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Published by James Bradley
The world crude oil situation - Feb 2012 - Peak Production reached already?
The world crude oil situation - Feb 2012 - Peak Production reached already?

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Published by: James Bradley on Feb 26, 2012
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February 26
, 2012
In the industrialized world it is no secret that “oil” impacts every singleaspect of the lives of its population, whereas our food line is part of it, alongwith our clothing, electronics, and hygiene products along with nearly 100%of our transportation needs – in other words take oil off the table and ourlives would be severely disrupted. With this in the back-of-your-mind, wonderno more why the oil giants on our planet like ExxonMobile, BP, Total andRoyal Dutch Shell haul in those embarrassing profits year in and year out,making other corporation across our Blue Marble look like the corner Bar andGrill when it comes to their cash intake.Since the global economy has of late become a topicof concern, we must remind ourselves that our currentglobal economic model is based on “continuedgrowth”, which is primarily based on “cheap” energy.Experts in the field of energy tell us that “fossil fuels”run around 84% of what we consume in our demandfor energy, and oil is 35% of our primary consumptionof energy.Understanding just how much oil affects our daily lives and the globaleconomy, the next step would be to determine just how much of the “blackgold” we have left lying about beneath the ground and our oceans. You wantto see a “stock market crash”, pull a few billion barrels of oil from our dailyneeds and watch the economic house of cards fall flat or far below its presentvalue. This is especially true today as some predict that the “carbon bubble”
trail we’re on today will make the housing bubble and our current debt crisislook and feel like schoolyard antics.In all seriousness the experts really don’t have a true picture of the“reserves” of that black stuff, where it is impossible to garner accuratefigures from the 12-member countries of the Organization of the PetroleumExporting Countries (“OPEC”) – where as part of their internal top secretagreements, they established a quota system 25-years-ago that plays willy-nilly with the numbers. Over the past decade or more all of the MiddleEastern Gulf countries have over-stated their reserves, causing its othermembers to follow suit.
Proven Oil Reserves -200980% of the World’s Proven Reserves are in OPEC countries, with 65% in theMiddle East
Why would they “stretch” the figures? Simple their oil production is basedon the number they report, of the actual reserves they’re pumping frombeneath the ground. Along this line observers outside of the sacred halls of OPEC agree that their numbers of overstated, this to insure, based on theirinternal quota system, that the bigger the reserves, the larger your quota.Although as a whole the world understands their overstatements, what can itdo, where with bigger reserves they become the world’s biggest drain on anygrowing economy, and smile all the way to the bank, or some other holewhere they stash their revenue.
Most of you probably won’t recall about the scandal in Kuwait a few yearsago when someone “leaked” a secret government study that reported theKuwait’s reserves were 50% of what they had been reporting, in response thegovernment of Kuwait went into lock-down mode and refused to answer anyquestions concerning the “leaked” information, zip – nada!Kuwait is only one of the OPEC members consider that there are elevenothers that have been juggling their books to look good. The others,1)Algeria2)Angola3)Ecuador4)Iran5)Iraq6)Kuwait7)Libya8)Nigeria9)Qatar10)Saudi Arabia11)United Arab Emirates12)VenezuelaOut of the 12, six account for more than 80% of OPEC oil, Saudi Arabia,Kuwait, Iraq, Iran, United Arab Emirates and Venezuela – and all of them have“jacked uptheir reserves by 100% between 1984 and 1988. Whereaccording to those who make their livelihood from such numbers, thisincrease took place when the members of OPEC changed how they set(established) their production quotas. Since that time, Saudi Arabia forexample, their reported reserves have “flat-lined” since 1988 – in other wordsthey have not changed their reserve amounts – yet they have produced some96 billion barrels of oil between 1980 and 2010. Today it appears thatsome of the OPEC countries are “underreporting” their reserves, in order the“jack up” the cost per barrel, a situation that will sooner or later create aneconomic crash.At the OPEC website they report, “according to current estimates, OPECmember countries have made significant additions to their oil reserves inrecent years…As a result, OPECs proven oil reserves currently stand at wellabove 1,190 billion barrels.” In addition according to the OPEC reportingmechanism its countries have added around 347.2 billion barrels to theirtotals. In this they “claim” they have the ability to meet the forecasted

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