Oil prices crash 27% and counting, as the new oil wars begin, when Russia decided not to give in to Saudi Arabia and OPEC’s request to cut down production by 1.5 million of barrels per day.Continue reading Oil Wars Between Russia & Saudi Arabia May Destroy U.S. Shale Oil Industry Instead
Russia has been collaborating with many African countries on the “peaceful atom” for quite some time. But Western terror efforts have effectively retarded the African march towards 21st Century development and progress. With a powerful ally, Africans are now assured of their rightful place in the sun.Continue reading Russia is Set to Welcome Africa to Nuclear Age
Ahead of this year’s Munich Security Conference, due to begin on February 14th, its chairman Wolfgang Ischinger praised what he called President Putin’s “method” concerning security-issues in the Middle East.Continue reading Soleimani Fallout Continues to Produce Diplomatic Dividends for Russia
The American obsession with Iran is about oil and natural gas. If these two resources had been absent, it is hard to imagine such an intense American focus on the country from the time of a U.S. Central Intelligence Agency-backed coup of Iran’s elected government in 1953 to today. The Foreign Policy magazine piece linked above is based on declassified CIA documents and summarizes the coup this way: “Known as Operation Ajax, the CIA plot was ultimately about oil.”
By Kurt Kobb | Resourceinsights.com
This should come as no surprise. Iran was an oil power back in 1953 and it remains one today. Iran is presumed to have the third largest oil reserves in the world and the second largest natural gas reserves. Even if the numbers cited are somewhat inflated, Iran’s reserves are not small, and the country is likely to play a large role in world energy markets for many years to come.
The recent escalation of tensions between the United States and Iran because of the U.S. assassination of a prominent, popular and by all accounts highly effective Iranian general will allow the advocates of war to trot out all manner of excuses for such a war: terrorism, regime change, the credibility of the United States, Iran’s nonexistent nuclear weapons, and the United States’ geostrategic posture vis-à-vis big power rivals such as Russia and China. (Does anyone really know what the last one means?)
What won’t be discussed are the deep historical antagonisms which have developed starting with the 1953 CIA-backed coup. For example, few people remember that the United States supplied economic aid, dual-use (both civilian and military use) technology, training and arms through other countries to Saddam Hussein in the Iran-Iraq War. Saddam invaded Iran thinking he could take advantage of the chaos in that country right after the 1979 revolution. In this war Iraq attacked major Iranian cities including Tehran with ballistic missiles and used poison gas on the battlefield. Iran is said to have suffered over 1 million deaths during the eight years of conflict which also created a large class of disabled people.
It turns out that the Iranian focus on America and its worldwide military, intelligence (covert and otherwise) and diplomatic operations is but a mirror image of the American focus on Iran and its worldwide network of intelligence and allied surrogates that Iran uses to strike at the United States and its allies.
Behind it all are the vast stores of hydrocarbons that make Iran’s power possible and its importance substantial in the world. What is strange about this American obsession is that successive American administrations, both Republican and Democratic, have told us that soaring domestic production of oil and natural gas from shale deposits in the United States would free us from foreign sources and lighten our military and security burden abroad. “Energy dominance” became the watchword in the U.S. oil and gas industry.
U.S. net imports of crude oil have dropped from 10 million barrels per day (mbpd) 15 years ago to around 3 mbpd today. And, because of its vast refining capacity, the United States exports about 3 mbpd of refined petroleum products. While the United States remains connected to world markets, the country is far less dependent on foreign sources of oil than in the past.
So, why is the U.S. government and national security establishment still obsessing over Iran? Here are three possible energy-related explanations:
1. There isn’t as much U.S. shale oil and natural gas as we are being told.
This is a real possibility. This independent report—actually an update of previous reports—concludes that forecasts of abundance by the U.S. Energy Information Administration are “extremely optimistic” and “highly unlikely to be realized.” The report is based on actual well histories and not industry hype about future resources.
Others who have started to look closely at the data agree that the industry has overblown the potential from shale. And, investors have finally wised up to the fact that the shale industry as a whole has done nothing but destroy their capital over the last decade, losing 80 percent of its market value as of the middle of 2019.
Free cash flow has been consistently negative for almost all the major players which has forced them time and time again to raise money through the bond and equity markets. Unfortunately for investors, these infusions didn’t stabilized shale players. Investors were just throwing good money after bad. Now those investors are finally pulling back.
In short, the shale boom is not sustainable financially or technologically. The “miracle” technology that is bringing oil and natural gas not previously available out of the ground has never been able to make the industry as a whole profitable. Eventually, that will be reflected in production numbers as investors only finance those few players and few prospects that can actually make money.
2. Iran is a competitor of the U.S. oil industry.
Despite Iran’s vast oil and natural gas reserves, its exports have fallen dramatically due to sanctions placed on it by the United States and forced on other countries whose companies do business in America.
The cuts in Iranian oil exports have kept low prices in the oil markets from getting even lower and affecting U.S.-based oil operations negatively. By keeping sanctions in place and continually working toward zero exports from Iran, the U.S. administration is also helping to keep oil prices higher than they otherwise would be and this helps the domestic U.S. oil industry whether the administration intends this result or not.
3. Iranian energy exports are a way for Iran to extend its influence.
Pakistan backed out of a pipeline project last year because of sanctions imposed by the United States on Iran. The pipeline would have brought Iranian natural gas into the country. The pipeline was originally planned to bring natural gas to India as well before that country pulled out of the project. The U.S. government clearly wants to prevent Iran from using its energy exports to give it leverage with other countries.
