Saudi oil well dries up … If Citigroup is right, Saudi Arabia will cease to be an oil exporter by 2030, far sooner than previously thought. A 150-page report by Heidy Rehman on the Saudi petrochemical industry should be sober reading for those who think that shale oil and gas have solved our global energy crunch. –
Oil has always been manipulated. All you need to know about this is the following:
There’s a dollar sign behind everything, nothing is accidental. Are you getting ripped off? Yes you are and so am I. Scarcity is the trick. Please listen carefully copy download upload share and teach people about this mega scam. It’s another crime against humanity. – Leroy Fletcher Prouty, Jr. video intro, YouTube
In a YouTube video, Leroy Fletcher (now deceased but a former Colonel in the United States Air Force) explains how his research led him to understand that the phrase “fossil fuel” was a deliberate invention of the Rockefeller cartel.
Prouty discovered that the phrase “fossil fuel” was developed in the late 1800s by John D. Rockefeller and those associates working for him.
This group came up with the name to emphasize that oil could run out at any time. Rockefeller sent his associates over to Europe to attend a conference attempting to define “life” via its chemistry.
As the composition of oil has some of the building blocks of life, Rockefeller and his group seized on the parallelism to proclaim that oil was a “fossil fuel.” But it was a deliberate invention designed to promote oil scarcity.
And the promotions continue. The famous technocrat M. King Hubbert created a model predicting so-called “Peak Oil” and this article, like many others, only reinforces the idea that the discovery and processing of light, sweet crude has peaked and is now on the decline.
Hubbert was also part of the mid-20th century technocrat movement and may have an ulterior motive for producing his model. He believed in the technocratic approach, which was promoting “expert” management of the economy. He needed an argument – a crisis – to justify his management ideas.
Here’s some more from the Telegraph article excerpted above:
I don’t wish to knock shale. It is a Godsend and should be encouraged with utmost vigour and dispatch in Britain. But it is for now plugging holes in global supply rather than covering the future shortfall as the industrial revolutions of Asia mature.
The basic point – common to other Gulf oil producers – is that Saudi local consumption is rocketing. Residential use makes up 50pc of demand, and over two thirds of that is air-conditioning.
The Saudis also consume 250 litres per head per day of water – the world’s third highest (which blows the mind), growing at 9pc a year – and most of this is provided from energy-guzzling desalination plants.
All this is made far worse across the Gulf by fuel subsidies to placate restive populations.
The Saudis already consume a quarter of their 11.1m barrels a day of crude output. They are using more per capita than the US even though their industrial base as a share of GDP is much smaller.
The country already consumes all its gas. (Neighbouring Kuwait is now importing LNG gas from Russia).
While this all sounds most alarming, it ought to be noted that there are other studies that indicate the world is swimming in energy, and oil and gas in particular.
Not long ago a study from the Institute for Energy Research pointed out the following:
The answers lie in the data. In 1980, official estimates of proved oil reserves in the United States stood at roughly 30 billion barrels. Yet over the past 30 years, more than 77 billion barrels of oil have been produced here. In other words, over the last 30 years, the United States produced more than two and a half times the proved reserves we thought we had available in 1980.
Thanks to new and continuing innovations in exploration and production technology, there’s every reason to believe that today’s estimates of reserves are only a fraction of what will be produced and delivered tomorrow—not only here in the United States, but across the entire North American continent.
Some may believe the above is wildly optimistic. But facts are stubborn things. The US has produced in the past 30 years more than two-and-a-half times estimates.
And that just scratches the surface of what’s actually available. Here’s something from the Internet website Squidoo.com.
Hello fellow Americans Here’s some interesting information and some important and verifiable facts:
About 6 months ago, the writer was watching a news program on oil and one of the Forbes brothers was the guest. The host said to Forbes, “I am going to ask you a direct question and I would like a direct answer; how much oil does the U.S. have in the ground?” Forbes did not miss a beat, he said, “More than all the Middle East put together.”
The U. S. Geological Service issued a report in April 2008 that only scientists and oil men knew was coming, but man was it enormous! It was a revised report (which had not been updated since 1995) on how much oil was in this area of the western 2/3 of North Dakota, western South Dakota, and eastern Montana.
The Bakken is the largest domestic oil discovery since Alaska’s Prudhoe Bay, and has the potential to eliminate all American dependence on foreign oil. The Energy Information Administration (EIA) estimates it at 503 billion barrels. Even if just 10% of the oil is recoverable. At $107 a barrel, we’re looking at a resource base worth more than $5.3 trillion.
“When I first briefed legislators on this, you could practically see their jaws hit the floor. They had no idea.” says Terry Johnson, the Montana Legislature’s financial analyst. “This sizable find is now the highest-producing onshore oil field found in the past 56 years,” reports The Pittsburgh Post-Gazette. It’s a formation known as the Williston Basin, but is more commonly referred to as the ‘Bakken.’
It stretches from Northern Montana, through North Dakota and into Canada. For years, U. S. oil exploration has been considered a dead end. Even the ‘Big Oil’ companies gave up searching for major oil wells decades ago. However, a recent technological breakthrough has opened up the Bakken’s massive reserves.
We now have access of up to 500 billion barrels. And because this is light, sweet oil, those billions of barrels will cost Americans just $16 PER BARREL! That’s enough crude to fully fuel the American economy for 2041 years straight …
It is always in industry’s interest to exaggerate scarcity. And sometimes there is truth to these claims. For instance, a new research report by Alexei Medved, entitled “Russian Market Declines on Risk-off Sentiment” gives us a fairly clear perspective on market risk. you can see the article here and an excerpt below:
Since my May column, the Russian market got hit badly. The popular US$ denominated RTS index fell 10.2% from 1489 to 1337. The developing financial crisis in Europe pushed investors into the “risk-off” mode, hence all risky assets were sold. This led to strong selling pressure on the Russian market as it is seen as high beta.
Generally, as savvy investors we should be careful of accepting either exaggerated optimism or pessimism at face value. And because of its geopolitical implications that especially goes for oil and gas.