Ex-Saudi Oil Exec Criticizes US Govt Oil Supply Forecast

“The whole industry laughs at it,” said Sadad Al-Husseini, former executive
vice president of exploration and production at Aramco, the world’s biggest oil
company.
10-27 11:08: Ex-Saudi Oil Exec Criticizes US Govt Oil Supply Forecast
DJ Ex-Saudi Oil Exec Criticizes US Govt Oil Supply Forecast

LONDON (Dow Jones)–The former head of Saudi Arabian Oil Co.’s (SOI.YY) oil
exploration Wednesday sharply criticized U.S. government oil supply
projections.

“The whole industry laughs at it,” said Sadad Al-Husseini, former executive
vice president of exploration and production at Aramco, the world’s biggest oil
company.

The Energy Information Agency, statistical arm of the U.S. Department of
Energy, projects crude from the Organization of Petroleum Exporting Countries
oil will increase 90% in 20 years and that demand for Saudi oil will jump 137%,
to about 22 million barrels day.

Saudi Arabia’s own models forecast top production for the same time at a much
lower 15 million b/d. Saudi Arabia now produces some 9.5 million b/d.

“They are perhaps unaware of how unrealistic these numbers are,” Al-Husseini
said.

OPEC supplies half of the world’s oil exports.

The EIA’s predictions assume very low oil prices. Al-Husseini said oil will
be much more expensive, encouraging greater fuel economy and the development of
alternative fuels that will shrink reliance on oil.

He also questioned U.S. projections on future oil finds and said declining
production in existing fields will increase.

“Should we be worried? Yes,” he said.

Billions of barrels of oil calculated to be part of world reserves by the
U.S. government include nearly unusable pitch, he said.

Al-Husseini said he wanted to call their figures to task because they shape
major government policy decision more than any other agency’s data.

-By Shai Oster, Dow Jones Newswires; +44-7842-9357; [email protected]

(END) Dow Jones Newswires

10-27-04 1407ET

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