Oil Concerns & Prophecy

Steven LeBlanc

News stories over the past month confidently assert that America’s energy concerns may be over. We are told that America’s recent surge in oil production could mean that the U.S. could produce more oil than Saudi Arabia by 2020:
http://www.usatoday.com/story/money/business/2012/10/23/us-top-oil-producer/1652937/

But wait a moment– what is often not reported is the world’s biggest oil fields are in decline. This will put pressure on world oil markets in the future.

Three of the world’s biggest oil fields Ghawar in Saudi Arabia, Cantarell in Mexico and Burgan in Kuwait are older oil fields experiencing sizeable declines in their ability to produce oil.

No country is more important to the world oil market than Saudi Arabia. The kingdom produced roughly 9.8 million barrels of crude a day last month. The world consumes about 88 million barrels of oil per day. Saudi Arabia is the world’s only producer with significant excess capacity; it has played a pivotal role in alleviating temporary supply disruptions.

In recent years about one out of every 20 barrels of oil produced worldwide has come from the massive Ghawar oil field in Saudi Arabia. The Ghawar oil field is truly massive. Stretching for more than 150 miles beneath the desert, it is the largest known deposit in the world. It produces two times as much oil as any other field.

That field’s ability to produce oil has peaked out. Finding new monster oil fields filled with easy-to-extract oil is extremely difficult. Many of the largest recent discoveries are under miles of water and seabed. The effort required to tap these fields will involve huge inflows of capital and years of drilling.

As a nation, we use 19.2 million barrels of oil every day. We produce just 7.9 million barrels per day (mbd). Oil forecasts tell us that Saudi Arabia — and much of the Middle East — oil exports will drop rapidly over the next 7 years as their population growth swells.

So let us understand the bigger picture: the surge of domestic oil production in America is only partially offsetting current decline rates of the largest oil fields in the world. Oil prices may decline in America, but that decline will not be permanent.

We keep our eyes on the world of oil. Oil may be used as a weapon along with other weapons that “pushes” or provokes a European Beast power to move its headquarters into the Middle East. Here we are told that “the king of the South” will push against “the King of the North”—this pushing (provocation) will cause the Beast power to invade the Middle East where “many countries will be overthrown.” –(See Daniel 11:40-44).

The world is so heavily dependent on oil and petroleum products—oil is bound to play a role –as nation lifts its hand against nation– as prophesied in Matthew 24:7. Keep your eye on oil and how it is used by nations to exert political influence.

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