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Oil production limit reached: expert

posted Monday, 10 July 2006
Shortage looms: Dr Bakhtiari says the world has five years to prioritise oil use.

Shortage looms: Dr Bakhtiari says the world has five years to prioritise oil use.

Oil production limit reached: expert

An international oil industry expert says the limit of global oil production has been reached.

Academic and former National Iranian Oil Company executive Dr Ali Samsam Bakhtiari has told the Financial Services Institute in Sydney the world's oil fields are producing as much oil as they can.

He says giant fields in Saudi Arabia and Kuwait are struggling to meet production targets.

Dr Bakhtiari says the massive output declines in the North Sea oil fields and Mexican oil fields will have a major economic impact.

"Crude oil is the master domino," he said. "When you tumble crude oil, all the other dominos tumble."

Dr Bakhtiari says for the first time in 150 years, the world is entering an era in which it cannot have all the oil it wants.

He says there are five years left to plan priorities for the use of crude oil.

"Some countries don't even know what is happening," he said.

"Some huge companies don't even know what is happening and they are going to be ambushed and trapped and they are going to panic.

"The worst thing you can do is to panic when the prices are going to go sky-high."

He says he does not know how high the price of crude oil has to go to reduce demand but so far, it has tripled in four years.

He says OPEC is already producing as much as it can and new discoveries are small.

"The problem will become the day that you cannot optimise by price," he said.

"You will have to optimise by availability, so there won't be oil for everyone."

ABC TV's Four Corners program this week examines the state of the world's oil reserves.

source: http://www.abc.net.au/news/newsitems/200607/s1682899.htm

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1. lifabryan left...
Tuesday, 11 July 2006 2:15 am

FIVE YEARS!!?? That all we got? five years, my brain hurts a lot, five years, what a surprise!!! how am i gonna cook up my fries?


2. Robert Ahmann left...
Friday, 28 August 2009 2:20 am

The fact is no one knows for certain when financially economic oil will run out, but it will, because it is a finite resource. Most everything comes from oil in our high tech world. And it will peak along with many other industrial use resoures, and has already done so in many regions of the world, an indication of this is that we are now utilizing more costly production methods by digging up the oil sands in Alberta, Canada. M. King Hubbert is still regarded as having the best method for determining peak oil. Study the work of this late great man, and any intelligent person will realize the importants of educating the people about an alternative to the scarcity imposed price system dictatorship that we have all chosen as a vehicle for wasting our vital resources without any regard or attempt at real and sustainable conservation methods, because after all, profit trumps LIFE in this insane, and meaningless economic and political price system world.