Wednesday, September 28, 2005

The Bubble In Oil

Via The Independent, Oil reserves are double previous estimates, says Saudi

Saudi Arabia, the biggest oil producer, and Exxon Mobil, the largest oil company, yesterday declared that the world had decades' worth of oil to come, in an attempt to calm fears about the record prices experienced in recent weeks.

Forming a powerful alliance, the Saudi oil minister Ali al-Naimi said, at an industry conference in Johannesburg, that the country would soon almost double its "proven" reserve base, while Exxon's president, Rex Tillerson, spoke of 3 trillion or more barrels of oil that are yet to be recovered
.

Given this, perhaps it isn't so sensible Chasing China over the bubble in oil.

1 comment:

libertarian said...

The Saudis can't be trusted. Sustained high oil prices will make oil less relevant - something they cannot afford. They have a real stake in keeping prices reasonable.

Regarding the Exxon guy's comments - that's true, but with several riders. Take a look at this. Yes, there's 6 trillion barrels, but it gets harder and more costly from here on in.

No, we have to break our oil dependence. Take a look at 100 mpg cars, 150 mpg cars, and powerful electric cars.

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