The Saudi oil shock is here part II
Midwest Voices contributing columnist: Robert Anderson
What’s becoming increasingly apparent- not just through Wikileaks- but through actual oil production stats is the Saudis aren’t credible with their claims. Aren’t journalists supposed to verify such important contentions that are pivotal to the health of the entire western economy? Oh, that’s right. They can’t. Only the Saudis and ARAMCO (the Saudi national oil company) know. OK. If you can’t verify at least quit parroting the disinformation.
Its becoming increasingly evident that the Saudis can’t produce more. There’s no spare capacity. For decades, they’ve claimed they can produce 15 ,20, 25 million barrels/day. Our Department of Energy EIA division would always regurgitate these false claims. They’re totally bogus. We’ve been duped by Mideast oil producers and major oil. Can you believe it? You’d better. Too bad its too late to rectify.
To support this scary contention let’s go back to 2008, the last time oil prices moved up past $100 / barrel. We got the same false reassurances from the Saudis that there’s no problem and plenty of spare capacity. In truth, it was their 1 million barrel / day drop in exports 2005 – 2007 that helped spawn the crisis. Of course, our crisis is their windfall. And we now know via Wikileaks that a Saudi windfall is also a al-Qaeda and Taliban windfall.
Now that 2008 is behind us, lets go back and see what actually happened with Saudi output since its déjà vu all over again. Saudi Arabia oil output peaked in 2005, and although there’s been a few fits and starts, the trend is downward.
And that Bloomberg report that came out Saturday which indicated Saudi December exports (not output) dropped down to 6 million bls / day lends loads of credibility to the future downslope projections on the chart above.
If you want to read more on the source of this chart, including peer review assessmernts of this dire Saudi oil depletion situation, here’s the link:
Batten down the hatches. We’ve been duped. And the overstatement of oil production potential was willfull, deliberate and duplicitous.