We recently reported that the University of Uppsala in Sweden warns that in ten years, oil supplies will drop to disastrously low levels. Now The Financial Times reports that Royal Dutch Shell says it has much lower reserves that it previously stated. On analyst calls this cut "staggering."
Critics say Shell has known its oil reserves were 20% lower than their original estimate for a long time and the company faces investigations in the U.S. and Europe. This means that gas prices will rise at a time when we're fighting a war in the Middle East that requires a lot of fuel. Also, the rise in anti-American fundamentalism may cause some Middle Eastern countries to restrict their output. The Saudis also say they have fewer gas reserves than earlier reported estimates, and U.S. oil companies still do not feel safe venturing into Iraq's oil fields.
Shell's miscalculation was uncovered by outside auditor Ryder Scott, who says Shell used technology which was insufficient to determine the volume of its oil reserves. Shell CEO Malcolm Brinded calls the error "disappointing and embarrassing."
You heard it here first: If you drive an SUV or large truck, sell it and buy a small sedan or hybrid car asap! In a few years, gas prices will rise so high you won't be able to give these large vehicles away.
Why drive? Stay home and read a good book! You won't find better books at better prices than on our latest sale?and you can save on gas by buying them over the internet.
NOTE: This news story, previously published on our old site, will have any links removed.