“Saudi Arabia is the only member of OPEC with the spare capacity to boost supplies quickly and significantly. It could pump around 2 million bpd more than it does.” If that is not a hint that oil production is maxed out, it is unknown what is.
The opening quote is from a Reuters news report on June 15, 2008. It certainly is an eye opener for the people that may have been believing other stories of deception that things are just fine. This boost in oil production from Saudi Arabia is 550,000 bpd or roughly 25% of what is left between the pedal and the metal for oil production in Saudi Arabia. After that when Saudi Arabia oil production is maxed out, look for $200.00 to $300.00 per barrel inside a few months.
Saudi King Abdullah “sees that oil prices are currently abnormally high and he is willing to do all that is possible to bring prices to their appropriate levels,” state news agency SPA quoted United Nations chief Ban Ki-moon as saying after meeting the Saudi monarch.
That about says it all and the only answer to this is rapid change in how people live. The dependence on oil must be halved in as fast a time as possible. China may need to put the brakes on it’s oil consumption and change to cars with more modern sources of power. The same applies for the USA and other oil hungry countries.
This does open a new economic front and jobs if you are looking for the silver lining in this dark cloud. Small companies that can startup and produce alternative energy products to use will be very prosperous. This is an entirely new industry base that’s time has come. However the question is can it grow fast enough to meet demand. There certainly will be several generations of these products so this looks to be a long lived and prosperous industry. It would appear it may be time to talk to your stock broker to restructure your portfolio.