Recently, Saudi Aramco, the world largest oil exporter, has acknowledged that Ghawar, the world largest oil field, is in decline. The news went mostly unnoticed except in the specialised media. OK, so the Saudi have a bit of bother, so what? In fact, this piece of news is extremely important. Previously the oil world had been led to believe that Ghawar was producing over 5 Million barrels/day (Mb/d). As part of its fund-raising, Aramco has disclosed that it is in fact down to 3.8Mb/d.
THE END OF THE OIL GIANTS: And What It Means
GUEST POST: By Dr. Louis Arnoux
The meaning of this news snippet takes a bit of explaining. What the specialised media did not emphasise is what follows:
When giant oil fields go into decline, they usually decline abruptly.Ghawar’s decline is ominous. It was discovered in 1948 and until recently represented about 50% of the oil crude production of the Kingdom of Saudi Arabia (KSA). Ghawar is representative of some 100 to 200 giant oil fields. Most of them are old. The most recently discovered giants are of a diminutive size compared with those old giants.