The terminal decline of Saudi Arabia's oil industry
Saudi Arabia is the most important oil producer and oil exporter in the world, the single country with most conventional oil reserves, which is the reserves that really matter. If we count both conventional and unconventional reserves, only Venezuela has more stuff.
During the last couple of years, OPEC and Saudi Arabia has made oil production cuts after oil production cuts. Which makes their oil production look like this:
(source: this recent blogpost on the blog "Peak Oil Barrel")
The latest oil production cut of OPEC of a whopping 2,2 mbd was announced in November 2023, and was to be implemented in the first quarter of 2024. See this article on www.oilprice.com about it.
If it is implemented, we will see a very sharp and substantial decline in the graph above. It will be interesting if this decline will materialize in the graphs on the Peak Oil Barrel-blog, one of the most important blogs of our time. I follow this blog with holy awe. It is like witnessing a slow train wreck, signaling the imminence of the Second Coming of Jesus and the Doomsday.
Of course the Saudis do not want to talk about their cuts as inevitable, due to oil scarcity, lack of oil investment, lack of new discoveries, lack of funding and other economic problems. They want them to seem political. They do not want to show their weakness. Of course. Otherwise they would commit political suicide.
But below the surface Saudi Arabia is a nation in decline. See for example the article "Saudi Arabia Can No Longer Raise Oil Output For Cash" on www.oilprice.com, by
