Peak Oil Passnotes: From Iran to Chad, It’s Really Bad

If the markets could behave like a rational entity we would already be at $80 oil, no problem. Of course we know markets do not behave rationally, instead they have a kind of menopausal myopia. Fixated on one topic one minute, hysterical about another the next.

Thus they have ignored a welter of events that theoretically should have pushed price way over $69. First, it appears very likely that one insane African leader, Obusanjo of Nigeria, is going after a third term in office.

…So with all this in mind the announcement by Saudi Arabia that their “mature fields” are going to decline by 8% a year has been lost in amongst the bullets and spinning centrifuges. They worded it rather vaguely of course. Did they include the mighty Ghawar?

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