What's one energy word investors -- and oil/gasoline users -- should monitor?

Ghawar? That's right Ghawar -- a term you don't hear bantered about in the popular press or by major media outlets, but one that is pivotal to the health of the U.S. and global economies.

Located in Saudi Arabia, Ghawar is the world's largest conventional oil field. Oil's price has recently retreated from its latest climb to the stratosphere on slowing economic global growth concerns, but that pull-back, barring a financial calamity, is expected to be temporary -- at best lasting a year or two. Oil closed Friday up $6.67 to $104.55 per barrel. Oil hit a record high of $147.27 per barrel in July.

Oil's price is expected to resume its ascent when both developed and developing world growth return to normal GDP growth rates. Ghawar's significance? There has been chatter that the Ghawar oil field was beyond optimum; i.e., that its production had peaked.

Saudi Arabia has categorically and repeatedly rejected any contention that Ghawar's production has peaked. However, Saudi Arabia does not release field-specific production data.

Who provides the best analysis of Saudi oil production? Dozens of research firms abound, but the view from here argues that data provided by Cambridge Energy Research Associates and the International Energy Agency get high grades for accuracy.

Continue reading Keep your eye on a field of significance: Ghawar

Keep your eye on a field of significance: Ghawar originally appeared on BloggingStocks on Sat, 20 Sep 2008 15:40:00 EST. Please see our terms for use of feeds.