Wednesday, September 28, 2005

Oil reserves are double previous estimates, says Saudi

By Saeed Shah
Published: 28 September 2005

Saudi Arabia, the biggest oil producer, and Exxon Mobil, the largest oil company, yesterday declared that the world had decades' worth of oil to come, in an attempt to calm fears about the record prices experienced in recent weeks.

Forming a powerful alliance, the Saudi oil minister Ali al-Naimi said, at an industry conference in Johannesburg, that the country would soon almost double its "proven" reserve base, while Exxon's president, Rex Tillerson, spoke of 3 trillion or more barrels of oil that are yet to be recovered.

Mr Naimi said that Saudi Arabia would "soon" add 200 billion barrels to its current reserves estimate of 264 billion barrels. The level of the kingdom's reserves and future production capacity are a controversial issue, with sceptics suggesting that it is running out of oil. Muhammed-Ali Zainy, of London's Centre for Global Energy Studies, said: "Since these Opec countries [like Saudi Arabia] are closed, the only information available is available to themselves alone. So they can come up with a new reserves figure and the rest of the world will just have to take it."

This is what ya call not showing your hand until you need to.

I bet they've know this for a long time and are coming out with the now because the price of oil is so high. High enough that the US was about the start mining all that shale oil in Utah, Colorado and Wyoming, thus becoming less dependent on the Saudi's oil.

Friday, March 4, 2005

Eyes on oil shale — again
Pricey extraction techniques might be feasible if price keeps going up

Oil prices Thursday peaked at their highest level since late October — sparking yet another debate about the viability of Utah's high-cost, high-risk shale oil reserves as an alternative fuel source.

The Green River Formation, a geologic swath stretching into Utah, Colorado and Wyoming, contains an estimated 1.5 trillion barrels of oil, according to the American Association of Petroleum Geologists.

The problem is, nobody seems to know how to get it out at a reasonable price.