Peak Oil Politics in Kuwait

…Kuwait, OPEC’s fifth-largest oil producer, caused a chain reaction wreck in world oil markets last January. First, it got hit with the truth–Petroleum Intelligence Weekly, an industry publication, announced that secret reserve accounting put Kuwait’s petroleum holdings at half the official estimate. Then the markets got hit with a rise, more than two bucks a barrel the next day.

In a world of Peak Oil, oil-rich states like Kuwait and their OPEC allies would rather string us junkies out as long as they can by promising bountiful future flow.

Patting us on the back and saying the oil won’t run out any time soon is paired with threats of supply reduction if major consumers like the United States pursue other energy options, like renewable energy and other alternative sources.

So when PIW pulled the magic carpet out from under Kuwait’s book-cookers, showing that their 99 billion barrels were really more like, ahem, 49 billion, the powers that be in that Gulf emirate got spooked.

Energy and Capital