Questions for you Dan...

[Gabriel Oak]

In the light of the new USD300bln solar project recently announced in Saudi Arabia, Look up "Why the saudis are going solar" by Jeffrey Ball...

Really interesting (2015) article on (partly) how Aramco sells a LOT of oil to its local market (saudi electricity company) at sub 5 dollars a barrel.

I am starting to wonder what the agenda really is for Saudi Arabia: weaning off oil in order to find a sustainable future (yes), floating Aramco (yes)...but what of the state of their reserves...what if they are not as immune as everyone thinks...how does this change our view of their current actions??

How plausible is it that Saudi Arabia's oil reserves, the gift that keeps on giving, are starting to fatigue?

Just musing...GO

[dan_s]

All oil fields eventually go on decline, even the big ones in Saudi Arabia. Most of their large fields are already on secondary recovery.

Several of our Houston members know a lot about the geology in Saudi Arabia. Lou Powers was the Chief Engineer for Aramco before it was nationalized. He tells me that Saudi will not produce over 10 million barrels per day no matter what happens because they must manage their production very carefully. You CANNOT pull to hard on the producers in a waterflood because it will cause "coning", which is very bad news.

Iraq and Iran are the only counties in OPEC with significant production capacity upside.

Here is a link to Lou Power's website: http://theworldenergydilemma.com/the-latest-news