bb
2008-03-19 13:55:13
Even though the Saudis may have all those “reserves” in the ground, that doesn’t mean they can just start producing more tomorrow. It doesn’t work that way. The oil is trapped in rock. Only so much can be pumped or flowed at any given time. And time it takes…to produce reserves. Further, the term Reserves in the oil business doesn’t mean that a producer is “holding” back for later. Sure, they might could increase daily output by some incremental measure but only by a small amount. It’s not like a dam whereby opening the floodgates increases flow. Most news writers simply don’t understand the basic concept of how oil is produced.
