256. KUWAIT RESERVE DOWNGRADE: FALSE ALARM
In #220 I commented on the recent rumor that Kuwait's oil reserve figures were inflated. The imminent peak people, in their usual grasping at straws, made this very poorly substantiated rumor into centerpiece-of-the-week of their argument that PEAK OIL IS HERE NOW (insert scary organ music).
Yesterday, however, the Kuwaiti oil minister put this rumor to bed. It turns out that Petroleum Intelligence Weekly published without getting their facts straight:
"The report contained some right information but not the whole picture," Energy Minister Sheikh Ahmad Fahd al-Sabah told reporters before leaving for Vienna to attend an OPEC meeting.Aren't those stats amazing? Kuwait has 74 untouched reservoirs just sitting there, gathering dust, and they just discovered 10-13Gb of light crude. Looks like it's time to push the snooze button again.
"The information is related to only 31 reservoirs we are currently working on. It does not include reserves in another 74 reservoirs which are not developed," Sheikh Ahmad said.
The minister told a press conference late Monday that Kuwait had discovered new reserves estimated at 10-13 billion barrels of light crude in northern Kuwait.
"The new discovery increases our reserves by 10 percent," said Sheikh Ahmad, adding that the previous reserves were estimated at about 90 billion barrels.
"We still have too many reservoirs that we have not touched yet. There is a great potential of raising our reserves considerably."Source
Of course this news won't stop the peak oilers. If some 3rd hand, unseen, anonymously leaked report in PIW says they don't have the reserves, they'll take that at face value. If the Kuwaitis say they do have the reserves, they'll just say the Kuwaitis are lying. See how slick that works? They're right no matter what anybody says. That's the beauty of conspiracy theory.
There is one big loose end on this story, though. How come PIW won't show us the documents they claim to have seen? If they've got the hard evidence on Kuwait, why won't they show it? Is PIW even qualified to definitively interpret documents in Arabic?
-- by JD
You seem to have a little bit too much optimism about the 74 oil resevoirs collecting dust. The 31 in production now contain about 50 billion barrels while the other 74 contain about the other 50 billion barrels, meaning they'll be harder to produce and more expensive. Since they're going after them last, they could also be heavier crudes.
However, the new field of light sweet is pretty amazing news. Finally a "massive" new discovery is actually massive.
I wonder what these 74 reservoirs contain then... They don't show up in the database lists of big fields (more then 500 million barrels)......
You seem a little bit smug here. After all, it wouldn't be the first time somebody has copped a big one (Anyone remember Watergate), only for the perpetrators to say, "hogwash."
Later, it *does* turn out the perpetrators *were* lying (Anyone remember Watergate).
So, let me get this straight, the Peak Oilers are malicious miscreants and the Kuwaiti oil team are paragons of virtue?
I like that. Do you also usually latch the stable door after the horse has bolted or do you just not care whether you've got a horse?
Did the Kuwaiti oil minister say why they were still exploring when they have huge reserves in 74 unused reservoirs? Do you believe everything that appears to give us an extra few years before peak?
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