Crude Oil Price Bubbleomics Impact on EP Valuations

By Andrew Butter, The Market Oracle:

The news is that Peak Oil didn’t come to town just yet, at least not according to the 2011 world oil production reported in the latest BP Statistical Review of World Energy.

That’s shown here along with lines for America, Canada, Saudi Arabia and other GCC countries (UAE, Qatar, Kuwait and Oman) on the right hand scale, in 2011 together all those places accounted for 37% of world production.

So the peak wasn’t in 2005 like Dr. Campbell predicted or even in 2006 which is what the IEA said last-year. It may turn out to have been in 2011 but we are going to have to work through 2012 to find that out, or even longer, depending mainly on how the European experiment with getting to work on donkeys plays out.

From the chart it looks like Saudi Arabia is not such a big swinger as they were in the 1970’s and 1980’s. Nowadays they and the other GCC states are just milking that cow for all she is worth while the good times roll.

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