World Oil Capacity to Peak in 2010 Says Petrobras CEO

[4dsc]

Mr. Gabrielli, the CEO of Petrobras, gave a presentation in December 2009 in which he shows world oil capacity, including biofuels, peaking in 2010 due to oil capacity additions from new projects being unable to offset world oil decline rates.

Gabrielli states in his presentation that the world needs oil volumes the equivalent of one Saudi Arabia every two years to offset future world oil decline rates.



I wonder how long the world will ignore this problem?

[TxRider]

1. How long will the word ignore it? Simple...

The world will ignore it until prices rise significantly and remain high.

[Vinnie From Indy]

2. LOL!

Mr. Gabrielli's statement after translation reads, "bend over world, you're about to get screwed"!

Seriously, how could anyone know the true cost of oil when the markets are so opaque?

I would offer that when the economies of the world begin to fall deeper into the abyss, things might change. Pain focuses the mind.

[hunter]

3. I'm thinking we are at or past peak and markets are not so "opaque" anymore.

The decline of the world economy and the decline of oil production are going to be tightly coupled all the way down the side of the ditch.

Every time the economy picks up the limited supply of oil is going to smack it down again, and it's going to be that way for a long, long time. Prices may bounce all over the place.

If that's the case, if it becomes clear that suppliers cannot meet demand no matter what they might claim as reserves and capacity, then the market is entirely transparent.

[Statistical]

4. When oil was $146 a barrel and Saudia Arabia couldn't raise production

That was my transparent moment. Everyone realized it was a bubble and oil was going back down to $100.

If you know that then you pump all you possibly can and sell it at 46% premium. Saudia Arabia's output remained flat.

Proof positive in my book that at least Saudia Arabia peaked in 2008.