some excerpt from few articles that tell it as is...lots of $$$ is spent to hide the real numbers for obvious reasons..the reserve no. is a state secret.
But
there remains skepticism about the true size of Saudi Arabia's oil reserves. The country increased oil reserves by 100 billion barrels from 170 billion barrels in 1987 to almost 270 billion barrels by 1989. Since then, the country's reserves have remained unchanged despite the fact that Saudi Arabia has produced almost 100 billion barrels of reserves since then.
And looking at the details, most of the country's significant oil discoveries were made from 1936-70 and no significant discoveries have been reported since then. Looking at a worst case scenario, and removing both the country's increase in reserves from 1987-1989 along with the country's production since then, and the country might only have 70 billion barrels of oil left.
Conclusion
Saudi Arabia might seem like it has a ton of oil as one of the strongest oil countries in the world. Despite that, the country has significant difficulties coming forward,
as it appears its oil is running out, even if it hides it from investors. While the country says it has 270 billion barrels of oil, looking at the numbers further makes it appear as if it might have just 70 billion barrels of oil.
Saudi Arabian Oil Is Running Out And That Will Affect Long-Term Oil Markets
Aug. 14, 2017 3:31 PM ET
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Summary
- Saudi Arabia is one of the most significant players in the oil markets. The country produces more than 10% of worldwide oil. But things aren't as pretty as they seem.
- A significant portion of Saudi Arabia's oil comes from its Ghawar Field which appears to be running out. The country might only have 1/3 of the oil that it says.
- There are a number of ways to play this, but I personally prefer either betting on a long-term oil market recovery or against the Saudi Arabian economy.
Saudi Arabia is an Arab country occupying the majority Arabian Peninsula. The country is the fifth largest country in Asia, but is composed mostly of desert with a fairly small population of just over 30 million people. Despite this, the country is continually thrust into the world spotlight thanks to one reason primarily. The country directly controls more than 10% of the world's oil production, and through its prime position in OPEC, has a significant say in worldwide oil prices. And worldwide oil sales are a multi-trillion dollar business.
Saudi Arabia (A Modern Country) - Saudia
As a result, anything that affects the oil environment in Saudi Arabia has a profound effect on the worldwide oil markets. And Saudi Arabian oil, as we will see throughout this article, is running out. This will have a significant impact on the oil markets and greatly increase their prices. And this is an impact that will have a profound and upcoming effect on the oil markets.
Saudi Arabian Oil Reserves
Saudi Arabia has larger oil reserves than any other country in the world. And these oil reserves and their production are part of what makes the country such a significant player in the global oil markets.
Worldwide Oil Reserves - BP Blogspot
Saudi Arabia has 266.8 billion barrels of oil reserves located under those sandy plains. Saudi Arabia currently produces approximately 0.01 billion barrels of this oil per day, meaning that at the country's present rate of production, its oil should last it roughly just over 73 years. While that is significant production, it is important to keep in mind that the country has already been producing oil for that long.
And that means that Saudi Arabia's oil should run out by roughly 2090, barring no other events.
But
there remains skepticism about the true size of Saudi Arabia's oil reserves. The country increased oil reserves by 100 billion barrels from 170 billion barrels in 1987 to almost 270 billion barrels by 1989. Since then, the country's reserves have remained unchanged despite the fact that Saudi Arabia has produced almost 100 billion barrels of reserves since then.
And looking at the details, most of the country's significant oil discoveries were made from 1936-70 and no significant discoveries have been reported since then. Looking at a worst case scenario, and removing both the country's increase in reserves from 1987-1989 along with the country's production since then, and the country might only have 70 billion barrels of oil left.
That remaining oil, in the present environment, would last the country just 19 years. And that doesn't keep into account that the oil is likely much less economical to recover in the present oil environment as compared to where it was two years ago. And yet we have seen no amendments in the country's economical oil reserves.
