Monday, January 23, 2006

PIW's report on Kuwait's oil reserves mentioned the unsurprising fact that officials have been lying about official numbers...

First there is this:
"Jan 16 (KUNA) -- Kuwait's oil sector has seen huge and unprecedented developments...During the six-year period to end-2005, Kuwait's crude reserves increased from 96.5 billion barrels to 99 billion"
Oh KUNA...
Then there is this:
"LONDON, Jan 20 (Reuters)...according to data circulated in Kuwait Oil Co (KOC), the upstream arm of state Kuwait Petroleum Corp, Kuwait's remaining proven and non-proven oil reserves are about 48 billion barrels"
Then of course there was this :
'I have no idea where they got this figure from ... I don't think it's accurate,' Farouk Al Zanki, the chairman of state-run Kuwait Oil Company (KOC) said in Kuwait City...'We are always evaluating our reserves,' Zanki said. 'Up to now, they are set at 95 (billion barrels) ... I don't know who gave them (PIW) those figures, I have no idea, but I don't think it's 100 percent accurate.'
As far as unconvincing statements go, it's not encouraging when the Chairman of KOC says things like "I don't think its accurate", or "I don't think it's 100 % accurate" ...Is it 99% accurate? Is it 50% accurate..we don't know..and then there is the fact that he admits it is set at 95 Billion barrels, which is neither the 96 Billion it was or the 99 Billion it was supposed to have become according to KUNA's report above..So at the very least PIW's report was not 100% innaccurate , right?..sigh..
Now there is also this:
"US crude oil futures settled above $US68 on Friday, the highest in nearly five months, as tension over Iran's nuclear research program and unrest in Nigeria continued to stoke fears of supply disruptions.
A report from industry publication Petroleum Intelligence Weekly that Kuwait's oil reserves are only half those officially stated helped push prices higher in late trading
An article with lots of graphs for those who want more info at The oil Drum
"Peak Oil means not 'running out of oil', but 'running out of cheap oil'. For societies leveraged on ever increasing amounts of cheap oil, the consequences may be dire. Without significant successful cultural reform, economic and social decline seems inevitable."
From Energy bulletin's Peak Oil Primer
Here are some quotes from : PEAKING OF WORLD OIL PRODUCTION:

  • "A unique aspect of the world oil peaking problem is that its timing is uncertain, because of inadequate and potentially biased reserves data from elsewhere around the world"p6
  • "Sometimes politics or self-interest influences reserves estimates, e.g., an oil reservoir owner may want a higher estimate in order to attract outside investment or to influence other producers."p. 12
  • "Higher oil prices result in increased costs for the production of goods and
    services, as well as inflation, unemployment, reduced demand for products other
    than oil, and lower capital investment." p.28


And now we can all return to the 'I'll have you for lunch before you have me for dinner' kwti leadership wrestling match ..


Shurouq said...

I guess tomorrow's lunch is being served already

kwtia said...

you got that right my friend..

kwtia said...

But the damage has been done..