Saudis' cutbacks raise oil concerns

[IDemo]

Apologies, registration required. Mods, can articles be posted in their entirety in cases like this?

Some question country's reserves

By MICHAEL E. KANELL
The Atlanta Journal-Constitution
Published on: 02/20/07

Drivers who remember those $3-a-gallon days of the past two years, be warned.

Oil prices are up and the world's biggest producer has been cutting back — a recipe for those prices to keep on climbing.

But whether they are still arching skyward by the time summer driving starts depends largely on just why Saudi Arabia has been pumping less crude.

No one outside the kingdom really knows for sure, but some oil experts think the Saudis' oil reserves may not support increased production.

http://www.ajc.com/business/content/business/stories/2007/02/20/0220bizoil.html

[no_hypocrisy]

1. I can understand somewhat the reason for increasing the price as

the M3 has not been reported for 12 months (how many dollars are in circulation). God knows how many dollars have been introduced (read, flooded) into the market. Saudis recognize covert inflation and they aren't receiving the true value for their product.

[PLF]

2. In other words, gas prices are going to keep going up.

If what you are saying about "covert inflation" is true.

the other scenario would be that the Saudis don't have as much oil as they pretend to.

[no_hypocrisy]

7. Or both. *Shutter!*

[itsmesgd]

3. Gas is running out

Why are we about to invade Iran, for their oil? Iran has begun a gas ration program. They know that gas will not last forever at the rate that it is being used.
I think that Brazil had the right idea...1. get themselves energy sufficient, 2. develope alternatives to replace petroleum, 3. sell what gas you do drill domestically to stupid countries that have yet to see the light (US).

[IDemo]

4. Regardless of the condition of the dollar, very likely Saudi crude is declining

Matthew R. Simmons, president of Simmons and Company International, a specialized energy investment banking firm, contends that this is not likely to happen. He argues that Saudi Arabia's oil fields now are in decline, that the country will not be able to satisfy the world's thirst for oil in coming years and that its capacity will not climb much higher than its current capacity of 10mbd. Considering the growth in demand, this could easily spark a global energy crisis.

and -- http://www.newcolonist.com/ghawar.html

[roamer65]

5. Ghawar is their largest field by far...

and I have heard that the mix is about 50% oil, 50% seawater now. They use seawater to try to drive as much oil as possible out of the rock. Maybe the reason were so "hot after" Iraq is that Saudis have released the true data to people like * and Mr. Roboto.

[IDemo]

6. seven million barrels of seawater per day

with more planned: http://www.ameinfo.com/106551.html