09
Feb
11

RELAX, THERE’S PLENTY OF OIL

If you heard a very loud sucking sound during the night you can rest easy. It wasn’t an army of the undead draining the blood from your body. It was just the planet Earth running out of oil, heralding the onset of global catastrophe followed by societal collapse on a scale never recorded in human history.

“The US fears that Saudi Arabia, the world’s largest crude oil exporter, may not have enough reserves to prevent oil prices escalating, confidential cables from its embassy in Riyadh show.

The cables, released by WikiLeaks, urge Washington to take seriously a warning from a senior Saudi government oil executive that the kingdom’s crude oil reserves may have been overstated by as much as 300bn barrels – nearly 40%.” – THE GUARDIAN

Imagine you live on a college campus and the only bar that will sell beer to underage students has been lying about how much Schlitz it really has on tap. Just when the absolute most people are lining up to fill their glasses they have to sheepishly admit they don’t have as much as they claimed they did and, as a result, have no choice but to jack up the price to account for the fact that they’re not going to make as much money as they’ve been telling the owners they would.

“The revelation comes as the oil price has soared in recent weeks to more than $100 a barrel on global demand and tensions in the Middle East. Many analysts expect that the Saudis and their Opec cartel partners would pump more oil if rising prices threatened to choke off demand.

However, Sadad al-Husseini, a geologist and former head of exploration at the Saudi oil monopoly Aramco, met the US consul general in Riyadh in November 2007 and told the US diplomat that Aramco’s 12.5m barrel-a-day capacity needed to keep a lid on prices could not be reached.

According to the cables, which date between 2007-09, Husseini said Saudi Arabia might reach an output of 12m barrels a day in 10 years but before then – possibly as early as 2012 – global oil production would have hit its highest point. This crunch point is known as “peak oil“. – THE GUARDIAN

In other words, before the owners of the bar can make a beer run to the local AM/PM… shit, I don’t know. I’ve taken this drunken college student analogy as far as I can. Personally, I think the best thing we can all do is just go back to bed and hope that somebody figures this all out. Like the government or Disney or somebody.

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