Has Washington Just Shot Itself in the Oily Foot

[darkbeaver]

Has Washington Just Shot Itself in the Oily Foot?

by F. William Engdahl
​

By organizing in Iraq and Syria the first war leading to a decline in oil prices, the Obama administration’s intention was probably to cripple its adversaries’ economies: Russia, Iran and Venezuela. But this policy can have severe unintended consequences in other areas: acceleration of China’s development, threats to the dollar’s value and a challenge to the fictitious economic model predicated on shale oil bonanza. For William Engdhal, this last manipulation is perhaps the straw that will break the camel’s back.

Voltaire Network | Frankfurt (Germany) | 6 November 2014

The collapse in US oil prices since September may very soon collapse the US shale oil bubble and tear away the illusion that the United States will surpass Saudi Arabia and Russia as the world’s largest oil producer. That illusion, fostered by faked resource estimates issued by the US Department of Energy, has been a lynchpin of Obama geopolitical strategy.
Now the financial Ponzi scheme behind the increase of US domestic oil output the past several years is about to evaporate in a cloud of fictitious smoke. The basic economics of shale oil production are being ravaged by the 23% oil price drop since John Kerry and Saudi King Abdullah had their secret meeting near the Red Sea in early September to agree on the Saudi oil price war against Russia.
Wall Street bank analysts at Goldman Sachs just issued a 2015 forecast that US oil prices, measured by a benchmark called WTI (West Texas Intermediate) will fall to $70 a barrel. In September 2013, WTI was more than $106 a barrel. That translates into a sharp 34% price collapse in just a few months. Why is that critical to the US shale production? Because, unlike conventional crude oil deposits, shale oil or tight oil as industry calls it, depleted dramatically faster.Has Washington Just Shot Itself in the Oily Foot? , by F. William Engdahl

 

[Tecumsehsbones]

The Saw Doctors - Away With The Fairies - YouTube

 

[captain morgan]

Why is that critical to the US shale production? Because, unlike conventional crude oil deposits, shale oil or tight oil as industry calls it, depleted dramatically faster.

Infrastructure is also an issue.

 

[petros]

Too funny. Oil has been overinflated for the past 6 years to pay for development. Now that Domestic projects are paid for a drop in price was inevitable and well prepared for by Govs.

Saudis and other OPEC nations were caught with their pants down thinking the overinflated prices were going to continue. Saudis will have to find another way to fund massive NG and electricity projects that recently began construction.

 

[darkbeaver]

Too funny. Oil has been overinflated for the past 6 years to pay for development. Now that Domestic projects are paid for a drop in price was inevitable and well prepared for by Govs.

Saudis and other OPEC nations were caught with their pants down thinking the overinflated prices were going to continue. Saudis will have to find another way to fund massive NG and electricity projects that recently began construction.

Links to the preparations please, I found none, except in the far east. The world don't need yankee dollars no more to move oil another eighteen months or so and the dollar will be kindling and or toilet paper. This is war.

 

[petros]

Yeah. We are at war with OPEC nations. They sure as sh-t aren't behind the drop in prices.

 

[darkbeaver]

Well there are a lot of different ideas about this unfolding world war.

 

[petros]

As long as OPEC funds the ISholes they will continue to be pummeled economically by the west.

You gotta admit, the overinflated prices set by OPEC did us a world of good to fund the ActionPlan.

 

[Goober]

Oil glut- weak economies- slow growth.
Saudis are protecting market share. Last time they cut production, losing market share which was difficult for them to gain back when oil increased in price.
Iran & Russia need high oil prices. The ruble is tumbling- though the have substantial reserves of cash.
Iran, not a friend of the Saudi's and this hits them harder than Russia. Does anyone wonder how this will affect the Nuke deal?
Venezuela- well they are were on the economic skids before the price drop.

 

[petros]

Iran/IraqSyria are under attack by the IShole Saudis too. The nuke deal is fine, they never intended on a bomb to begin with.

 

[Goober]

Iran/IraqSyria are under attack by the IShole Saudis too. The nuke deal is fine, they never intended on a bomb to begin with.

I could say they do, but our opinion is not at the table.
Sanctions are breaking them.

 

[darkbeaver]

As long as OPEC funds the ISholes they will continue to be pummeled economically by the west.

You gotta admit, the overinflated prices set by OPEC did us a world of good to fund the ActionPlan.

The WEST is a term of association and alliance it has no fixed geographic location, OPEC is a western construct, that construct is nearing it's useful end. ISIS is a western construct assembled to act as proxy deterent to the emerging BRICS alliance in the ME theatre, and numerous other places, like Ohtawahaha, we already see it's expansion into China and Russia, anywhere that the Islamic Horde ad hoc meme can be inserted to disrupt those who would rebel against the western lizard.

Us? WTF is us? The action plan is to strip the west and leave it flat and defenseless. So there's the West and the opposition to the West and the usual winners the pricks in the middle who permanently milk the first two.

 

[petros]

You really got to cut the Alex Jones subscription.

 

[darkbeaver]

You really got to cut the Alex Jones subscription.

I watched one of his flicks once and never ever considered his crap again. You give me a few sentences of your estimation of the world sityeashun and I'll forgive your unfounded implication.

You are the oldest believer in Santa Claus I've ever met at CC.

