It's also interesting to evaluate these comments in light of the recent dramatic increase in Saudi drilling efforts, as described by Jim Brown on April 10:
We also heard just over a week ago from Halliburton that Saudi was upping its rig count from 92 to 118 with the majority of those new rigs going to the Manifa field. However, that news prompted even more concerns because the Manifa oil is heavy, sour crude. Why would you escalate production in heavy crude if the real problem facing the world right now is light sweet crude?
And, as if that weren't curious enough, a few weeks ago Bloomberg reported that Saudi Arabia plans to invest $100 billion in renewable energy sources. Jim Brown again:
In theory the country with the largest readily available oil reserves in the world is suddenly considering spending $100 billion on alternative energy so they will have more oil to export. Does that strike anyone else as strange? Wouldn't it be a lot cheaper to just punch a few more wells and produce more oil from the billions of barrels they have in reserve?