VitalAccurateThinking

Saudis Say: Tap the Keg

The Saudi's seem to believe that only 18% of the world's reserves are tapped. I remain skeptical of this claim because if it is accurate, then it is a half-truth. It is deceptive because there may be another 82% technically under ground, it will become increasingly difficult and uneconomical to exploit. I heard this on the radio today by Howard Simons:

"The real truth about Peak Oil is it is a diminishing return on investment argument. The resource space is here, but you have to spend more and more to get less."

Truer words have never been spoke. We may have only tapped 18%, but the remainder is very expensive.

posted by Jim VAT @ 5:20 AM