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  Saturday  May 1  2004    08: 09 AM

oil

Is Saudi Arabia Still the King of the Oil?


So it's almost official: World oil production is in trouble. The secret has been slipping out of late, with reports of Royal Dutch Shell and other oil producers downgrading their reserves, but it now seems that Saudi Arabia may also be in crisis mode over its reserves.

At an energy conference in Washington, D.C. on Tuesday sponsored by the Center for Strategic and International Studies and the Saudi Business Council, the idea that Saudi oil reserves are drying up was certainly not something that the Saudi oil finance ministers and their U.S. counterparts would have admitted. In fact, they lined up to say that the industrial world has nothing to worry about on the oil front for decades.

That so many high-ranking Saudi and US officials should gather in public to tell us not to worry should be quite worrisome.

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Tomgram: Oil wars


Recently, Mark LeVine did a pioneering piece for Tomdispatch on the nature of the chaos in Iraq, including what he termed "sponsored chaos." The two piggybacked Tomgrams below remind us that the present visible chaos in the region may be nothing compared to the chaos to come -- and that on all sides there are parties (and not just American ones) ready to "sponsor" a distinctly chaotic future.

Iraq, as we all know, sits on vast oil reserves that, for complex reasons, have turned out to be difficult indeed to get out of the ground and to market. Despite the fact that the Bush administration is, by prior experience, an energy administration with a geo-energy view of how our planet works, our media spent much prewar time ignoring the issue of Iraqi oil and the clear desire of administration hardliners to plant further American military bases in the heart of the energy lands of our Earth. Oil, as a subject, was largely left to the business pages, when dealt with at all during those prewar (and then postwar and then, again, war) months.

Anyway, that was then, this is now. As Marshall Auerback and Brandon Sprague both indicate, we should brace ourselves for future oil "wars" of unexpected kinds. Auerback, an international portfolio strategist, considers one of Bob Woodward's recent revelations -- that the Saudis had promised the Bush administration a positive pre-election oil surprise -- and suggests that Woodward's information, undoubtedly gathered many months ago, is at best out of date. The surprise, it turns out, may be all on the Bush administration.

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  thanks to Cursor