Is Saudi Arabia Running Out of Oil?: "It's always been assumed, by the United Nations as well as European and U.S. policymakers, that Saudi Arabia would be able to pump more of its oil to fulfill increasing world demand. The Saudis are pumping, at most, 9 million barrels a day now and have boasted that they could pump as much as 15 million barrels a day for the next 50 years. Indeed, Saudi leaders promised that they would start pumping more a few weeks ago.
But because world oil production hasn't increased since those promises were made, economists and energy users have wondered whether Saudi Arabia has elected, for political reasons, not to fulfill its vow.
Simmons says it's worse than that. Much like the biggest problem in the Enron fiasco was that analysts always trusted Enron managers' declarations about the strength of its financial assets, he says that the world has always taken Saudi Arabia at its word for its oil assets. He now believes that it cannot be trusted."
Via Dale Price.