Peak Oil roundup – Iraq reserves and Big Oil money

Iraq claims more reserves than Saudis

Iraq has upped its oil reserve claims to 350 billion barrels, well ahead of Saudi Arabia’s 264 billion barrels.

Right. Mark this with the same truthfulness level of any other statement out of the government of Nouri al-Maliki in the past year.

Oil majors spend $100 billion to drill

Major oil companies will spend that much this year in their worldwide hunt for oil. Non-OPEC supply will account for only about 20 percent of global production increase.

That’s why futures markets are betting oil at $120/bbl or better for the next eight years, and even that is wildly optimistic.

Of course, the article is right on the head-butting between Big Oil and OPEC members. But, as OPEC members (that’s you, Hugo Chavez) hit harder-to-produce, harder-to-refine heavy/sour oil, something will have to give. You can’t charge $150/bbl for oil you can’t produce or refine.

Oil breaks $130

Need I say more?

Meanwhile, although the poll I wrote a week or two ago about expected Labor Day gas prices threatens to become out of date, give it your best shot.

Free polls from Pollhost.com

By Labor Day, oil prices will be ....

$125/bbl $130/bbl $135/bbl $140/bbl $145/bbl $150/bbl or more