Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: kabar

I'm not sure anyone really believes what the Saudis say about their oil reserves. Its a major point of contention in the industry and only increases the risk associated with investments in ultra-deep water and harsh environment exploration. The Saudis maintain that uncertainty in order to manipulate the market to their long-term advantage. None of the majors wants to sink $4-5 billion in a new, high-risk facility and then have the price fall back to below $30 or even $20 a barrel as it has done many times in the last 20 years. The Saudis keep them and the capital markets guessing. Dubai has done well. Six years ago oil was over 25 percent of their economy. When I was working in Italy two years ago it was down to about 12 percent. Now, you say its down to around 6. That is a pretty impressive transformation in such a short time.


405 posted on 02/26/2006 6:56:21 AM PST by Cornpone (Who Dares Wins -- Defame Islam Today -- Tell the Truth About Mohammed)
[ Post Reply | Private Reply | To 404 | View Replies ]


To: Cornpone
Some figures on oil and gas reserves

World Crude Oil and Natural Gas Reserves, January 1, 2004

406 posted on 02/26/2006 7:31:23 AM PST by kabar
[ Post Reply | Private Reply | To 405 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson