America’s oil: Good to the last drop

…The Democrats want the president to stop adding to the strategic oil reserve, which is 97 percent full. So far the president has not budged. The Democrats figure that it could save Americans 5 to 24 cents per gallon. Their plan put forward in four congressional bills includes holding OPEC accountable for price fixing (HR 2264), cracking down on gas price gouging (HR 1252), repealing subsidies to oil companies, investing in renewables (HR 5351) and developing new mileage standards (HR 6).

During several of the pressers, the Democrats rattled their swords. They pointed out that the Saudis had reduced their oil output by 800,000 barrels a day since 2005. Then came the threat, saying that Congress would “block their, (Saudi Arabia, Kuwait and UAE), lucrative arms deals.” Of course Americans would be on the Democrats’ side on this one. Why should we sell arms to countries that are making record profits? The answer is two words: Russia and China. Having just returned from Sudan, it is clear that as soon as the United States opts out of oil production, then China is going to opt in. If that means the price of entry is arms sales, then China and Russia are going to “pay that price” and sell arms. The threat of no arms sales sounds great to the Americans watching the evening news, but it is short sighted indeed.


All of this saber rattling took place against the backdrop of Exxon Mobil releasing its quarterly profits, which are a whopping $10.25 billion for the quarter. The numbers look great for oil investors now, but there are clouds over the horizon, and the large investors are well aware of the darkening cloud cover.

That cloud is called Hubbert’s peak. M. King Hubbert predicated in the mid ’50s that the world was reaching peak oil production and that the United States would reach it by 1970. He was laughed at and disregarded. Hubbert was right, and one member of Congress has been the lone voice for Hubbert’s Peak and the implications that it brings. That member is Republican scientist Roscoe Bartlett from Maryland. As the lone wolf he has said, “You can’t pump what is not there.” This might explain why there is less oil being pumped from Saudi Arabia. They might be close to peak oil production. There was a stated increase in Saudi “oil reserves” about 10 years ago, but there is no data real data to back up this alleged “find.” Saudi Arabia going dry is a very scary situation for the economy and Middle Eastern stability, and cutting off arms sales isn’t going to change that fact.

WorldNetDaily