.5342798 miles
- from 8 km a day per person in
western Europe in 1965 to 25 km a day in 1995. This
you drive 15 miles back and fort to work?
you can spit acros most “countries “ in europe
there is no where to drive to even if you wanted to youd be driving into something that was knocked down by turks , crusades german tanks...
you use to be able to go for a family vacation with a car in states
It does seem to be correct. I did the same with gas @.49 in 1972 and it came out @ $3.08. I remember people moaning when gas went to .49/gal. then. Thanks again.
If the Saudi Oil people told the US Consulate then he/she is reporting the State Department, why lie? So far, Wikileaks has turned out correct of backing up circumstancial evidence.
Did I say the State Dept. lied?
The sheer importance of this ONE Wikileak cannot be over-emphasized! If what it is saying is the case (and there is no reason for it not to be), then what we are seeing is basically peak oil. The long-term strategic impact of that, should it be the case, is not the best of news, and unfortunately it would progressively get bad before it got better. There are so many things we take for granted. So many things.
From what I just heard on FOX, the situation is more likely that Saudi Arabia will not, rather than cannot, pump enough oil to keep a lid on prices. Bill Hemmer had a FOX analyst on who said that even if the Saudis have only over a 100 yr supply of oil reserves instead of 200 yrs, they are finding more oil all the time. He said it was production, not reserves that should be the focus of the discussion. Also, the US has plenty of oil to take care of our country and that is where we should be getting our oil. Drill here, now. It is obvious to most of us that there is a conspiracy to keep prices high for the benefit of any number of individuals/countries who want to be and stay rich. It is equally obvious that there is something radically wrong with our govt unnecessarily and deliberately diverting food crops to make artificial fuel when doing so has increased food prices around the world. We are being sand bagged by our own country and it will not stop until the voters get new management, from state govt to federal govt.
The Bakken field is being drilled and produced. It has been for several years. North Dakota is already the 4th top oil producing state and will soon be 3rd.
The evil Enviros want to bring America back to some kind of pre-Industrial Revolution nirvana. They really have NO clue at all what that would mean, especially since most of them live in rat high rises in large metro areas. They are a bunch of Luddites railing against technology and progress that allows people to live the comfortable lives we do.
True, but don't confuse the total oil in place with economically, technically produceable reserves. What is being produced now is layers of oil between the actual shale, not the shale itself.
However, Interior is withholding leases or permits for even more development.
Not true. The Bakken and underlying South Fork are mostly on private lands and not subject to the Department of the Interior like ANWR for example.
Only Texas, Louisiana and Oklahoma have more active rigs than North Dakota at this time.
who is this anonymous source?
is this just another price inflating manipulation story?