A couple of weeks ago wikileaks docs showed how Saudi Arabia, the world’s largest oil exporter had overstated their reserves by 40%, so their production numbers are of great interest. The repercussions of not only a peaking SA but the speed in which their internal demand is growing and choking off exports are somewhat alarming. It is telling that countries are keeping more oil for themselves despite brent crude now being at a high of $102 a barrel.
“OPEC’s oil exports fell 2 percent in December from a month earlier as Saudi Arabia, the world’s largest exporter, reported a decrease of 4.9 percent. Total world output fell 14 percent in December from a month earlier to 55.5 million barrels a day, the lowest since 2002, mainly due to a drop in non-OPEC production, particularly in Latin America.”
We can’t all be net importers. Amongst other things, the chart below gives you an idea of why Egypt ran into financial problems and the government decided to cut fuel and food subsidies, resulting in a revolution.