Tuesday, February 8, 2011

Somewhere, Matthew Simmons is Smiling

Add Saudi Arabia to the list of folks unhappy with Julian Assange and Wikielaks.  The Guardian newspaper in England revealed today that U.S. diplomatic cables in WikiLeak's possession from representatives in Riyadh, Saudi Arabia reveal a strong belief that Saudi oil reserves are overstated by 40%.  If true, Saudi Arabia would not be able to increase production to keep up with increasing global demand and oil prices could escalate quickly.  The alleged overstatement of Saudi reserves is an old story, but this is a big piece of evidence confirming the belief.

You have to know the peak oil folks are throwing an "I told you so!" party tonight.

Expect Boone Pickens and the CNG folks to chime in about the virtues of natural gas for vehicles too.

No comments: