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Saudis confirm we're NOT running out of oil - sorry envirowackos!

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Posted by: fossten

Saudi Aramco CEO says industry can add 1 trillion in reserves in 25 years

Last Update: 5:04 AM ET Sep 13, 2006

VIENNA (MarketWatch) -- The head of Saudi Arabian Oil Co., or Saudi Aramco (SOI.YY), said Wednesday technological improvements could add 1 trillion barrels of conventional oil reserves over the next 25 years.

"I'd like to challenge the industry to add 1 trillion (in conventional) reserves over the next 25 years," said Abdallah S. Jum'ah, president and chief executive of Saudi Aramco. "But I am confident.that we can meet that (target) because of technology advances," he told an industry conference here.

Jum'ah went further and said he believed a total of 4.5 trillion barrels in conventional and non-conventional oil, such as heavy - or high-sulfur crude, could be produced because of technology advances that allow for deeper and more efficient drilling. "This is an ambitious goal, but working together, I am confident our companies can and achieve that target," Jum'ah said.
"Our future energy needs...will depend on our ability to push the envelope of technology," he said.

Other technology advances such as seismic imaging have helped oil companies better pinpoint precise locations of hydrocarbons. Improved drilling techniques, like horizontal drilling, have also made it easier to improve the amount of oil extracted from oil fields.
Jum'ah was speaking on a panel discussing the role of technology in oil advances.

The oil industry globally has produced about 1 trillion barrels of oil over the past 100 years out of a current estimated 2.3 trillion barrels of economically recoverable conventional oil reserves, which are typically found in onshore areas.

Non-conventional oil, such as heavy crude found in places like Canada and Venezuela, has the potential for adding upwards of 2 trillion barrels in oil reserves.

Many oil analysts, however, are skeptical that high-cost non-conventional reserves, like heavy oil extracted from tar sands, will be economical for companies long-term. These reserves are more difficult to extract and require far more rigorous processing in order for the oil to be broken down into fuel products, like gasoline.

Jum'ah warned that excessive environmental regulations that block access to potential oil fields would hamper efforts to boost oil supplies in the future. "(Technology advances) mean nothing without access to fields," he said.

He said said the potential 4.5 trillion barrels in conventional and non-conventional oil reserves equated to 140 years of supply, based on current demand forecasts.

Posted by: TheDude

So in theory, the price of fuel should go down?

Posted by: MonsterMark

Quote:

Originally Posted by 95DevilleNS

So in theory, the price of fuel should go down?

Nope.

OPEC has already decided they like the $70/barrel they were getting used to. So now they are going to curb production to keep the price high. Only way to stop them is to have alternative sources; ie: will drill our own stuff and tell them to pound sand. When they can't sell at the high price they want, only then will they drop the price to get customers.

Posted by: fossten

Quote:

Originally Posted by 95DevilleNS

So in theory, the price of fuel should go down?

Ah. The key words of your sentence being "in theory" and "should." Yes. But it won't because of the reasons articulated by Bryan.

Posted by: RRocket

Yep..my brother the geologist owns his own oil exploration company (and he's wealthy) laughs when ever he hears about that. He said even without Saudi oil there is enough to go around....

Posted by: evillally

Quote:

Originally Posted by 95DevilleNS

So in theory, the price of fuel should go down?

Negative.

They control the output of oil- not the total supply of oil. That's why we're paying the gayly high prices for oil. It's simple supply-and-demand; coupled with highway robbery and forcible rape.

Take for example, water. Just like gasoline, you need water- but you don't have the means to pump it and bottle it. There's plenty of water to go around (Earth = pretty much water), but if I'm a rich guy with the means to pump and bottle it for sale, I can control how much I pump and then bottle for sale to keep my profits high. And if there are any pesky competitors out there who can potentially steal my business with cheaper prices, I can join with them in a group (like OPEC) to agree upon total output control so we're all happy and rich. Since you need water to survive, we get away with ass-raping you despite the near endless supply of water.

Posted by: fossten

Quote:

Originally Posted by evillally

Yep. It's exactly like the diamond industry. DeBeers controls approx. 80% of the world's diamond supply, and they discovered decades ago that there was a glut of diamonds, so they invented the "Diamonds are forever" campaign and convinced all women everywhere that the only way a man could show them they are loved is by buying them an overpriced, severely depreciating diamond, which should cost about a hundred bucks per carat based upon world supply. Biggest scam besides oil. Rubies are better value based upon resale value.