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. For the first time in 150 years, the world is entering an era in which it cannot have all the oil it wants. "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."

- Hmm, "optimise by availability"? That sounds like rationing to me. Won't be pretty.

(2006-07-12 12:26:24 SGT) [Energy] Permalink

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