What will the rest of the world do if Saudi oil runs out early?

What will the rest of the world do if Saudi oil runs out early?

By Philip Thornton
08 February 2005

When the world wants guidance on monetary policy it turns to the Federal Reserve. When it comes to oil only one institution can be seen as the “central bank” of crude – Saudi Arabia.

Saudi produces 9.5 million barrels a day, or more than one-ninth of the expected global demand of 84 million barrels a day this year.

With a quarter of the world’s proven oil reserves, it is the only single entity that has sufficiently deep pockets to be able to intervene to control the market.

Its state-owned operator, Aramco, insists the country has proven reserves of slightly more than 261 billion barrels – a quarter of global reserves. Taking into account probable and possible reserves, that figure rises as high as 1 trillion.

But what if these numbers are wrong?

Belfast Telegraph