May 14, 2013

The Energy Czar on the Future Saudi Oil Production Deficit

Saudi Arabia is one of the few countries in the world that hasn't hit Peak Oil production. What may be a warning sign of the Saudi's hitting Peak Oil, they are saying they will not be able to raise oil production up to 15 million barrels per day by 2020. They have to do this in order to offset their rising domestic oil consumption. The Saudi's oil use is expected to grow from 3 million barrels per day to 5 by 2020. This cheap easy Saudi oil will have to be replaced by the expensive fracking tight oil in the states and the Tar Sands oil in Canada. Once again, Peak Oil has nothing to do with running out of oil. It's about having less of the oil our economy can afford to burn so we can still grow.