Peak oil: it’s all about the Saudis

| 27 June 2008 11:58

Whether you believe that peak oil is here or you believe that it’s fantasy, ultimately your opinion rests on whether the Saudis can pump more oil. For years, Saudi Arabia has been the swing oil producer, able to turn on its oil spigots when more was needed. Back in 1998, one reason oil went down to $12 a barrel was that Saudi Arabia wanted to flood the market and lower the price in order to teach OPEC cartel cheaters a lesson.

Now, with oil above $140 a barrel, the question is: does Saudi Arabia have any spare capacity left and if not, can it build some in quickly. The blog site “The Oil Drum” concentrates on oil and gives an excellent analysis of just that question.

The devil is in the production details of Saudi Arabia

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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