There has been a lot of chatter about Saudi Arabia running out of oil since Matt Simmons published his famous book "Twilight In The Desert" several years ago.
Christian DeHaemer, a well known commodities investor and newsletter writer is hearing more chatter about Saudi Arabia hiring Haliburton to come in and drill further on the world's biggest oilfield Ghawar, which produces some 5 million barrels a day. This field has been produced very hard for over 4 decades and rumors have swirled for years about the Saudis attempts to maintain production through water injection. To bring in Haliburton brings questions as to whether the Saudis have run into field management problems to maintain production.
Mr. DeHaemer lists 3 reasons in his short article as to why he thinks the Saudis have reached the other side of peak production. Its worth a read.
Took me a while to get to it, but that article link was awesome. Could the Saudis just be figuring out another way to scare up the price of their crude? Think about it. Hiring Haliburton could just be a ploy to cause all this speculation and cause a false price run up. Have I got a paranoid mind or what?
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