BELIEVE THIS GUY?

Alt Energy Not the Answer, Says Saudi Oil Minister; Al-Naimi cautions that green boosterism could inhibit vital oil investment
Christopher Helman, February 11, 2009 (Forbes)

"Saudi Arabia's oil minister, Ali Ibrahim al-Naimi…issued a warning against overzealous boosterism of non-fossil fuel energy sources in a time when oil prices have become "unsustainably" low.

"‘Promoting alternatives could chill investment in the oil sector…It would be a nightmare if alternatives don't meet expectations.’"

What part of peak oil don't you get? (click to enlarge)

"That's because meeting global energy needs requires constant investment on a scale unmatchable by economically uncompetitive sources like solar, wind and biofuels…"

"No part of that global energy system is more massive than Saudi Arabia's. The kingdom produces some 8 million barrels of oil a day and provides a vital supply cushion in times of geopolitical stress. Policy is to maintain 2 million bpd of production capacity that Saudi Aramco can turn on at nearly a moment's notice. Al-Naimi stated that this year, spare capacity will reach 4.5 million bpd upon completion of the Khurais project…

"But Saudi Arabia's appetite for more mega oil investments could fade with sustained lower oil prices. Already, for 2009, lower oil revenues have pushed the Kingdom into deficit spending…he indicated that today's price of $39 a barrel is too low. The right price, he said, is low enough to facilitate global economic growth but high enough to incentivize development of not just marginal oil and gas fields but even renewable energy sources."