Monday, December 07, 2009
Inflation of Oil and Gas Reserves
No doubt everyone is aware that oil and gas reserve figures have been inflated. Best known are perhaps the pumped-up figures of OPEC countries, notably Saudi Arabia. And the recent IEA whistleblower announcement made a big splash — when and where it was reported. We think of inflating reserve figures as being intentional, but a posting at the Resource Insights blog throws new light on an area that is rarely visible to the general public. From this explanation it is clear that inflation can also occur as a result of the way the system works. The post is a bit long, but well worth the time.