The world is running out of oil. Peak Oil is a reality, all that is open to debate is how fast production will drop off, and how quickly the world will simply run out of oil. The lack of certainty is due to the fact that (as with everything else) we can’t trust the “official” numbers fed to us, with respect to either global production or global reserves.
Numbers supplied by Saudi Arabia’s corrupt monarchy have been regarded with deep suspicion, for many years, based on inconsistencies in the numbers themselves, and the high degree of secrecy within the Saudi oil industry. More recently; the massive conspiracy with respect to U.S. “shale oil” has now been exposed, with actual supply being as little as 4% of the fantastic “reserves” claimed by the Shale Charlatans.
What does it mean when we live in a world of diminishing (oil) supply, and seemingly inexhaustible (oil) demand? It means this is the classic “sellers’ market”. That is fact #1.
Fact #2 is the brazen admission by the U.S.’s puppet-president, Barack Obama, that the U.S. government (or rather its banker Masters) has been deliberately manipulating oil prices lower, as “part of its strategy” of economic terrorism against Russia. This is outrageous, on multiple levels.
1) The matter-of-fact manner in which Barack Obama acknowledged this market manipulation epitomizes the crime syndicate mentality of the U.S. regime, and the other puppet regimes of the West under the direct control of the One Bank. Absolutely no respect for the Rule of Law.
2) In a world of vanishing oil; it is recklessly irresponsible to manipulate oil prices lower, since under-pricing anything inevitably stimulates over-consumption. The fastest way to squander our remaining stockpiles of oil (obviously) is to put them “on sale”.
3) The fact that this fascist government now openly engages in unilateral acts of economic terrorism against other nations proves that internationally, the United States is now a pariah regime.
Equally outrageous is the lack of response to the reckless economic terrorism of the United States, specifically the lack of response by many of the world’s largest oil-producing nations. In particular; noteworthy for their absolute lack of response are the OPEC nations – and Canada.
What is the appropriate response of any oil-producing nation, upon learning that the U.S. is (deliberately) driving-down oil prices, effectively stealing the oil production of these oil-producing nations, and thus perpetrating its economic terrorism against them, as well? The response is as obvious as it is simple. Cut off supply.
Indeed, this was the entire raison d’être for the creation of OPEC: uniting Arab oil producers so that they gave themselves the option of “turning off the taps” if oil prices weren’t high enough. Clearly when a Rogue Regime publicly proclaims that it has manipulated oil prices 50% lower as a deliberate act of economic terrorism, then prices cannot be “high enough”.
Yet with the 21st century governments of most OPEC regimes now mere sock-puppets of the U.S.’s own puppet-regime, we have all the OPEC Puppets pretending they are powerless. Then there is Canada. Canada’s Prime Minister, Stephen Harper, has also been guilty of perpetrating economic terrorism, and it also involves the manipulation of oil prices.
The obvious difference is that Stephen Harper’s victims are his own people. It is Canadians who have been callously exploited with Harper’s treasonous “energy policy”. What is Harper’s policy on energy? Giving awayas much of it as possible, as fast as possible, to his own beloved Master, the U.S. government.
In a sellers’ market; Stephen Harper recklessly ramped-up production of Canada’s tar sands oil – the ‘dirtiest’ oil on the planet – and then immediately began giving away all this oil, to the U.S., at a 1/3rddiscount versus prevailing ‘spot’ prices (as much as $40/barrel below prevailing prices). The excuse given by the Harper regime for squandering Canada’s oil reserves is as inept as Harper himself.
The “reason” Canada’s oil is being sold for less than anywhere else on the planet is because (supposedly) there is a lack of refining facilities to process this particular type of crude. We know this is a lie. How? Because Stephen Harper (fortunately) doesn’t run Canada’s government all by himself. He has advisors.
What would have happened as Harper began recklessly ramping-up tar sands production? His advisors would have posed two questions to this Traitor. To whom are you going to sell all this oil? Where will it berefined?
When the Harper regime realized it had no answers (at all) to these questions, any honest government would have immediately adopted one or all of the following policies:
1) Lined-up all its customers for this precious commodity, in advance, with long-term contracts.
2) Ensured that it had constructed its own refining facilities, to eliminate the current, feeble excuse given by the Harper regime.
3) Scaled-back tar sands production until it had satisfactory answers to those two, ultra-obvious questions.
While the economic incompetence of Harper and his Conservative regime is legendary; not even the Conservatives could be so utterly clueless as to fail to ask themselves those two, obvious questions. And once realizing they had no answers to those questions; the appropriate policy responses are as obvious as the questions themselves.
Canada’s oil give-away (to the U.S.) is obvious treason, and it raises another obvious question. With the U.S.’s pariah government having knocked $50/barrel off of the price of oil, and with Canada previously selling its oil at the give-away price of roughly $60/barrel (i.e. before the U.S. economic terrorism); how much is the U.S. paying today for Canadian oil? Put another way; how much is Canada losing on every barrel of oil it gives-away to the U.S.? Is the U.S. paying anything, at all?
With tar sands oil costing between $60 – $100 per barrel to extract; Canada was already losing money on its tar sands oil before Barak Obama (and the bankers) launched their economic terrorism on the oil market. Apart from the obvious strategic reasons to cut-off Canadian oil production (until prices are once again at least quasi-legitimate); the Canadian economy cannot afford to lose this much money, giving away the world’s most-precious commodity. Harper’s treason has now descended into outright economic insanity.
Barack Obama’s brazen admission that the U.S. is perpetrating economic terrorism against (primarily) Russia, via attacking the global oil market, has revealed two things to the world. First it has shown that the U.S. has now publicly/officially adopted the philosophy of government-by-crime-syndicate (i.e. fascism).
Equally obvious; it has revealed the governments of the Puppet Producers for what they really are. These governments who are stewards of most of the world’s precious, remaining stockpiles of oil not only cannot be trusted to administer this responsibility in the best interests of humanity, these ultra-corrupt regimes cannot even be trusted to represent the interests of their own populations.
There are two (new) enormous crimes currently being committed within the global community. One of those crimes is the (latest) economic terrorism being perpetrated by the U.S. – meaning the latest economic terrorism perpetrated by its puppet-master, the One Bank.
The other, gigantic crime is the treasonous manner in which the Puppet Producers are (literally) “selling out” their own people. The economic terrorism of the U.S. is obviously the larger crime in terms of sheer magnitude. But the despicable manner in which the Puppet Producers are betraying their own people is arguably the worst of the two crimes.
CAM on Mon, 2nd Feb 2015 11:42 am
Well!! The suppositions and alleged motivations are probably all wrong. Nevertheless the outcome is probably correct!!
Dredd on Mon, 2nd Feb 2015 11:46 am
That must be why the fleets and terrorism follow the oil.
Plantagenet on Mon, 2nd Feb 2015 12:08 pm
I don’t see Russia cutting their oil production. Maybe Russia is the “economic terrorist” causing the oil glut?
rockman on Mon, 2nd Feb 2015 12:44 pm
“Nevertheless the outcome is probably correct!!” So true: the outcome of this latest terrorist activity: Today OPEC revenue (adjusted for inflation) is $510 BILLION compared to their oil revenue just 10 years ago of $260 BILLION per year. And then there are our poor Canadian cousins: oil export revenue today: $48 BILLION per year compared to $13 BILLION just ten years ago. BTW Canadian oil is currently selling for about the same inflation adjusted price as it was 10 years ago. As is OPEC production.
Funny: I don’t recall anyone pissing and moaning about the “crippled” revenue stream of the oil exporters 10 years ago. But given that oil prices had increased by 270% in the 6 years prior to 2004 I don’t know why anyone would. LOL.
