And the Band Played On

This article came out yesterday:

Iraq could have largest oil reserves in the world.

"Iraq dramatically increased the official size of its oil reserves yesterday after new data suggested that they could exceed Saudi Arabia’s and be the largest in the world. The Iraqi Deputy Prime Minister told The Times that new exploration showed that his country has the world’s largest proven oil reserves, with as much as 350 billion barrels. The figure is triple the country’s present proven reserves and exceeds that of Saudi Arabia’s estimated 264 billion barrels of oil. Barham Salih said that the new estimate had been based on recent geological surveys and seismic data compiled by “reputable, international oil companies . . . This is a serious figure from credible sources.”

Amazing how Oil Bulls ignore any evidence that contradicts the fundamental basis of their argument for higher prices. So basically they will disparage the source of this information. This is what they will say:

1) This guy doesn't know what he is talking about, he probably hasn't left the Green Zone in years.

or

2) Even if he did know what he was talking about, it would take years for the production to come on line.

Yet I keep hearing that the price keeps going up because the market has doubts about the long term supply of oil. Certainly this discovery will go a long way toward solving those long term concerns on supply.