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Wall Street Banks and hedge funds speculating in oil futures are once again driving oil prices higher despite the fact that there is no demand surge. The latest bogey of Peak Oil was raised through a badly interpreted Wiki leaks document that stated that Saudi reserves may be 40 % lesser than originally stated. It was fortunate that the person who was supposed to have made that statement promptly denied making such a statement and clarified that extractable reserves are separate from the discoveries and are conservatively stated by Saudi Aramco at 270 billion barrels ,but indeed could be higher due to new horizontal drilling technology.
As a matter of fact oil supply position has been never so good after the giant Sheba and Al Khurais oil fields have been commissioned by Saudi Arabia . The 40 billion barrel of extractable reserves are still not being utilized thanks to the excess of supply over demand. The Saudi's whose stated extractable reserves were 270 billion barrels as against the discovered oil basin reserve of 900 billion barrels have just added an additional 40 billion barrels of oil due to this new drilling technologies. Sheba reserves was discovered 30 years ago but even 5 years back the cost of drilling was not viable. Today it is one of the cheapest source of Saudi oil and can produce 1.25million barrels per day.
A careful look at the data available before the advent of horizontal drilling technology and the sea water pumping technology at the two plants and the capacities added due to these 2 plants tells you how Peak Oil Theory has been just been pushed back by modern technological innovation and how this technology has actually increased the extractable reserves of Saudi Arabia by over 35% on a conservative basis.
Wall Street Banks and hedge funds speculating in oil futures are once again driving oil prices higher despite the fact that there is no demand surge. The latest bogey of Peak Oil was raised through a badly interpreted Wiki leaks document that stated that Saudi reserves may be 40 % lesser than originally stated. It was fortunate that the person who was supposed to have made that statement promptly denied making such a statement and clarified that extractable reserves are separate from the discoveries and are conservatively stated by Saudi Aramco at 270 billion barrels ,but indeed could be higher due to new horizontal drilling technology.
As a matter of fact oil supply position has been never so good after the giant Sheba and Al Khurais oil fields have been commissioned by Saudi Arabia . The 40 billion barrel of extractable reserves are still not being utilized thanks to the excess of supply over demand. The Saudi's whose stated extractable reserves were 270 billion barrels as against the discovered oil basin reserve of 900 billion barrels have just added an additional 40 billion barrels of oil due to this new drilling technologies. Sheba reserves was discovered 30 years ago but even 5 years back the cost of drilling was not viable. Today it is one of the cheapest source of Saudi oil and can produce 1.25million barrels per day.
A careful look at the data available before the advent of horizontal drilling technology and the sea water pumping technology at the two plants and the capacities added due to these 2 plants tells you how Peak Oil Theory has been just been pushed back by modern technological innovation and how this technology has actually increased the extractable reserves of Saudi Arabia by over 35% on a conservative basis.
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