Analyst Warns of Saudi Oil Dropoff

Simmons once was viewed in the petroleum industry as an alarmist for his projections about declining energy supplies, but many analysts now agree that high prices and tight supplies are here for the foreseeable future....

Published: 12-Oct-2004

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Saudi Arabia, the world's safety valve for oil, may soon lose its ability to make up production shortfalls from other countries.

That's the warning delivered in Denver on Monday by energy analyst Matthew Simmons.

Saudi Arabia's presumed ability to bring more oil to market is often mentioned as the antidote to record high prices for oil and tight supplies.

But Simmons said prolific Saudi oil fields show signs of peaking and then gradually declining. Simmons, chief executive of Houston-based energy investment banker Simmons & Co. International, spoke to the Desk & Derrick Club of Denver, a petroleum trade association.

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