I dug up this NYTimes piece on oil reserves from 2005. It outlines the historic doubts insiders have had about the actual amount of the world’s reserves.
Oil industry insiders have been skeptical of Saudi Arabia’s reserves for decades. The information contained in the latest Wikileak’s US cables on SA’s reserves are not new information. What is new, however, is that the cables confirm that US diplomats, and therefore ostensibly politicians, O&G CEOs, and even OPEC, have been keeping the public in the dark about the how much oil is really left in the ground. This is the problem,
“If consumption begins to exceed production by even a small amount, the price of a barrel of oil could soar to triple-digit levels. This, in turn, could bring on a global recession, a result of exorbitant prices for transport fuels and for products that rely on petrochemicals — which is to say, almost every product on the market.” See, here and Peter Maas’s piece, below:
Oil Reserves in Doubt: The Breaking Point
August 21, 2005
By PETER MAASS
The largest oil terminal in the world, Ras Tanura, is located on the eastern coast of Saudi Arabia, along the Persian Gulf. From Ras Tanura’s control tower, you can see the classic totems of oil’s dominion — supertankers coming and going, row upon row of storage tanks and miles and miles of pipes. Ras Tanura, which I visited in June, is the funnel through which nearly 10 percent of the world’s daily supply of petroleum flows. Standing in the control tower, you are surrounded by more than 50 million barrels of oil, yet not a drop can be seen.
Read More