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Red Alert: the Saudi Princes have announced the arrival of Peak Oil

News Type: Event — Seeded on Sat Jul 12, 2008 12:26 AM EDT
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The BusinessWeek story cited below, along with King Abdullah's April announcement that they will not be opening new fields, provides evidence that we are near — or perhaps even at — Peak Oil.

It may be political peaking;: perhaps the Saudi's could invest to increase production, but choose not to (an obviously sensible decision). It may be geological peaking, if the Saudi's are unable to increase production. But whether geological or political peaking, the long-discussed event may be starting now.
Since America prefers to base its energy policy on inspired guesses, nobody has modeled the possible outcomes. A few million dollars for a multi-disciplinary team to gather and analyze data would have better prepared us for this moment.

So we have no plans (hope is not a plan). We have no foundation of comprehensive data and research on which to make plans. We can only speculate at what happens next. If we are near or at peak oil, the next decade or so probably will not be pretty (that means painful, but not the end of civilization). We can take solace in the knowledge that through our fecklessness we have earned what we are about to receive.

Sooner or later, everyone sits down to a banquet of consequences. Robert Louis Stevenson, perhaps apocryphal

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{"commentId":2171428,"authorDomain":"nearing"}
nearing

Here we go....

{"commentId":2171428,"threadId":"311448","contentId":"1659025","authorDomain":"nearing"}
  • 4 votes
Reply#1 - Sat Jul 12, 2008 12:27 AM EDT
{"commentId":2171440,"authorDomain":"gumwars"}
Gumwars

You knew this was coming...

{"commentId":2171440,"threadId":"311448","contentId":"1659025","authorDomain":"gumwars"}
  • 3 votes
#1.1 - Sat Jul 12, 2008 12:31 AM EDT
{"commentId":2172612,"authorDomain":"gpnavonod"}
gpnavonod
You knew this was coming...

The inevitable always does..........Doesn't it?

Very compelling .....

{"commentId":2172612,"threadId":"311448","contentId":"1659025","authorDomain":"gpnavonod"}
  • 4 votes
#1.2 - Sat Jul 12, 2008 10:11 AM EDT
Reply
{"commentId":2171657,"authorDomain":"look-upon-me"}
look-upon-me

This could simply mean that Saudi Arabia has no new oil fields left that are cost effective to open up.

{"commentId":2171657,"threadId":"311448","contentId":"1659025","authorDomain":"look-upon-me"}
  • 1 vote
Reply#2 - Sat Jul 12, 2008 1:48 AM EDT
{"commentId":2171877,"authorDomain":"JoulesBeef"}
JoulesBeef

lol at 150 a barrel how much more cost effective do you need it.
tar sands and shale is profitable at that number.

{"commentId":2171877,"threadId":"311448","contentId":"1659025","authorDomain":"JoulesBeef"}
  • 3 votes
#2.1 - Sat Jul 12, 2008 4:09 AM EDT
Reply
{"commentId":2171783,"authorDomain":"crazymail"}
heyheynow

Glad I filled up today!!! Wipes forehead!!!!

{"commentId":2171783,"threadId":"311448","contentId":"1659025","authorDomain":"crazymail"}
  • 1 vote
Reply#3 - Sat Jul 12, 2008 2:58 AM EDT
{"commentId":2171843,"authorDomain":"gilemrys"}
Trog-221687

Something I have been thinking about for many years is whether big oil will give a definitive warning that the oil is almost gone (which is inevitable) or cling to greed and watch the chaos ensue.
My faith in humanity is severely lacking.

{"commentId":2171843,"threadId":"311448","contentId":"1659025","authorDomain":"gilemrys"}
  • 2 votes
Reply#4 - Sat Jul 12, 2008 3:53 AM EDT
{"commentId":2171871,"authorDomain":"TomJoad"}
Tom Joad

Amen to that, friend!

{"commentId":2171871,"threadId":"311448","contentId":"1659025","authorDomain":"TomJoad"}
  • 1 vote
#4.1 - Sat Jul 12, 2008 4:07 AM EDT
{"commentId":2174678,"authorDomain":"energynet"}
energynet

Give us a warning?

In 1989 three activists working on peak oil issues (1989) won a debate with a top Chevron PR man, getting him to acknowledge that they were dinosaurs... If only we had video back then...

Here's what almost happened in 2001.

A small unknown company called Dynergy was in the final stages of merging with Enron when the company went belly up. Dynergy was a front for Chevron Texico.

Enron's own internal planning process (the reason why Clinton gave them and only them a waiver on the 1935 Holding company act) showed them on the way to becoming the largest company in the world by 2003. What??? yes, they had been setup to become the super holding company for the AT&T of electric energy in the U.S.

In other words, Dynergy was going to be the oil company's inside track on buying into the electric market.

