Saturday, January 19, 2008

Bush Questions Saudi Arabia as Swing Producer

George Bush raised eyebrows this week with a suggestion that the Saudi's may not be able to higher levels of oil output, something long suspected by analysts such as Matt Simmons. That Bush is publicly questioning their ability to increase production is significant. Here's an excerpt from the PRWeb press release:
On January 15, Terry Moran interviewed President Bush in Saudi Arabia on ABC's Nightline. When asked what he might say to the King of Saudi Arabia to lower oil prices, George Bush responded, "If they don't have a lot of additional oil to put on the market, it is hard to ask somebody to do something they may not be able to do." Nightline Presidential Interview

According to Gail Tverberg, writing as Gail the Actuary of, "If Saudi Arabia doesn't have that much additional oil to put on the market, the veracity of what Saudi Arabia has been saying about extra capacity is brought into question." More importantly, it starts raising questions about Saudi Arabia's true long-term oil production capability. Can Saudi Arabia really ramp up oil production in the future? Are the high reserves posted by Saudi Arabia and other Middle-Eastern countries really indicative of high future production capability? The Oil Drum Article

No comments: