Peak Oil in Saudi Arabia?

Via Econbrowser, Stuart Staniford on more Wikileaks cables in the Guardian:

However, Sadad al-Husseini, a geologist and former head of exploration at the Saudi oil monopoly Aramco, met the US consul general in Riyadh in November 2007 and told the US diplomat that Aramco's 12.5m barrel-a-day capacity needed to keep a lid on prices could not be reached.

According to the cables, which date between 2007-09, Husseini said Saudi Arabia might reach an output of 12m barrels a day in 10 years but before then – possibly as early as 2012 – global oil production would have hit its highest point. This crunch point is known as "peak oil".

I always figured that when oil prices hit $140 a barrel in 2008, the Saudis didn't raise production because they couldn't.  That might not be right, but it seems closer to right than I could have known.  This is a major concern for the long-term viability of industrial ag, let alone for the auto culture of the US.