Matthew Simmons calls on regional oil producers to curb output

Matthew Simmons, the controversial energy investment banker, has called on Middle East oil producers to reduce their oil production to extend the life of their reservoirs.

Simmons, chairman of Simmons & Company International and a leading proponent of the theory of peak oil, which states that production has reached its peak and will decline, says
Middle East states risk their reservoirs collapsing if they try to increase production.


“We are past the peak,” he says. “I think the big issue is shouldn’t they [regional producers] lower the rate of production. Financially it would not be a problem as oil prices would shoot up, and the countries could produce longer for more money.”

Simmons blames the industry’s belief that new technologies will enhance production rates for the ambitious growth targets set by Middle East producers.

He cites Oman’s Yibal field as a prime example of where new technologies came on line in tandem with a slump in output.

Middle East Business Intelligence