Home Peak Oil in Saudi Arabia? Unpacking The Data

Peak Oil in Saudi Arabia? Unpacking The Data

Saudi Arabia is pouring billions into the ground yet their output has been in decline for several years. They claim this is because they are choosing not to pump more, but then why invest in ever-increasing amounts? What if Saudi Arabia is at (or past) Peak Oil? This would not bode well for world financial markets. It would … bode badly?

user profile picture Chris Martenson Mar 11, 2024
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It’s truly astonishing to me how hard it is to get otherwise highly educated and informed people to engage with the concept of Peak Oil.

We’ve got mountains of data at our fingertips, and yet one of the most common responses to it all is something along the lines of “well, humans will think of something.”

Maybe, but hope alone is not a good life (or investment) strategy.

One of the most important lynchpins in the entire tottering global edifice of debt is Saudi Arabia’s oil supplies and output.  For some unknown reason, Saudi Arabia has been plowing higher and higher amounts of money into upstream oil & gas production but has been producing less and less.

How many explanations do we have for this?

1 – Saudi Arabia has been wasting money

2 – Saudi Arabia has been patiently investing in new production which is being kept in reserve

3 -Saudi Arabia is at or past Peak and is fighting declines by investing furiously and then telling the world it is cutting back production on purpose.

If it’s 3, my dear friends, we are in trouble.

The US in particular now sports 31% of total world debt, but only 6% of the world’s population making it one of the most highly leveraged countries out there.  A continual stream of affordable oil, in sufficient quantities, is absolutely necessary to keep the whole thing going.

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A peak oil realization in 2025, spiking prices. Do you think there is potential for global and regional famine and general population collapse? Imagine all...
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