 

[grainfedpraiboy]

I have heard a lot of theories from industry, industry watchers and economists on the cause of the decline in oil prices but this is the first time I have heard that it was a conspiracy by the American government that has come back to bite them in the ***.

What a load of Malarkey.

 

[darkbeaver]

I have heard a lot of theories from industry, industry watchers and economists on the cause of the decline in oil prices but this is the first time I have heard that it was a conspiracy by the American government that has come back to bite them in the ***.

What a load of Malarkey.

Well if you've heard a lot of theories about this issue perhaps you would share them with us. thankyou

 

[petros]

I could say they do, but our opinion is not at the table.
Sanctions are breaking them.

What is blocking the Iran/Iraq/Syria pipeline into Europa? Saudi ISholes or sanctions?

You don't believe in the nuclear boogieman propaganda spewed by Nutlessyahud to keep Israelis in fear and not focusing on the $40Billion a year deficit he got them into do you? They beat Iran in putting up a com sat all while making up stories of nukes and a space program that was never to launch nukes. That's a lot as lost cash for Iran not being the first having a Eurasian com sat.

BOO!

You are the oldest believer in Santa Claus I've ever met at CC.

I am Santa Claus.

 

[grainfedpraiboy]

Well if you've heard a lot of theories about this issue perhaps you would share them with us. thankyou

Everyone in the oil industry has seen this coming for a while. The reason for the price drop boils down to:

1.) Libya, Iran and ISIL are selling oil at huge discounts for cash and pumping as much of it as they can;
2.) ISIL doesn't control much for oilfields but oil speculators artificially had prices much higher on speculation that they would plus given all the new finds recently in Brazil, the Mediterranean and other places expect speculators not to be as bullish;
3.)The Bakken play along with fracking in the US has turned the country around from importing about 20% of the world's oil production per day to being on the cusp of being a net exporter.
4.) After Fukishima Japan shut down their nuclear power (which supplied about 30% of their energy) and ramped up fossil fuels to make the difference. Their nukes came back on line this summer greatly reducing demand.

I personally figure oil will dip to about $80.00 and predict OPEC will try to curb production with a target of $90.00.

Here is what to watch for that may push oil to $60.00:

1.) Russia has pissed off Europe with all their threats over energy deliveries and now there is a rush to start fracking their own old fields. Expect a similar increase in production as experienced by the USA over the next 5 years;
2.) The Danish will be bringing their Arctic fields online;
3.) A failed state in Iraq could see them join Libya and Iran in ignoring OPEC quotas and selling as much oil as they can pump at deep discounts for desperately needed cash.

But don't get too comfortable with the low prices. It is unknown how long all these newly fracked fields will produce oil for and they could be dried up in the next 5 years. European fracking will likely be shut down due to protests unless Russia shuts off the taps which is unlikely as $60.00 oil plunges Russia and Saudi Arabia into recession and even depression territory so expect those two producers to start taking a greater interest in in finding a way to bump up prices either through hook or crook.

I don't like low oil prices because it encourages greater consumption which is bad for the environment and bad for our economic dependance on a finite resource. I do like low prices to give me a labour break.

My contacts in the industry tell me they will take advantage of low prices and slumping demand by actually building more upgraders and other projects because the industry has learned that the prices for these projects goes up a whole lot more when the industry is going full bore.

http://forums.canadiancontent.net/canadian-politics/128893-panic-time-oil-goes-so-3.html

 

[darkbeaver]

That's all interesting stuff to consider. Thankyou

 

[tay]

ISIS has seized Oil fields in Northern Iraq and Syria and are dumping Oil for their funding.


This seems to get little press in North America, likely because then we would realize that we are spending who knows how much to wipe out ISIS for the Oilers benefit.......








Islamic State militants, who have seized oil fields and refineries in Kirkuk province in the north of Iraq, are selling the hijacked oil on the black market for a price as low as US $20 per barrel, according to the country's Finance Ministry.


The extremists have moved deeper into the oil rich Kirkuk region and captured more oil production facilities in the area, including one of Iraq's oldest oil fields, the director of the Public Debt Department at the Finance Ministry, Muwafaq Taha Izz al-Din Al-Houri told RIA Novosti news agency.


There are reports that Islamic State (IS) is selling Iraqi oil for only $20 per barrel on the black market, Al-Houri told the agency on the sidelines of an expert meeting on terrorist financing in Bahrain. The price is four times lower than on the official market.


"Iraq's diplomatic agency and oil ministry are actively working on finding those, who buy oil from the group, and to inform the international community on it for taking appropriate action," the Finance Ministry representative said.


Combatting the financing of militants such as the Islamic State group "is half the battle to defeating them," Bahrain's Foreign Minister Sheik Khalid bin Ahmed Al Khalifa told a gathering of delegates from 30 countries at the Sunday conference, as quoted by AP.


At an energy conference in late October, a senior US official told Reuters that the US was working with the KRG to identify oil routes, trucks and traders involved, in an effort to block the smuggling, which is a key source of funding for Islamic State.


In September, the jihadists were gaining more than $3 million per day just from oil sales, according to US intelligence officials and experts, making IS richer than any other terror group in history. The militants were then selling the hijacked oil at discount prices of about $25 to $60 per barrel.


According to US analysts, eleven oil fields in Iraq and Syria were under control of the militants group, who were selling oil and other products via old established networks under the noses of Kurdish, Turkish and Jordanian authorities.





http://rt.com/news/203723-isis-iraq-oil-smuggle/