Word is, a new Wikileaks cable is reporting that Saudi Arabia may have exaggerated its reserves by 40 percent.
Shocked?
You shouldn't be. We've been talking about this for years.
Oil-producing nations have long manipulated reserve numbers. It's all part of the game that keeps us chasing the black stuff like crack whores in a mall full of degenerate politicians.
Apparently the warning initially came from a senior Saudi oil executive who said that the country's crude oil reserves have been overstated by nearly 300 billion barrels. This is huge!
The Guardian, which reviewed the cables, has reported that the former head of exploration at Aramco, told the U.S. consul general in Riyadh that the oil company could not keep up with the 12.5 million barrels a day needed to keep prices low – suggesting peak oil could be reached as soon as 2012.
Of course, we're now going to hear a million reasons as to why we shouldn't be too confident in these cables. But at this point, I'd be more suspicious of those who will use this opportunity to continue the lie that peak oil is not an issue that could break us. Because that's exactly what it is.
And any investor or consumer that is not paying attention to this is going to get burned. You can count on that!
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