According to a confidential cable made public by WikiLeaks, a senior Saudi government oil executive warned that Saudi crude oil reserves may have been overstated by as much as 40%. That translates to 300 billion barrels. YIKES! Could some one please explain after 30+ years since the oil embargoes of the 1970′s … how does the United Stated not have a comprehensive energy plan that includes oil exploration in the US, nuclear, clean coal, etc that would make of independent of foreign oil? We can also research “green” methods but that is way down the road. We fought a war of Independence in 1776, why are we not fighting a war for energy independence in the 21st century?
The US fears that Saudi Arabia, the world’s largest crude oil exporter, may not have enough reserves to prevent oil prices escalating, confidential cables from its embassy in Riyadh show.
The cables, released by WikiLeaks, urge Washington to take seriously a warning from a senior Saudi government oil executive that the kingdom’s crude oil reserves may have been overstated by as much as 300bn barrels – nearly 40%.
The revelation comes as the oil price has soared in recent weeks to more than $100 a barrel on global demand and tensions in the Middle East. Many analysts expect that the Saudis and their Opec cartel partners would pump more oil if rising prices threatened to choke off demand.
More from the UK Guardian:
One cable said: “According to al-Husseini, 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.”
It went on: “In a presentation, Abdallah al-Saif, current Aramco senior vice-president for exploration, reported that Aramco has 716bn barrels of total reserves, of which 51% are recoverable, and that in 20 years Aramco will have 900bn barrels of reserves.
As Mother Jones asks, has Saudi oil already peaked? An even better question is why the United States has not more weened itself from foreign oil, especially in the Middle East, and end the dependence. Oil does not just affect energy in the US, it has a tremendous effect on the economy and national security. THE US IS NOT ENERGY INDEPENDENT WHY?