Saudis fret as global thirst for oil grows.

Discussion in 'In the News' started by xcel, Apr 4, 2006.

  1. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Petroleum superpower keeps pace with demand, but wonders how long its vast resources will last.

    Jim Krane - Associated Press - 04/03/2006

    Hasan Jamali / Associated Press

    DAMMAM, Saudi Arabia - The world's only oil superpower boosted output last month, launching a pair of projects that are part of a massive $55 billion endeavor to keep pace with the world's ever-intensifying thirst for oil.

    But demand for the world's premiere source of energy is rising so fast - by around 2 million barrels a day each year - that even Saudi Arabia's vast resources will be unable to cope without drastic help, oil executives and analysts say.

    Even the Saudis, who control over a quarter of the world's known oil, are calling for relief from relentless consumption.

    "The current out-of-control demand is not good for us," Ghazi Al-Rawi, head of private equity at Gulf One Investment Bank, said in a recent interview.

    "When you have this kind of demand, you're forced to supply beyond the optimal rate. That's not a positive thing."

    "We need some help," said Nawaf Obaid, a Saudi petroleum adviser with close ties to the government.

    If such help doesn't materialize and Saudi Arabia maxes its output - cranking out perhaps 35 percent more oil than it does today - the kingdom's proven reserves might only sustain demand for a few decades before starting to dwindle, al-Husseini said.
    Saudis worry that consumer demand could overwhelm the slow progress in bringing new energies to market.

    "If this continues, you'll have demand outstripping supply over the next five years by a wide margin," Obaid said.
  2. tbaleno

    tbaleno Well-Known Member

    Don't worry about us al-Husseini. We will adapt and devote more to research if needed.

    I think their major concern is that they haven't been able to ramp up the price of oil fast enough so the more they pump now at these lower prices the less they have later when prices are higher.
  3. Chuck

    Chuck just the messenger

    Part of the concern is the Saudis and everyone else is not sure how much proven reserves are under the ground.

    The people out on the forums that think us hypermilers are crazy need to take that article seriously
  4. philmcneal

    philmcneal Has it been 10 years? Wow

    ^ i so agree with you, even my mechanic makes jokes about me trying to save some gas. "hey you sure you want me to top up that windsheild fluid? Don't want any extra weight in there haha."
  5. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi Guys:

    ___I really would hate to be one of us to say “I told you so” as it is all of our own funerals. Death is a bit harsh but economic chaos could be the order of the day? Watch ANWR open up without nearly a squeak out of congress and Oil Shale throughout the Green River basin begin to be extracted at a crazy rate once we see $90 + per BBl! I guess you could call that hope but what a mess $90 +/BBl will be for most :(

    ___Good Luck


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