Monday, March 08, 2010

Why does OPEC lie about its oil reserves?

Why does OPEC lie about its oil reserves?
This is going to be a big problem sooner rather than later. When everyone realizes how true this probably is it will set off yet another oil shock. There is no spare capacity especially once the recession turns around. Conservation is not going to be enough and energy will go to the richest countries. Most of the big fields are about to peak or have peaked and are in terminal decline and yes even though there have some big finds like the Sugar Loaf field this oil is years away and very hard to get at which will present several technical challenges. Cantarell is just the beginning and a sign of the future. When Gwar goes into very rapid decline because of the injection process it will be the wake up call the world needs but this will probably be too late to properly transition to a non petroleum economy.

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