It’s back to Peak Oil!
This story came out from the G-9 meeting at the end of last month, but I only picked it up today.
This is highly, highly significant because it scuppers Joe Biden’s plans to increase production but it puts Peak Oil back on the table.
The UAE and Saudi Arabia will not increase production because they CAN’T.
I have known for some years that Saudi Arabia is past peak production and has for some years, something that would be known to very few.
I shall be posting supporting material on this.
Energy Armageddon: Saudi Arabia begins record imports of Russian oil – Stocks are running out!- Macron to Biden: “I have bad news for you” (vid)
S.Arabia also reduced the delivery of crude to Chinese refineries!
Several reporters caught a brief conversation between Biden and Macron on camera at the G7 summit, where Macron told Biden about Saudi Arabia’s oil capacity and how it will not increase production anytime soon.
Saudi Arabia and the UAE, which are both oil-rich nations, cannot significantly boost their crude production any time soon, French President Emmanuel Macron was heard telling his American counterpart Joe Biden on Monday.
The leaders were considering ways to reduce Russia’s oil revenue without raising energy prices any further.
On the sidelines of the Group of Seven (G7) summit in southern Germany, reporters caught the brief conversation between Biden and Macron on camera.
Macron told his US counterpart that he was on the phone with Emirati Leader Sheikh Mohammed bin Zayed Al Nahyan. “He told me two things. ‘I’m at a maximum [production capacity]’. This is what he claims,” Macron said.
“And then he said [the] Saudis can increase by 150 [thousands barrels per day],” the French president said. “Maybe a little bit more, but they don’t have huge capacities before six months’ time .
Biden was counting on Arab nations to produce more oil but a few hours ago French President Macron was overheard telling Biden that the United Arab Emirates is at max capacity & the Saudis can’t produce much more. It appears to be a direct appeal to Biden to produce more oil. pic.twitter.com/vRWJVpn3El
— Michael Shellenberger (@ShellenbergerMD) June 27, 2022
According to the UAE’s current OPEC+ production baseline of 3.168 million barrels per day, Suhail Al Mazroui, the energy minister for the Emiratis, clarified on Twitter that “the UAE is producing near to our maximum production capacity.” He declared that until the end of the year, the Gulf state will remain “committed” to the same baseline.
While simultaneously attempting to prevent further increases in domestic energy prices, Western countries have been seeking for ways to limit Russia’s revenue from the oil trade. According to Reuters, Saudi Arabia and the UAE were seen to be nations with spare capacity to increase oil production in order to lower prices
The G7 nations—the United States, Canada, Britain, France, Germany, Italy, and Japan—agreed on Tuesday to consider limiting the price of imported Russian oil. The leaders of the group released a statement saying, “We invite all like-minded countries to consider joining us in our actions.”
Wide-ranging sanctions on Russia were implemented after Moscow began its military campaign in Ukraine in late February by a number of nations, including EU and NATO members.
Following Ukraine’s failure to adhere to the provisions of the 2014 Minsk agreements, and Moscow’s eventual recognition of the Donbass republics of Donetsk and Lugansk, Russia launched an attack on the neighboring country in late February. The protocols, which were negotiated by Germany and France, were intended to grant the separatist regions special status within the Ukrainian state.
Since then, the Kremlin has urged Ukraine to officially announce itself a neutral country that will never ally with the US-led NATO military bloc. Kiev maintains that the Russian offensive was totally unprovoked and has refuted suggestions that it intended to use force to retake the two republics.
Two top OPEC oil producers, Saudi Arabia and the United Arab Emirates, can barely increase oil production, French President Emmanuel Macron on Monday said he had been told by the UAE’s president.
Saudi Arabia and the UAE have been perceived as the only two countries in the Organization of the Petroleum Exporting Countries (OPEC) with spare capacity to boost global deliveries that could reduce prices.
Macron is overheard warning Biden that UAE and Saudi Arabia cannot pump more oil as EU scrambles to replace millions of barrels from Russia that it vowed to ban by 2023
- Macron pulled Biden aside for a chat during G7 leaders’ summit in Germany
- He was caught warning the UAE and Saudis cannot replace shortfall in oil that will be caused when EU ban on Russian barrels comes into effect in 2023
- Biden’s security adviser then interrupted to warn the two men to move inside
- Macron’s words will spark fears of further energy and fuel price rises in winter