A post from the Fast Company, confirmed what Wikileaks cables revealed on the proximity of the oil peak. Some experts even think that the current oil prices may become the norm. At more that a $100 a barrel combined with food high prices, oil prices may create a sustained pressure on world economies and stall the western recovery. The eagerness with which a military operation has been launched against the Libyan may note have only humanitarian reasons.
“Saudi Arabia, the world’s largest oil exporter, may not be panicking quite yet about its ever-declining oil supply–but the country is certainly concerned. Consider: in February, a Wikileaks document revealed that Saudi Arabia might be overstating its oil reserves by 300 billion barrels, and the country recently asked for a slice of the UN’s $100 billion climate change fund to help diversify to other energy sources (a galling request from such a wealthy country so dependent on other people not diversifying to other energy sources). And now the kingdom has announced that it plans to spend $100 billion on solar, nuclear, and other renewable energy sources. They haven’t announced over what time period they will spend it, but that’s a lot of cash. Private investments in Chinese renewable energy projects equalled $54.4 billion last year, which was the highest of any country.
“Fuel supply is one of the major challenges facing the power sector and the nation,” Saleh Al-Awaji, Saudi Arabia’s deputy minister for electricity at the Ministry of Water, said at a recent conference in Abu Dhabi (hat tip: Bloomberg). “The policy is to work intensely on saving energy and making sure every barrel of oil that can be saved is, and is made available for export.”
Photo Credit: Oil Fields – FlickR / By johnny choura