johnhaskell

Why $140/Barrel Crude is Unsustainable

People who believe the Saudis are quickly parted from their money. The Saudis "can't find customers" for more oil because they are asking $140 for it. Supply and demand are balanced at $140.

The Saudis always lie because they don't want to tell the truth, which is:
1. Khurais is a joke- never produced more than 144kbopd and was shut in in 1981
2. They don't have any other capacity anywhere in the country
3. They've explored everywhere and found nothing that we don't already know about
4. OPEC is a joke; they are all producing at capacity just as if they were in Texas or the North Sea.

Some of us learned about trusting the Saudis on 9/11. Others have yet to learn the lesson.

So You Think Oil’s Expensive Now?

what if we have extracted half of the total extractable oil in the world? I know it's forbidden to suggest that we have reached "peak oil," or to even put the words "peak" and "oil" in the same sentence, but if that is the case you won't have to think up various James Bond scenarios to justify a higher oil price.