Saudi provides realistic outlook on energy future

Peak oil predictions – including that dreaded day when the maximum rate of extraction is reached, after which the rate of production enters decline, leading to depletion of reserves – are back.

Unlike some previous forecasts, recent reports are more sober.

The debate on output highlights the Saudi government’s increasing calls for a more “equitable” oil pricing level at US$75 a barrel. This would encourage continuous investment in this vital energy sector, while at the same time ensuring that peak oil thresholds are pushed back.