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Producers Move to Debunk Gloomy 'Peak Oil' Forecasts
Wall Street Journal ^ | September 14, 2006 | BHUSHAN BAHREE and JEFFREY BALL

Posted on 09/14/2006 11:44:07 AM PDT by Tolerance Sucks Rocks

Leading players in the petroleum industry, including Saudi Arabia and Exxon Mobil Corp., are aggressively arguing that plenty of crude oil remains for world consumption, in an effort to counter critics who contend crude output is about to plateau.

That argument, known as peak-oil theory, has provided intellectual backing for the boom in crude prices and sowed doubts among some policy makers about crude's long-term reliability as an energy source. Such doubts, coupled with concern over sky-high prices, have added impetus to the search for oil substitutes -- including in Washington, where President Bush this year declared the U.S. "addicted to oil" and sparked a boom in interest in ethanol.

Some in the industry are keen to fight the threat posed by such fears.

Yesterday, Abdallah S. Jum'ah, chief executive of Saudi Arabian state-owned Saudi Aramco, the world's largest oil company by production, argued during a speech in Vienna that the world has more than a century's worth of crude left at current production rates. His talk followed similar remarks by a senior Exxon executive this week. Spokesmen for Exxon and Aramco said they aren't coordinating their remarks.

The belief that the Earth is running dry of oil is just one factor supporting crude prices. Oil supplies -- constrained by underinvestment when crude prices were lower -- have increased more slowly than demand, leading to a thin margin of spare pumping capacity and higher prices.

Demand has shown signs of slowing and prices have fallen from a nominal all-time high of more than $78 a barrel in July, though, adjusted for inflation, oil reached as high as $99.21 in April 1980. In New York yesterday, crude-oil futures rose 21 cents to settle at $63.97.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Foreign Affairs; Government; News/Current Events
KEYWORDS: abdallahjumah; departmentofenergy; doe; energy; energydepartment; ethanol; exxonmobil; marknolan; oil; oilreserves; peakoil; saudiarabia; saudiaramco

1 posted on 09/14/2006 11:44:11 AM PDT by Tolerance Sucks Rocks
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To: dangerbird

PING


2 posted on 09/14/2006 11:46:37 AM PDT by APRPEH (id theft info available on my profile page)
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To: Tolerance Sucks Rocks

If they keep the supply of oil high enough to avoid $80 a barrel...then the peak oil theories won't get much traction.


3 posted on 09/14/2006 11:47:46 AM PDT by P-40 (Al Qaeda was working in Iraq. They were just undocumented.)
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To: Tolerance Sucks Rocks; thackney

ping


4 posted on 09/14/2006 11:48:54 AM PDT by 100-Fold_Return (III John 2)
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To: Tolerance Sucks Rocks
I was in grad school in the early sixties. At that time it was projected that we were going to run out of oil by the year 2000. Obviously better drilling techniques, better ways to find oil, and better energy efficiency has given us more oil reserves. I would guess the same thing will occur over the next decades.
5 posted on 09/14/2006 11:52:37 AM PDT by Uncle Hal
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To: APRPEH
We wouldn't want the West to feel worried about the oil supply and accelerate their alternative energy programs, would we?
6 posted on 09/14/2006 11:54:18 AM PDT by 50sDad (ST3d: Real Star Trek 3d Chess: http://my.ohio.voyager.net/~abartmes/tactical.htm)
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To: APRPEH
We wouldn't want the West to feel worried about the oil supply and accelerate their alternative energy programs, would we?
7 posted on 09/14/2006 11:54:22 AM PDT by 50sDad (ST3d: Real Star Trek 3d Chess: http://my.ohio.voyager.net/~abartmes/tactical.htm)
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To: 50sDad

That's exactly the "logic" that propels this theory.


8 posted on 09/14/2006 11:55:46 AM PDT by sarasota
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To: 50sDad

I thought "peak-oil" was an ADM created conspiracy...


9 posted on 09/14/2006 12:00:30 PM PDT by APRPEH (id theft info available on my profile page)
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To: 50sDad

We all know we need to find alternative fuels.

We also know we wont do that as long as Fossil Fuel is cheap enough to keep us moving.

Every now and then someone finds a new exciting way that will put oil ouf of business. so far none of them have turned out to be more than expensive ideas.


10 posted on 09/14/2006 12:02:40 PM PDT by sgtbono2002 (The fourth estate is a fifth column.)
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To: sgtbono2002

We all know we need to find alternative fuels.


Why?


11 posted on 09/14/2006 12:06:22 PM PDT by edcoil (Reality doesn't say much - doesn't need too)
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To: Tolerance Sucks Rocks

Usually the peak oil threads are introduced on an oil price increase, If they are introduced on an oil price decrease they make no sense at all. For oil price decreases we should come up with another killer bird flu megavolcano asteroid kind of thread.


12 posted on 09/14/2006 12:09:46 PM PDT by RightWhale (Repeal the law of the excluded middle)
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To: sgtbono2002

necessity has always being the mother of invention, and we do it much better than any other nation on earth, OPEC must be shaking in their sandals with that knowledge, and that is the reason for what is taking place now.
That and the vast petroleun field in our hemisphere.


13 posted on 09/14/2006 12:12:06 PM PDT by pennboricua
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To: APRPEH

http://www.dieoff.org

Start with a base of Amory Lovins. Throw in 2 cups of Margaret Sanger. Add dashes of Lenin, Hitler, Mao, and Pol Pot. Mix in 1 Tbsp of Lyndon Larouche. Stir.


14 posted on 09/14/2006 12:24:03 PM PDT by GOP_1900AD (Stomping on "PC," destroying the Left, and smoking out faux "conservatives" - Take Back The GOP!)
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To: 100-Fold_Return
Enhanced oil recovery of existing fields as well as new sources such as oil sands, oil shale and very deep reservoirs will prove this correct.
15 posted on 09/14/2006 12:30:14 PM PDT by thackney (life is fragile, handle with prayer)
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To: RightWhale

How about just a general "We Are Doomed" kinda thread? Maybe one of Jerome Corsi's "NAFTA Superhighway" articles?


16 posted on 09/14/2006 12:53:41 PM PDT by Tolerance Sucks Rocks (Going partly violently to the thing 24-7!)
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To: edcoil

Mostly because we need energy independence. We dont want to go on being subject to the whims of OPEC and crazies like Venezuelan President and Ahmadinejhad. We dont need to depend on fuel from as far away as the Middle east.
Also one day gasoline reserves may indeed be low and the lower they get the more expensive fuel will be.


17 posted on 09/14/2006 1:22:09 PM PDT by sgtbono2002 (The fourth estate is a fifth column.)
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To: sgtbono2002

OK, we agree on our energy independence. The USA has more known oil reserves then the middle east. We don't "need" to import oil from anywhere - we "have" to import because our own government will not us drill for it.

BTW, we do export oil as well this is mainly due to the balance of trade issues and numbers that get confusing and boring if discussed for longer then say a nano second.


18 posted on 09/14/2006 1:34:58 PM PDT by edcoil (Reality doesn't say much - doesn't need too)
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To: Tolerance Sucks Rocks

Corsi has hold of eternal truth, regardless of whether gold is up or down 10 any given time. Always good.


19 posted on 09/14/2006 2:06:24 PM PDT by RightWhale (Repeal the law of the excluded middle)
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