The Oil Drum Beats
8/29/2006

The Oil Drum 

 

In response to analysis of current/future 'From the Old to the Newer' Saudi production ...

 

[O]il in the high $60's, low $70's is as cheap as it needs to be. I think the Saudi's will "manage" supply from Khurais and it's other fields, and they are correct to do so. It will be doing the Saudi's, the U.S., the world, and our future a great service to contain supply and hold the price at about the current level, at lowest.  

 

If this field can be run "flat out" to get 1.2 mbd, we should never find out, because it should not be tried. What would be the point, with massive energy waste and lack of investment in real alternatives still huge obstacles to our future security and prosperity?

 

I would be happy, overjoyed to live out the rest of my natural days with oil at $75 to $80 dollars a barrel, and gasoline at $3.50 to $4.00 per gallon U.S.

At those prices we would still be stealing it!  

 

A push to max out production and drop the price endangers the oil fields, endangers the environment, endangers investment in alternatives and efficiency engineering, and most of all, endangers our future.