$500 a bbl oil?

I suppose nobody wants to hear more bad news today. But this article was posted this morning on CNN’s Money website:

“Indeed, Simmons isn’t the obvious candidate to be the bearer of bad news about oil. He’s spent his career working in the business, has lived in Houston for decades, and is such an industry insider that he helped edit the Bush campaign’s comprehensive energy plan in the 2000 election – the document that was ultimately more or less rubber-stamped by Vice President Dick Cheney’s infamous secret Energy Task Force. Over the past 35 years, his boutique investment bank, Simmons & Co., has helped finance and shape much of the country’s existing oil-services business. With profits gushing, you might expect him to be celebrating.

Not to mention that the 65-year-old banker doesn’t have the personality of a prophet of doom. He has a puckish wit, a relentlessly cheerful and enthusiastic demeanor, and the appearance of a rosy-cheeked cherub in a navy blazer. He routinely refers – in earnest – to his daily experiences as ‘tremendous fun.’ His closest business associates have a hard time recalling him ever showing anger. But when it comes to oil and gas, his message is downright scary.”

Read the full article here.

As the post where I first noticed this article on Technocrat said:

“Summary? The Saudis are lying about their reserves and new discoveries will not be able to keep up with increasing demand from China and India.”