Saudi production – forcing the water-cut?

Staniford has it as usual:

The crucial thing to note, is that they are  a million barrels a day down on their 2004-6 and 2008 peak, despite a ‘breather period’ (2009). It will be interesting to see, but my guess is that 1 million bpd is all that they have up their sleeves, and that hindsight will show us a ‘spike’.

Here’s their ex-chief geologist:

And they’re over in Bharain quelling peasants. Whether you  see it in ‘price’ or ‘availability’ terms, it’s hard to see oil getting cheaper. Given the inevitable brake that will slow down (but won’t stop) new nuclear development following Japan, it’s hard to see energy getting cheaper/easier gotten across the board – given that displacement (coal-to-oil, coal-to electricity, gas to electricity) will be happen where it can.


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