I think it might be fair to say the OPEC countries and our supposed friends to the north have been terrorizing the US citizens and other oil consumers by attacking us with excessively high oil prices for much of the last decade.
And while we’re talking about economic terrorism lets touch on the subject of Canadians raping our NG industry. In 2004 we were selling them of 1 bcf per day for $6.20/mcf. Today we are selling them 2.3 bcf per day for $3.30 per mcf. If those bastards were paying us the same as in 2004 our companies would be receiving an extra $1.4 BILLION per year.
Honestly some of you folks need to get a grip and start thinking for yourselves instead of swallowing all this Kool-Aid rhetoric. Just look at the actually numbers and judge who has been f*cking who when it comes to energy pricing. LOL.
dissident on Mon, 2nd Feb 2015 1:05 pm
Dear leader Harper is both an idiot and a psycho. The tar sands syncrude giveaway is being offloaded on to the Canadian public. Harper and the rest of his ilk think that there should be no government and just corporate feudalism. So he is cutting “big bad” government spending on what the voters want and subsidizing the “precious” oil companies.
puchinno on Mon, 2nd Feb 2015 1:06 pm
First of all, Harper doesn’t control the oil sands. That is the realm of the free market system to which we and most of the western world adhere to. Second, if the prices are to low, then projects get scaled back or even cancelled. What a completely stupid rant this guy makes. This website is unfortunately devolving into total crap, with the odd good article thrown in just to try and retain it’s legitimacy. This article isn’t one of them.
GregT on Mon, 2nd Feb 2015 1:24 pm
Rock,
Yes, Stephen harper is a brilliant strategist, and we Canadians are robbing you Americans blind. Whatchagonnadoaboutit? After all, Canada is THE most powerful nation on Earth, and all that. 🙂
Davy on Mon, 2nd Feb 2015 1:25 pm
Rock, you forget how it is easy to like a bigger wallet and another story when the wallet is shy a few BIL. In any case good point Rock and all the more reason to piss on the extremist on both sides.
GregT on Mon, 2nd Feb 2015 1:26 pm
And also,
Now would be a very bad time to cause any ripples, I hear our submarine is almost ready to return to active duty.
Davy on Mon, 2nd Feb 2015 1:28 pm
Greg, will you Canadians raise an army and come liberate us from the banksters and Waltons? In fact I can be a local scout for you on your Missouri campaign not there is much to pillage around these rocky hills.
shortonoil on Mon, 2nd Feb 2015 1:54 pm
Why are oil prices going down? It called depletion you dam fool! The world pumped all the high quality oil, and what is left is a bunch of road tar, and camel pea; oil that no one wants, or can afford to pay much for. First it was the Saudi’s fault, and now its US government financial terrorism. Next in line is Mother Goose, and the Three Bears. Maybe Goldie Locks stole it?
But don’t worry the Canadians won’t be giving away their tar balls much longer. At these prices they will be giving away food stamps instead. Maybe the Chinese will show up to finance $45 oil that cost $80 to produce. They can ship it all back to China, and make Mattel Action Figures for the US. Obama needs a few more to finish out his collection!
rockman on Mon, 2nd Feb 2015 2:34 pm
Greg – “Whatchagonnadoaboutit?” I’m thinking we’ll make Harper a deal he can’t refuse: swap Florida for Alberta. that way we ‘t have to change our flag and y’all can stop freezing your butts off. LOL.
It will be interesting to see how much the cost of the oil sands develop will decrease. The cost to drill Eagle Ford wells will be coming down significantly in a few months if prices stay low.
Granted the dynamics have changed in a variety of ways but remember the first 1 million bopd of oil sands production was developed at an inflation adjusted oil price much lower then today. Profitability is a function of the oil price. It’s determined by the cost to reduce a bbl and what you sell it for. Some of the most profitable wells I ever drilled sold NG at a price only 1/3 of the current because my development costs were so low.
