|Sheik Sadad al-Husseini|
Saudi Arabia: March 23 2011 - Sadad al-Husseini, the man in charge of exploration and production at the Saudi state-owned company Aramco for 12 years until 2004 revealed his opinion of the Saudi and World Oil poistion in a leaked cable from 2007.
Saudi Aramco dominates exploration and production in the kingdom.
Al-Husseini is quoted as disagreeing with his former company’s estimate of total reserves in Saudi Arabia, the world’s largest oil producer.
“He believes that Aramco’s reserves are overstated by as much as 300 billion barrels of ’speculative resources.’ He instead focuses on original proven reserves.”
And as global demand recovers, driven by India and China, the price of crude oil has risen sharply. In the long term, Al Husseini sees an “underlying reality that global demand has met supply,”, “Due to the longer-term constraints on expanding global output, al-Husseini judges that demand will continue to outpace supply and that for every million-barrels-per-day shortfall that exists between demand and supply, the floor price will increase by $12 (per barrel),”. More >>>