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Saudi Arabia Soon to Reach Peak Oil

A few months ago, Julian Assange pulled a stunt of gargantuan proportions and let the general public in on all the secrets of diplomatic cabinets across the world. The effects of what came to be known as the diplomatic cables are still felt to this day.

The sheer number of documents made public will keep journalists busy for years and, from time to time, something really interesting will pop-up. Something like the concerns the US seems to have when it comes to Saudi Arabia's ability to supply the world with oil and keep the prices for the black gold under control.

Saudi Arabia is now the largest oil exporter in the world, but that status is about to change, if the assessment made by US officials prove to be correct. The Wikileaks cables revealed that the United States believe that the country had it wrong when it evaluated the oil reserves it possesses. Way wrong.

The documents show that the US believes Saudi Arabia has in fact 40 percent less oil reserves that initially believed, or 300 billion barrels less. That means that sooner than later, the exporter will become unable to maintain its current output, a fact which would lead to an increase in prices.

"According to al-Husseini [former head of exploration at the Saudi oil monopoly Aramco], the crux of the issue is twofold. First, it is possible that Saudi reserves are not as bountiful as sometimes described, and the timeline for their production not as unrestrained as Aramco and energy optimists would like to portray,"
the cables published by The Guardian reveal.

Al-Husseini thus formally disagrees with the Aramco official, and he is apparently given credit for his estimates by US officials. If he is right, the point when the rate of production enters terminal decline, known as peak oil, will be reached as early as 2012.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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