WikiLeaks Cables: Saudi Arabia Oil Reserves Overstated by 40%
February 9th, 2011Via: AFP:
THE US fears Saudi Arabia may not have enough oil reserves to prevent prices rising sharply, according to leaked cables.
The cables from the US embassy in Riyadh, obtained by WikiLeaks, urge Washington to take heed of a warning from a former Saudi government oil executive that the kingdom’s crude oil reserves may have been overstated by as much as 40 per cent.
US diplomats reported that Sadad al-Husseini, the ex-head of exploration at Saudi oil monopoly Aramco, “disagreed” with Aramco’s analysis that it had reserves of 716 billion barrels and that would rise to 900 billion barrels in 20 years.
The claims about the world’s largest crude oil exporter, published in The Guardian newspaper, come as the price of oil has soared in recent weeks to more than $US100 a barrel amid tensions in the Middle East and global demand.
I thought this was common knowledge among the peak oil crowd. I wonder if it’ll get picked up by the mainstream media (my guess: No).