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Page added on March 26, 2017

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The myth of peak oil

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Saudi Oil Minister Khalid al-Falih has criticised the West for “promoting the myth of peak oil demand and scare-mongering over vast stranded resources in the fossil-fuel industry”.

Speaking at a summit in Houston, Texas, he said that a “campaign of attacks” on the oil industry will “deter trillions of dollars of vitally needed investment, leading to a disastrous energy crunch, once the current glut is cleared”.

Mr al-Falih added: “Leaders in the West are doing nothing less than compromising the energy security of the world. It will lead to damaging oil price spikes and more acute poverty for developing countries.”

He said that Saudi Arabia welcomes wind, solar and other renewables, but “they cannot quench Asia’s insatiable demand” for more oil or meet supply as global energy demand doubles by 2050.

He went on to say that “the global crude market has not yet tightened enough” and that some countries are “cheating” on production cuts.

“Saudi Arabia will not allow itself to be used by others. The agreement is for the benefit of all, and needs to be addressed by all. We cannot accept free riders.”

The minister said his country will back cuts only for “a restricted period of time” and warned that “speculators with big long positions on crude-oil derivatives should not expect the Kingdom to back up their bets by choking supply.

“I would caution them not to tempt investors into irrational exuberance, or into wishful thinking that OPEC or the Kingdom will underwrite the investments of others at the expense of its long-term interests.”

Mr al-Falih, who attended Texas A&M University, said: “The great exception to the investment drought is what is happening in the US shale industry. The so-called ‘green shoots’ are definitely here in the USA, but they may be growing too fast.

“The problem is that US shale is short-cycle. It is delaying the re-balancing of the global market as a whole, and it may push the long-awaited recovery in oil prices back to 2018.”

machinery-market.co.uk



9 Comments on "The myth of peak oil"

  1. onlooker on Sun, 26th Mar 2017 6:59 pm 

    How comforting to know Oil is limitless! Not

  2. Boat on Sun, 26th Mar 2017 7:25 pm 

    The Saudi minister should have had enough brains to know the US will keep adding rigs until the price is so low they quit adding. Shell claimed they could make profit on a new well at $20. The Saudi blames the governments of the west for to much production. Lol The government does not control producers in the US. Unlike the Saudi, Russia, China the US producers are just a bunch of hungry guys trying to make a buck.

  3. twocats on Sun, 26th Mar 2017 7:26 pm 

    “The problem is that US shale is short-cycle. It is delaying the re-balancing of the global market as a whole, and it may push the long-awaited recovery in oil prices back to 2018.”

    that we have to go to the saudis to get the straight story about what’s going on is just another bizarre outcome… oh forget it, someone please post another peak-demand article so that I can sleep soundly tonight.

  4. Sissyfuss on Sun, 26th Mar 2017 11:35 pm 

    If the Aggie Wahabist needs trillions of dollars of needed investment, talk to the Fed. They own the printing presses.

  5. Northwest Resident on Mon, 27th Mar 2017 1:38 am 

    There will always be oil as long as the energy exists to drill for it. Imagine how energy intensive this oil well is — the deepest in the world:

    Into The Depths – How deep do we need to go for oil?

    https://www.fuelfighter.co.uk/blog/drilling-crude-oil/

    “Back in 1949, the average depth of oil wells drilled was 3635 feet. By 2008, that rose to around 6000 feet.”

    But the shaft on this oil well is 40,000 feet deep! Check it out.

  6. Cloggie on Mon, 27th Mar 2017 3:00 am 

    Saudi Oil Minister Khalid al-Falih has criticised the West for “promoting the myth of peak oil demand and scare-mongering over vast stranded resources in the fossil-fuel industry”.

    Translation: “why do you attack our source of income?”

    Sorry mr Khalid al-Falih, but the world now has an alternative for your dirty gunk and Europe in particular has decided to get rid of you as soon as possible.

    https://en.wikipedia.org/wiki/Energy_policy_of_the_European_Union

  7. baha on Mon, 27th Mar 2017 5:54 am 

    What a bunch of spoiled babies…”if you continue to insult me I will take my toys and go home”

    Please do!

  8. Dredd on Mon, 27th Mar 2017 12:36 pm 

    The myth of endlessness on a finite planet is a no brainer.

    99 – 1 = 99 is for junkies.

    99 barrels of oil
    on the wall,
    99 barrels of oil,
    take one down
    pour it around
    98 barrels of oil
    on the wall …

  9. Newfie on Mon, 27th Mar 2017 9:40 pm 

    The shale oil producers are eating the Saudi’s lunch. Ha ha ha ha ha.

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