Saudi Arabia Will Run Out of Oil in 2012

Saudi Arabia, the world’s largest oil producing country will run out of oil in the year 2012. According to the latest wikileaks documents from the whistle-blowing site, Saudi Arabia have overstated their oil reserved by almost 40%.

Saudia Arabia’s oil production  was estimated at around 10.78 million barrels per day. Considered as the world’s largest energy producers. In 2007, the  oil reserves was estimated at 260 billion barrels and exported a total of 8.8 million barrels per day. The Ghawar oil fields holds the world’s largest oil reserves produced a total of 5,000,000 barrels per day.

In recent developments, the world was shocked by the news that circulated around the internet for a possible under supply of oil and the Saudi government could not produced the needed amount of oil to keep the prime commodities stable.

The rumors of undersupply and overstated crude oil reserved could cause economic imbalance in the world. Unprecented things may happened if the world could reach its peak oil. Peak oil is the termed referred to the time when the maximum rate of global petroleum extraction is reached, and the rate of production enters its decline.

According to wikileaks cables Saudi Arabia’s oil reserved was overstated by 40%. The documents obtained by wikileaks came from the conversation of a former Saudi Aramco’s employee and an unnamed American diplomat.

Two prominent Saudi Aramco’s employees have been involved with the conversation. Abdullah Al-Saif head of exploration for Saudi Aramco had told the American diplomat was estimated at 716 billion. The statement was contested by Sadad Al-Husseini, a predecessor of Al-Saif as exploration chief.

Sadad Al-Husseini made a definite statement that the oil reserves of Saudi Arabia was inflated by 300 billion barrels. Meaning the total reserved oil was not 716 billion barrel but was overstated by 40%.

With the growing demands for oil and other petroleum products energy analysts have estimated that by the year 2012 the Saudi oil reserved could reach its peak oil. Saudi Arabia will probably run out of oil in the coming year.