OIL PRODUCERS SAY THERE IS NO SHORTAGE IN THE FUTURE!

It has been argued by Environmentalists and alternate energy proponents , that the world is consuming too much oil, and it would not be to many decades before the supply of oil in the ground runs out!

This added to the yet unproven environmental argument that fossil fuels contribute to "Global Warming", we as a country have boarded the the "bio-fuels" train.At the same time that we in the USA are trying to conserve oil this news should show that the Communists don't think in terms of reducing air polution from oil use.

Official data from China indicates that this country's oil consumption crossed the eight million barrel per day barrier last June. This reconfirms China's position as the world's second largest oil consumer after the US and ahead of Japan.


The bio-fuel system has proved to be more costly, and needs a federal subsidy to exist. And further more, does as much if not more harm to the atmosphere and the people who live on the Earth.
It has reduced the amount of wheat and rice in great proportions, and has raised the cost of food severely. In some third world countries famine has raised it's deadly head!
And by the way,also damages the fuel injection system of present day cars and trucks over time!

Now we have news from the oil producing countrys, OPEC, that there is no shortage of oil reserves.
To illustrate this FACT, I have excerpetd a small portion of a report that appears in Dar Al Hayat about the subject of oil.

"The doubts about whether future supplies will suffice to meet the mounting demand, foment fears and lead to high, unjustified price levels. The doubting is not alone responsible for the rise in prices, of course; there are other factors, such as the under-investment in refineries in the United States, the world's biggest consumer. There are also environmental disasters, the weather, and the fear of political factors, like a potential strike against Iran, unrest in Nigeria and the crisis conditions in Iraq. However, oil experts and officials in the large producing countries affirm that there are sufficient traditional and non-traditional oil supplies that require new technologies.

Aramco, for example, is increasing its annual reserve by the amount that its fields produce. Producing countries, like Saudi Arabia and other big Arab oil states, do not agree with the theory of long-term oil depletion. Preserving excess 2-million-barrels-per-day productive capacity in Saudi Arabia is part of the Kingdom's keenness to cover any shortfall that takes place in the world, even if the cost of preserving this excess capacity is high. However, Saudi Arabia's oil policy focuses on price stability.

Everything that is being said about alternative energy sources such as ethanol, solar energy, nuclear power and others will not replace oil, in the view of experts who have worked in the Arab oil industry for decades. For centuries, oil will remain a primary source of energy, and new technologies will help increase the international reserves.

The doubt about the ability to secure energy helps only those who want to speculate in the markets, so that prices reach the highs they hit in July (when they crossed the 140-dollar-barrier a barrel then dropped to $120). No one knows where prices are heading now, since the main producers are not the only players in the market, and because prices, despite the players' determination to see them stable, have reached a level that has inflated the cost of all projects and investments.

"Relax, there's enough oil for the coming decades. Stop producing ethanol, which is using up agricultural materials and has raised the price of food worldwide."
This is the view of Robert Mabro, the honorary president of the Oxford Energy Seminar, which is directed by the Kuwaiti expert Nader Sultan and which hosted the Saudi Aramco CEO, Abdullah Jumah, Shell chief executive, Jeroen van der Veer, Petrobras president, Sergio Gabrielli, and the chairman of the International Energy Agency, Nobuo Tanaka.


All of the information from producing states, especially the major ones, contradicts the doubts that are being spread by Western official circles, namely that the available reserves are insufficient to meet the growing demand for oil worldwide, in the emerging countries as well as in big countries like China and India.

In fact, such doubts considerably raise the price of oil and spread fear in consuming countries that they must hurry to find alternative energy sources, while this is not the case.

Saudi Aramco is one of the main players in the oil industry, but is not the only one. Aramco was established in 1933, and became fully-Saudi-owned in 1988. It continued to be run like an international giant and celebrated its diamond jubilee. Aramco's productive capacity in 2009 or early 2010 stands at 12 million barrels a day; Saudi Arabia's total productive capacity will reach 12.5 million.

International oil experts say that international companies traditionally try to boost their oil reserves by 35-50%. Meanwhile, Saudi Arabia strives to improve its productive fields by 70%. Saudi Arabia is keen to preserve its 2-million-barrels-per-day excess production capacity, which represents advanced production kept to confront emergencies or shortfalls in the world. This is due to the fact that the Kingdom is determined to preserve the stability of international markets and oil prices

The doubts about whether future supplies will suffice to meet the mounting demand, foment fears and lead to high, unjustified price levels. The doubting is not alone responsible for the rise in prices, of course; there are other factors, such as the under-investment in refineries in the United States, the world's biggest consumer. There are also environmental disasters, the weather, and the fear of political factors, like a potential strike against Iran, unrest in Nigeria and the crisis conditions in Iraq. However, oil experts and officials in the large producing countries affirm that there are sufficient traditional and non-traditional oil supplies that require new technologies. Aramco, for example, is increasing its annual reserve by the amount that its fields produce. Producing countries, like Saudi Arabia and other big Arab oil states, do not agree with the theory of long-term oil depletion. Preserving excess 2-million-barrels-per-day productive capacity in Saudi Arabia is part of the Kingdom's plans to cover any shortfall that takes place in the world, even if the cost of preserving this excess capacity is high.

Everything that is being said about alternative energy sources such as ethanol, solar energy, nuclear power and others will not replace oil, in the view of experts who have worked in the Arab oil industry for decades. For centuries, oil will remain a primary source of energy, and new technologies will help increase the international reserves.


The doubt about the ability to secure energy helps only those who want to speculate in the markets, so that prices reach the highs they hit in July (when they crossed the 140-dollar-barrier a barrel then dropped to $120). No one knows where prices are heading now, since the main producers are not the only players in the market, and because prices, despite the players' determination to see them stable, have reached a level that has inflated the cost of all projects and investments.


Source:English.darathayat.com