Saudi oil production in trouble

IamTheRealMike writes: As one of the worlds most prolific producers of oil, Saudi Arabian production is of vital importance to maintaining our standard of living in the west. A new analysis from Stuart Staniford appears to show large, fast declines in production throughout 2006 that are uncorrelated with price, world events or OPECs own announced production cuts (in fact, no evidence for those cuts occurring is found at all). Given that the apparent steep decline (8%/year) matches the rates seen in other areas where horizontal drilling and water injection were used, and high prices give the Kingdom every incentive to produce, is this the beginning of the end for Saudi oil?