GayandRight

My name is Fred and I am a gay conservative living in Ottawa. This blog supports limited government, the right of the State of Israel to live in peace and security, and tries to expose the threat to us all from cultural relativism, post-modernism, and radical Islam. I am also the founder of the Free Thinking Film Society in Ottawa (www.freethinkingfilms.com)

Monday, June 09, 2008

Oil shortage a myth.....

A contrarian view to the current orthodoxy...
There is more than twice as much oil in the ground as major producers say, according to a former industry adviser who claims there is widespread misunderstanding of the way proven reserves are calculated.

Although it is widely assumed that the world has reached a point where oil production has peaked and proven reserves have sunk to roughly half of original amounts, this idea is based on flawed thinking, said Richard Pike, a former oil industry man who is now chief executive of the Royal Society of Chemistry.

Current estimates suggest there are 1,200 billion barrels of proven global reserves, but the industry's internal figures suggest this amounts to less than half of what actually exists.

The misconception has helped boost oil prices to an all-time high, sending jitters through the market and prompting calls for oil-producing nations to increase supply to push down costs.

Flying into Japan for a summit two days after prices reached a record $139 a barrel, energy ministers from the G8 countries yesterday discussed an action plan to ease the crisis.

Explaining why the published estimates of proven global reserves are less than half the true amount, Dr Pike said there was anecdotal evidence that big oil producers were glad to go along with under-reporting of proven reserves to help maintain oil's high price. "Part of the oil industry is perfectly familiar with the way oil reserves are underestimated, but the decision makers in both the companies and the countries are not exposed to the reasons why proven oil reserves are bigger than they are said to be," he said.

4 Comments:

Blogger Reid said...

People not in the industry need to understand something. When talking about proven reserves, unconventional oil are usually not included. They're talking about "easy" oil, not actual oil.

Peter Linder is on Rutherford right now talking about this.

11:11 AM  
Blogger Johnathon said...

Just proves how all oil companies are corrupt and how the governments are lso corrupt for allowing its citizens to be starved to death via the gas pump.

Harper or Dion, it don't matter.

They're all the same.

Big oil = silence from the government.

11:16 AM  
Anonymous Anonymous said...

I wonder. I believe OPEC quotas are set in proportion to their reserves, the higher the reserves the higher the quota.
It motivates them all to lie.

11:45 AM  
Anonymous Anonymous said...

Johnathon:

You're right - it doesn't matter who's in the PM's office on this issue. Canada is powerless to affect WORLD oil prices. And since the price we pay is directly tied to world prices there's nothing the government can do.

BUT... there's tankers FULL of oil sitting unused. This is an artificial crisis - much like what Enron did to California. But it's not one company responsible this time... it's OPEC. It's world oil producers. It's commodities traders dealing on oil futures. It's pretty much the same thing that happened in the 70's.

1:31 PM  

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