BC on Mon, 2nd Feb 2015 3:50 pm
Let’s not be naive. Canada is a province of Anglo-American (oil and rentier-financier) empire (and the militarist-imperialist corporate-state), whereas Alberta has become the largest toxic waste dump on planet Earth next to Fukushima, and a rather good likeness of the lunar landscape by now.
The cost (financial, economic, socioeconomic, ecological, and spiritual/psycho-emotional) of “the non-negotiable American Way of Life” is prohibitive, except for those who can afford it at the expense of the 90-99%.
The end game for oil-based global industrial civilization began as long ago as 1970-85 in the US in terms of cheap, easily accessible sweet crude oil production per capita, and now the world has entered the collapse regime as of 2005-08, but most of us don’t realize it . . . yet.
There are those of us who have paid a very high price for having anticipated current conditions some 7-8 to 14-15 years or more ahead of time. As such, what those of us still persisting perceive hereafter as likely, if not probable, can be said to be largely unspeakable in deed and scale, but not unpredictable nor unexpected were we in similar luxurious positions of influence and decision-making power, and we were required to choose between ourselves and the other 90-99 out of 100 unaware human apes.
Mark Ziegler on Mon, 2nd Feb 2015 4:13 pm
Frackers produced themselves out of business.
viewcrafters
redpill on Mon, 2nd Feb 2015 7:20 pm
Should the URL for this site be changed to peakoil.ru?
To retort, I’ll again ask that folks give a view to a documentary connecting the dots as to how Putin rose to power:
Putin’s Way
http://www.pbs.org/wgbh/pages/frontline/putins-way/
Bloomer on Mon, 2nd Feb 2015 9:28 pm
Breakeven cost to turn the gooey tar to oil is around 45 US dollars. The U.S oil shale producers will be the first to fail as they don’t have the advantage of a Canadian peso to help them offset some of their business pain.
Further, a shale oil well will deplete in just a few years whereas Albertastan has just scratched the surface of their gigantic tar pit.
The Keystone pipeline will go ahead, as we are now just at the beginning of hyper carbon emission and accelerating global heating.
Fulton J. Waterloo on Tue, 3rd Feb 2015 12:12 pm
I like the part about SQUANDERING our last reserves by selling them at a cheap price. Gonna buy me a “pickemup” truck…yeeeehaaaa!
GregT on Tue, 3rd Feb 2015 12:40 pm
redpill,
Again, Putin’s Way was a piece done by PBS’s Frontline based on a book written by Karen Dawisha, titled ‘Putin’s Kleptocracy’. It contains mostly re-edited content from the BBC and CBC. PBS, CBC, and the BBC are all government funded institutions. You are buying into the propaganda redpill.
Putin has an over 90% approval rating amongst the Russian population. Obama has a 43% approval rating among US citizens, and Harper has a 27% approval rating among Canadians. Our governments enjoy less than half of the approval rating that the Russian government does, yet you continue to lap up the propaganda from the side that clearly does not have the support of the majority of the people?
There are at least two sides to every story. To blindly follow one side of the story without exploring the other, seldomly reveals anything remotely resembling the truth. Putin is no more of a saint than any other politician/oligarch, but he is clearly doing something right for his people that our politicians/oligarchs are not.
Don on Tue, 3rd Feb 2015 2:06 pm
Damn Canadians, first they burn down our white house and our library, now they gouge us for their junk oil.
They sit there with their beady little eyes, acting so polite, they think we have forgotten because it was over 200 years ago… We will never forget.
GregT on Tue, 3rd Feb 2015 2:15 pm
“Damn Canadians, first they burn down our white house and our library, now they gouge us for their junk oil.”
Not oil Don. Bitumen. But shhhh, don’t tell all of your friends. US Canadians are even more beady eyed and shifty than you think. 🙂
me on Tue, 3rd Feb 2015 8:18 pm
We are not running out of oil OPEC is and is therefore driving down prices in order to buy in to North American resources for pennies on the dollar