I just read this on Mike Shedlock's blog, (Mish's Economic Trend Anlysis) and was astounded that the folks over in the Middle East just started talking about this publicly.
Saudi Arabia's Shura council (parliament) will hold a series of meetings over the next two weeks to discuss a controversial proposal by a key member to curb oil production to save reserves for better prices, Saudi media reported. The council will listen to a report by deputy chairman of the Shura water and public utilities committee, Salim bin Rashid Al Marri, who will argue for cutting crude supplies to maintain the Kingdom's underground reserves.
"Marri will seek to persuade council members that the oil production must be linked to the country's actual development needs not the needs of foreign consumers," Alriyadh newspaper said in a report from the capital Riyadh. "He will tell the Council that keeping sufficient oil quantities underground is a good investment for the future as oil prices will then be higher…he will argue that this will be better than producing more oil and generating financial surpluses on the grounds these surpluses are causing inflation."
"The price of oil under ground is actually higher than its current market price because it will become a unique commodity by time and demand will continue to rise because of a steady growth in the world's population," Marri told Alriyadh.
"The level of oil production in Saudi Arabia must be linked to the country's actual development and financial needs not to market prices and the need of foreign consumer. It is not wise to sap this resource just to satisfy the demand of foreign markets.
The original article can be found here.
Folks, one of the most difficult things to remember is that the shit over in the middle east just isn't our oil. It belongs to the people there, not to us. The greedy bastards in the oil companies pumped all of our oil out a long time ago. Until the 1970's we held the same position that Saudi Arabia currently holds, we were the largest exporter and the swing producer. Standard Oil and the greedy fucking capitalist swine that ran the oil companies sucked all of our oil to build their mansions. Now they have their mansions, the ownership of the majority of the US government, and their mercenary guards (read here "Blackwater") and the people of the US have bupkis.
Oil is going to get scarier and scarier over time. The folks who are sitting on top of it are beginning to realize that they are in the catbird seat, and they are going to do what anyone would do in that instance, squeeze it for everything it is worth. It is only common sense that you ration a valuable resource. That is just common sense.
Oil is going away. There is less and less of it every year, and the need to control it will become greater and greater. We have built a military specifically around the idea of protecting the oil supply. Do you think for a minute we won't use it?