We cannot drill our way out of this oil crisis. Since 2000, oil companies working in the U.S. have doubled the number of wells drilled per year.
Although increased drilling has added new oil to the nation's supply, it has not done so fast enough to offset the terminal decline of existing fields.
We are going to have to import more of our oil. Period.
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THE most important statement made last week came not from Vladimir Putin or George W. Bush but from Ali Naimi, Saudi Arabia’s shrewd oil minister. Naimi predicted that crude prices would stay between $40 and $50 throughout 2005. For the last two years Opec’s official target price has been $25. Naimi’s statement signals that Saudi Arabia now believes that current high prices are not a momentary thing. An Asian oil-industry executive told me that he expects oil to hit $75 this decade.