{"commentId":2174678,"threadId":"311448","contentId":"1659025","authorDomain":"energynet"}
  • 4 votes
#4.2 - Sat Jul 12, 2008 5:06 PM EDT
{"commentId":2177063,"authorDomain":"gilemrys"}
Trog-221687

Source? You've got me curious.

{"commentId":2177063,"threadId":"311448","contentId":"1659025","authorDomain":"gilemrys"}
  • 1 vote
#4.3 - Sun Jul 13, 2008 12:58 AM EDT
Reply
{"commentId":2171971,"authorDomain":"Ohnestaeb"}
oHnEsTaEb86

I don't see this as a definitive sign that the end is near, but as a sign saying "Don't be surprised if you see a dead end." If it's worth anything, we've beat out the most liberal estimations to when oil will peak

{"commentId":2171971,"threadId":"311448","contentId":"1659025","authorDomain":"Ohnestaeb"}
  • 1 vote
Reply#5 - Sat Jul 12, 2008 5:11 AM EDT
{"commentId":2172120,"authorDomain":"grantmcmillen"}
cyan60

cool then we can start tapping our own reserves and selling it to the world at $500 a barrel. national debt gone:)

seriously we should have been looking for alternatives years ago. put more research into solar and hydrogen. but big oil and our government stopped any attempts to do so. and still are. was too easy to pocket big money and live like fat cats.

now keep in mind your talking about saudi's maybe they are at about peak that leaves iran iraq with the big reserves left. guess thats a good reason to go to war.

{"commentId":2172120,"threadId":"311448","contentId":"1659025","authorDomain":"grantmcmillen"}
  • 1 vote
Reply#6 - Sat Jul 12, 2008 7:16 AM EDT
{"commentId":2173361,"authorDomain":"stevehouse"}
SteveHouse

Not to mention the electric car, killed by GM.

This must be why they've been predicting $5/gallon gas by the end of the summer.

{"commentId":2173361,"threadId":"311448","contentId":"1659025","authorDomain":"stevehouse"}
  • 3 votes
#6.1 - Sat Jul 12, 2008 12:46 PM EDT
{"commentId":2173568,"authorDomain":"gatorhater"}
gatorhater
now keep in mind your talking about saudi's maybe they are at about peak that leaves iran iraq with the big reserves left. guess thats a good reason to go to war.

As far back as 1999, Cheney talked about peak oil and the need for a middle east solution. That was interpreted in 1999, as referring to the oil reserves of Iraq and especially Iran. How to get into each country and build oil infrastructure was the only remaining question to be resolved.

If I were a country that is receiving $150 million per day of oil revenues, ($150@bbl X 1 million bbls), why would I invest in more oil infrastructure if 10 years from now I could make the same money without it ($300@bbl X 500,000 bbls)? The same applies to refineries, pipelines, etc.

The only way to cut the price of oil, is to pump more or use less.

If you pump more oil, the price will come down. We can chatter about drilling here, there and everywhere, but what company or country is really willing to do that without assessing the risk to profits.? Especially, when so many alternative methods of energy are being developed? It will only be done in order to keep these technologies at bay and profits increasing.

It's time to s@!t or get off the pot. I don't see the necessary willpower, for either.

{"commentId":2173568,"threadId":"311448","contentId":"1659025","authorDomain":"gatorhater"}
  • 4 votes
#6.2 - Sat Jul 12, 2008 1:19 PM EDT
{"commentId":2179903,"authorDomain":"gpnavonod"}
gpnavonod

So we have no plans (hope is not a plan). We have no foundation of comprehensive data and research on which to make plans. We can only speculate at what happens next. If we are near or at peak oil, the next decade or so probably will not be pretty (that means painful, but not the end of civilization). We can take solace in the knowledge that through our fecklessness we have earned what we are about to receive

Because we have a bunch of "day trippers" running the country for decades.... Martini anyone?

{"commentId":2179903,"threadId":"311448","contentId":"1659025","authorDomain":"gpnavonod"}
    #6.3 - Sun Jul 13, 2008 3:45 PM EDT
    {"commentId":2180136,"authorDomain":"nearing"}
    nearing

    gatorhater:

    If you pump more oil, the price will come down. We can chatter about drilling here, there and everywhere, but what company or country is really willing to do that without assessing the risk to profits.? Especially, when so many alternative methods of energy are being developed? It will only be done in order to keep these technologies at bay and profits increasing.

    Excellent point.

    {"commentId":2180136,"threadId":"311448","contentId":"1659025","authorDomain":"nearing"}
    • 3 votes
    #6.4 - Sun Jul 13, 2008 4:34 PM EDT
    Reply
    {"commentId":2198182,"authorDomain":"nearing"}
    nearing

    one for the tracker

    {"commentId":2198182,"threadId":"311448","contentId":"1659025","authorDomain":"nearing"}
      Reply#7 - Tue Jul 15, 2008 3:04 PM EDT
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