Tuesday, May 20, 2014

peak oil rethunk 3


I certainly doubt there is any grand conspiracy afoot to suppress unconventional oil formation theory. I’m sure that geologists subconsciously battled any interpretation contrary to their conceived notions and merely found the facts they needed, as have far too many scientists through the ages. And I seriously doubt that the oil companies or their banker backers knew of abiotic oil formation. As is the case of far too many specialists, they don’t seek any information outside their specialties. To a barber, you always need a haircut. To a banker, money or credit creation always solves problems and to a oil company you can profitably find oil by repeating the same explorations of the last hundred years. I also don’t automatically assume Russian scientists are immune from the same flaws American ones have. What I believe is that IF abiotic formation theory seems far more plausible than before, and that is all this is- an increase in probability of another theory making far more sense, then it behooves us to fine-tune our own theories of what the future holds. For that, you’ll need to wait for the forth and last part of this article. For now, a revisit of the last hundred years of the oil wars.


Before, it seemed that the US empire and its banker financiers ( no empire becomes ascendant without finances, so it seems inescapable the state must eventually cede some or too much control. Surely, no one here doubts that we’ve turned over the control tower to the Federal Reserve by now? ) were interested in keeping the oil spigots full on to keep growing the economy. A strong economy means a strong empire. But part and parcel to that, unnoticed by myself until perusing the book this article is based on, when our industrial machine was eclipsed we needed to turn to not just high flows of oil but more importantly to more profitable oil. Financialization of the economy didn’t start after the 70’s oil shocks in response to industry moving offshore. It started by pushing the remaining uncompetitive industrial sector out by artificially manipulating oil prices higher. The first oil shock was orchestrated by Kissinger et all, and middle eastern oil that cost under a buck to pump ( hence shutting down more domestic production- which according to Endahl was why US production peaked in 1971, not because Hubbert was correct ) was sold for increasing more money to consumers. Yes, Saudi Arabia made billions, but so did everyone else. And from then on, wars were started to keep oil prices high by artificial scarcity. We played games with the Iranians to provoke them into taking hostages, then backed both sides in the Iran-Iraq War to take a huge chunk of oil off line ( as well as backing the Afghan-Russian War to bleed the Soviets-then later we opened the Saudi spigots to bankrupt the Russians which in the long run took far more oil off the market as their production fell due to economics ). Then we tricked Iraq into invading Kuwait, again to artificially withhold oil from the market. Most of our orchestrated former Soviet areas revolutions were about pipelines or denying Russian control of oil areas.


The Iraq invasion took their oil off line to a large degree. It is about not only controlling oil areas, but also both denying other nations access AND keeping oil prices high to insure profits and economic growth. The banks, imperial rulers and the oil companies aren’t concerned how much oil is left, so to them abiotic or biotic oil origins are irrelevant. They merely are concerned with controlling and profiting. To the individual, it should matter, as our future is directly tied up in the answer. More next article.


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  1. oh,great hairy one,please amuse yourself with my meager meanderings.Imagine yourself as an oil company.You approach your banker buddy for a loan to drill a new well,as you'd never risk your deep pocket money.The banker is hesitant,as he just read about peak oil.It has to eventually run out,right? Why invest in a short lived well? Well,you just claim,no,oil is self made,it grows like a weed,never ending! You get a loan,the banker gets his share,and everyone is happy....til it runs dry!

    1. But hasn't frack oil proven the banks will risk short term supply?

    2. so they make a short term loan,or higher rate?

    3. Only because the banks are too big to fail and knows the government will bail them out of any bad loans.

      Idaho Homesteader

    4. Make a bad loan out of credit-no cost. Collect interest. Government bails out bad loan, collect principle plus interest from government that took a loan to pay the bad loan. My God! To be a central banker.