Image via WikipediaSaudi Arabia's Oil Overestimated by 40%, Wikileaks RevealsLooks like peak oil might be even closer than we thought -- the most recent Wikileaks cable released by the Guardian has revealed that US diplomats are convinced that Saudi Arabia has overestimated its vaunted oil reserves by a stunning 40%. Saudi Arabia is the world's largest oil supplier, and is widely believed to be sitting atop the largest supply of the stuff in the world. But this revelation shows that the country may not have enough oil to keep prices from rising drastically over the next couple years.This is a big "Oh Crap!" We all knew it was here. We all know what the future may look like. Now we won't have to wait for the crap to hit the fan.
By the Saudi geologist's estimation, that means that the world may hit peak oil next year. This won't surprise many peak oilers who've long suggested we surpassed peak oil already, or those who've been predicting the event to occur this decade. Even the US military has openly predicted that the world may see severe oil shortages as soon as 2015.
But hitting peak oil as soon as next year would have a momentous impact on the global economy, which is still extremely dependent on oil. As we speak, oil prices are creeping above the $100 a barrel mark. As usual, analysts have counted on the Middle Eastern nation to pump additional oil if the prices rise high enough, and threaten to choke off demand, as the Guardian notes. But this cable suggests the era when Saudi Arabia can stabilize oil demand is well past its twilight.
And so many people condemn Wikileaks. They are doing us a service in getting the truth out.
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