I blog about environmental and social justice issues because I am very concerned about the health of the interdependent web of life of which we are a part.

Melting Arctic ice.......beautiful and frightening!

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Friday, February 11, 2011

“The Mirror Crack'd From Side to Side.”

Wikileaks has exposed all kinds of interesting things - including US worries about oil reserves.
http://www.guardian.co.uk/business/2011/feb/08/saudi-oil-reserves-overstated-wikileaks

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 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.….The US consul then told Washington: "While al-Husseini fundamentally contradicts the Aramco company line, he is no doomsday theorist. His pedigree, experience and outlook demand that his predictions be thoughtfully considered."
That consular officer's fears appear to be well founded:

http://www.guardian.co.uk/environment/2009/nov/09/peak-oil-international-energy-agency

The world is much closer to running out of oil than official estimates admit, according to a whistleblower at the International Energy Agency who claims it has been deliberately underplaying a looming shortage for fear of triggering panic buying. The senior official claims the US has played an influential role in encouraging the watchdog to underplay the rate of decline from existing oil fields while overplaying the chances of finding new reserves.

Looks like those peak oil theorists were correct - except they haven't been crying  "the doom has come upon us!"

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