Kuwait and IEA Show Declining Oil Production Future

In the coming years, the situation will only increase, as more and more OPEC countries, even Saudi Arabia, will have to battle lower production levels and increased oil field depletion rates. Some analysts have said that the current depletion rate of Saudi Aramco fields, the largest in the world, has increased from 8% in 2005 to around 12-14% in 2006. This would mean that new fields coming in production will only be there to cover lost production volumes elsewhere.

If these figures really materialize the coming months, crude oil prices will go through the roof. Levels of US$100 per barrel or more would not be nightmares but reality. Investors should keep in mind that although peak oil is not yet a fact, peak oil prices are.

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