WikiLeaks cables: Saudi Arabia cannot pump enough oil to keep a lid on prices

The Guardian ^ | 2/8/2011 | John Vidal

[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".

[Sequoyah101]

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.

[Nervous Tick]

>> 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.

[Nervous Tick]

>> WTH is wrong with America’s common sense?

“Sierra Club”

[ErnstStavroBlofeld]

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?

[Joe Boucher]

Raise hell,
Texan.

[nascarnation]

you’re mistaken if you believe that high oil prices would distress President Obama.

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.

[barb-tex]

The only Food for crude is the Ethanol Scam. Saudi Arabia exports wheat and several other food stuffs. Don't forget at 10% EtOH there is an 8% surtax due to decreased heat content.
As the enviro wackos and ADM increase the %, the tax will increase.

[RayChuang88]

If we get US$4/gallon gas this summer, Obama is FINISHED as President--he will suffer the same fate as James Earl Carter.

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."

[mewykwistmas]

“they will just tax you at the pump”

---

Nothing beats 1.60 EUR /litter gas like in Europe (or ~ $8 a gallon). And that’s with oil at $80-$100 a barrel

[nascarnation]

Damned idiot Americans should use food as a weapon. A bad approach I'd say. Far better to develop the numerous energy resources available in the US. Nukes and nat gas for sure. Plus full bore drilling program.

[Henry Hnyellar]

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, hasn’t had an energy policy.* And as a consequence we’ve been consuming energy as if it’s infinite. We now know that our demand is badly outstripping supply with China and India growing as rapidly as they are.

CNBC’s 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…

[Cobra64]

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."

Wanna bet?

[unkus]

Thanks.

[Cobra64]

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."

Wanna bet? Libs don't care about national security.

[Sequoyah101]

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.

Don’t panic.

[Red Badger]

http://146.142.4.24/cgi-bin/cpicalc.pl

Better one...

[unkus]

Wow. That’s scary.

[Red Badger]

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.....

[Flavius]

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?

i dont

http://www.eslhandouts.com/materials/cars_environment.pdf

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

no more

[unkus]

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.