April 23, 2011
Econbrowser
Analysis of current economic conditions and policy
One of the key questions in assessing the effect of the Libyan conflict on world oil prices was the extent to which an increase in Saudi production would offset some of the lost output from Libya. Now we know the answer, and it's not reassuring.
READ THE FULL ARTICLE HERE
A comment to the original article includes a link to a fascinating graph showing 1962-1982 (20 yrs) Texas oil production (bottom and right axes) compared with 1995-2015 (20 yrs) Saudi Arabia oil production (top and left axes):
The inescapable conclusion is that Saudi Arabia passed its peak oil production in 2005, and can no longer function as swing oil producer, compensating for production shortfalls of other producers.
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