The Oil Drum is a great place to find intriguing (and sometimes scary) discussions and analysis about energy topics. A March 2, 2007, graph-filled posted titled Saudi Arabian oil declines 8% in 2006 falls into the second category.
Saudi Arabian oil has been so important for so long that many world leaders take it as a given. The warning signs of a possible fall in Saudi productive capacity are starting to become ever more clear, and Stuart Staniford has done a good job in assembling some important data that show the trends. If Mr. Staniford (and others like Matthew Simmons) are right, the world needs to look very hard for ways to reduce oil demands quickly so that people’s lives are not totally disrupted by rapid price increased caused by the clash between falling supply and growing demand.
Do not be lulled into a false sense of security by temporary price drops or loud announcements of new production sources. The declines in many key regions are not “news” but they happen with consistency and without any real means of reversal.