No one can say for certain whether current tensions between the United States and Iran will spiral into war. But remember: When they tell you it’s not about oil (and natural gas), you can be certain that these resources are at the center of American motives. Absent these resources it would be difficult to understand the United States’ decades-long obsession with Iran.
The outsized role of U.S. Israel lobby operatives in abetting the theft of Syrian and Iraqi oil reveals how this powerful lobby also facilitates more covert aspects of U.S.-Israeli cooperation and the implementation of policies that favor Israel.Continue reading The Israel Lobby’s Hidden Hand in the Theft of Iraqi and Syrian Oil
In early 2014 Washington staged a blatant coup d’etat in Ukraine breaking the historic relationship with Russia and setting the stage for the subsequent NATO demonization of Russia. The one in charge for the Obama Administration of the Ukraine coup was then-Vice President Joe Biden.Continue reading Putin and the ‘Biden Memorial Pipeline’ to China
Many people think that the United States is very active, but does not succeed in much. For example, it is said that its wars in the Greater Middle East are a succession of failures. But for Thierry Meyssan, the USA has a coherent military, commercial and diplomatic strategy. According to its own objectives, it advances patiently, and is crowned with success. Continue reading The new Grand Strategy of the United States
The long bankrupt fiat financial system is pushing the Deep State to target Venezuela for the latter’s natural resources that dwarfs that of its satellite province Saudi Arabia. However, the age old pretext of “defending democracy” will not fly anymore as the rest of the world no longer tolerate any of these baseless external interference into peaceful countries, which eventually makes failed states out of them. Continue reading Venezuela’s Oil Enough for World’s 30 Year Energy Needs
After the groundbreaking announcement of an industrial method to transmute elements into gold and silver, or any materials for that matter, in 2016 [here], Russian scientists have been pushing the boundaries of nuclear miniaturization in the last few years by designing, and recently by successfully producing a pocket-sized nuclear battery that can power portable devices for decades without recharging, with as much as 10 times the energy capacity of its predecessor! Continue reading Pocket-Size Nuclear Free Energy is Almost Here!
In conjunction with the efforts to directly address the abuses of the Deep Swamp filths, the Trump administration has advised the general public to be prepared against an “increasing threats — whether severe natural disasters, cyber-physical attacks, electromagnetic events, or some combination”, which “present new challenges for protecting the national power grid and recovering quickly from a catastrophic power outage.” Continue reading Trump’s NIAC Advising Americans to Prepare for Deep State Disruptions
US President Donald Trump has been accusing OPEC of propping up oil prices. However, it is the Trump administration that triggered the crude rally, according to Russian President Vladimir Putin. Continue reading "Look into mirror to find culprit for surge in oil prices’ | Putin to Trump
When Martin Fleischmann and Stanley Pons stunned the world with their room temperature cold fusion apparatus in 1989, the authorities quickly intervened due to a real threat to its “national security,” a coded phrase for Military First. Continue reading Cold Fusion is Here, But…
Muammar Gaddafi wanted to shatter the dominance of the greenback in the Middle East by introducing gold-backed dinar, but failed. China has a chance to finish what she started, one industry expert has told RT. Continue reading China Can Succeed With Petro-Yuan Where Gaddafi Failed
When we talk about the Hillary Clinton and Russian company Uranium One transaction, we mostly meant to expose the hypocrisy behind the Deep State Democrat faction’s RussiaGate “election meddling.” It turns out, there’s something more. Continue reading ‘We gave you uranium, you repaid us by bombing Belgrade’ | Putin
China sees the atomic energy boom with the number of nuclear power stations in the mainland soaring. However, the Celestial Empire harbors a more ambitious goal seeking to boost the construction of China-made atomic stations abroad, commentators told Sputnik, shedding light on Beijing’s competitive advantages. Continue reading What's Behind China's Breakthrough in Atomic Energy Production
Nuclear power is making a debut in Saudi Arabia as it is entertaining bids for building 16 nuclear reactors over the next decade, at a projected cost of $60 billion. As everyone knows already, the fiat dollar derives its perceived value from the fact that OPEC cartel members, including Saudi Arabia, committed themselves to accepting only the dollar and nothing else. Continue reading Saudi Arabia Divesting from Petrodollar to Nuclear Energy Based Economy
Fully loaded oil tankers are anchored in ports worldwide, while solar panels are getting cheaper by the day as global competition heats up.
The global energy reset has begun.
Continue reading The Global Energy Reset is On
To underscore the BRICS’s fundamental goals of establishing three development banks to support its “One Belt, One Road” intercontinental economic initiatives, one of its banks, i.e.
the New Development Bank, approves loans for the first time, and these are for renewable energy projects in South Africa, Brazil, India and China.
Continue reading 1st Loans Approved by BRICS Bank are on Renewable Energy
We have been following how the BRICS would implement their ambitious free energy transition from fossil fuels, and over the last weekend, March 31 to be exact,
China announced that it is planning to interconnect all existing and soon to be constructed solar farms for continuous power supply throughout the globe.
Continue reading China’s $50 Trillion Global Clean Energy Project Muted by Panama Papers
Royal Dutch Shell, the UK’s largest oil company, only scraped in $3.2 billion profit in the first three months of 2015, a near 60 percent drop from $7.3 billion the oil behemoth earned during the same period last year.
Continue reading Crude Awakening: Dutch Shell Profit Plunges 56%