Leaked Cables Reveal US Thinks Saudi Oil Reserves May Be Overstated

Posted by timothy on Thursday February 10, 2011 @08:32AM from the let-prices-adjust-to-reflect dept.

Mr.Intel writes with this excerpt from a UPI report which may interest those of you with cars, electricity, items made of plastic, etc: "Estimates of oil reserves in Saudi Arabia are overstated, meaning crude output could peak within the next decade, leaked US diplomatic cables reveal. Washington fears Saudi Arabia overestimated its oil reserves by as much as 40 percent and the kingdom can't keep enough oil flowing to control prices, US diplomatic cables obtained by WikiLeaks and published by The Guardian newspaper in London reveal."

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Re:Thank goodness for Canada by Man+On+Pink+Corner · 2011-02-10 11:24 · Score: 5, Interesting

To quote Dogbert, your comment more or less says "Hey everyone, I don't understand what fungible means."
Oil isn't really fungible, if you're thinking long term. The oil under our own (US) territory may have the same nominal value, but it's a lot more valuable to us than the oil underneath Saudi territory.
What is often derided as America's "dependency" on foreign oil is actually a rare example of smart politics: in a world where supplies are declining, it's best to burn the bad guys' oil first.