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On the Horizon: $200 a Barrel Oil   (January 3, 2006)

To start the new year on a deeply unsettling note, read this report in Barron's: Twilight for Oil?
Since publishing "Twilight in the Desert: the Coming Saudi Oil Shock and the World Economy" this past summer, and touching off one of the great debates of the early 21st century, energy banker Simmons has been squarely in the spotlight. Simmons argues that Saudi oil fields, contrary to reports, have been in decline for some time, and he views skeptically Saudi claims that it can adequately boost supply to meet accelerating demand. Simmons, who has headed the Houston-based energy investment banking firm Simmons & Co. International for 30 years, is no stranger to bold calls and controversy.
Building his case on readily available data, Simmons predicts oil will reach $200/barrel by 2010. The reason that the Saudi oil fields are so essential to world supply, of course, is that they make up almost half of all known reserves. There is no way to replace that vast ocean of oil, AND THERE NEVER WILL BE. See the books on Peak Oil listed below for stark and irrefutable evidence to support this statement.

In other news, I've created an archive of wEssays and weblogs organized by subject; please browse through the topics.

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copyright © 2006 Charles Hugh Smith. All rights reserved in all media.

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