In the mainstream media, confusion reigns, as usual. We are definitely at the Hubbert Oil Peak and there are really not any great 'finds' anymore and the biggest fields are floundering. The effects of this are obvious but occulted by a group effort to deliberately not understand what is going on.
The major reason that Pemex’s prospects are so poor, energy experts agree, is government interference. The Mexican government, which expropriated the oil industry in 1938, depends on Pemex to finance its budget. Last year, sales at Pemex (its full name is Petróleos Mexicanos) reached $97 billion. But $79 billion of that went to the government, Pemex’s chief, Jesús Reyes Heróles, said last month. That accounted for almost 40 percent of the federal budget.
Government interference is only part of the story. Pemex has been hamstrung by years of short-sighted management aimed at extracting the most cash for the government treasury — Mexico’s president and Congress must approve the company’s budget, its output, investments and exports each year. By law, Pemex is closed to any outside investment, shutting it off from private capital and expertise.
In addition, Pemex has not reinvested enough for decades and, because it faces no competition at home, has lagged behind many of the industry’s technical advances. Its labor union has locked it into rigid work rules and siphoned off hundreds of millions of dollars for unexplained benefits. And that does not even touch on the widespread corruption and waste.
My goodness gracious. Mexican workers get great benefits from all that oil. The ruling class financiers and satanists grind their fangs in rage. How dare they get the profits that ought to be flowing to the ruling classes! In the name of efficiency, this is to be brutally terminated---of course, the workers will fight back but this is what mercenaries are for: to suppress any peasants who get any ideas they should get rich, too.
The other astonishing thing in this ruling elitist article is the accusation, the Mexican government is short-sighted and aimed efforts at pouring oil profits into the Mexican treasury! We want Mexico to go steeply into debt so we can mine their resources for our own ruling elite's banking profits. I noted earlier that Mexico's reserve funds are rapidly rising the the level of the USA. We are ranked well below many nations in this regard due entirely to a corrupt, venal government that runs a destructive program of 'free trade' with the help of rich media owners who abuse us all with nit-picking or defaming or even outright lying about anyone running for office who desires to change all this.
Our elites itch to get their paws on the remaining oil in Mexico. Instead of using that oil within Mexico, they will 'invest' in extracting it and charge this against the people of Mexico, drive them steeply into debt and voila! Will have them in a noose forever!
Isn't this charming? If the Mexicans refuse, our government can rouse anger against Mexican workers and illegal aliens and then get us to attack Mexico---something we have done in the past!---and seize the natural resources the same way we have done in Iraq.
President Bush is scheduled to visit Mexico Monday and Tuesday, and oil is likely to be on the agenda. In comments to Latin American reporters this week, Mr. Bush mused that Mexico’s president, Felipe Calderón, should consider private capital to expand Pemex production. The comments ruffled Mexican sensitivities over national sovereignty of its oil resources.
Ruffled? How about homicidal rage? The capitalists planning to hijack Mexican oil get their money from the yen/dollar disjointed imbalance. They will cheerfully get cheap Japanese loans, take a 20% cut off the top for their hard efforts and then skim the profits for themselves. We are doing this in Iraq right now.
Presidents Bush and Lula agenda for early morning Friday includes biofuels, particularly ethanol, of which the two countries are responsible for 70% of the world's production. Both countries are intent in a strategic alliance to promote alternative fuels and produce ethanol in African and Latinamerican countries.
Another controversial issue is global trade and the World Trade Organization Doha Round negotiations which remain stalled on the issue mainly of farm subsidies and market access.
Meeting with German president Horst Köhler in Brasília on Thursday Lula criticized subsidies granted to US farmers and described them as "completely contrary and harmful for free trade".
The destruction of the Amazon will be sealed. American farmers will suck up all the water in the Ogalala Aquifer and the east side of the Rockies will become semi-desert. Ditto, the Amazon basin. On top of this, biofuels will certainly make desertfication worse as well as increase global warming. Not to mention, accelerating the species die-off that is already a huge force ripping through the natural ecosystems.
On top of all this, the 'free trade' farce rears its ugly head: there is no such beast. There are all sorts of evasions all nations use to jigger this foul system so a status quo is established that funnels as much of the wealth as possible into the laps of the very rich or very powerful.
Raymond J. Learsy Thu Mar 8, 11:14 AM ET
Now that sustained high oil prices and environmental concerns have stimulated massive efforts to develop alternative fuel sources, the oil industry pooh-bahs are finally realizing they have overstepped themselves. For decades they have been frightening us into accepting ever higher prices with their postured concerns of the imminent demise of oil. Suddenly they and their allies in the media are rushing to inform us they have been wrong wrong wrong, for decades. Oil is not scarce, nor are we about to run out of it!
On Monday March 5 in a first page right-hand column The New York Times' oil specialist Jad Mouawad, following up on the recent commentary by Cambridge Energy Research analyst Daniel Yergin, two of the oligopoly's most amenable parrots, have finally come round to the argument I have been making for years (see "Oil Is Not Scarce -- The Oil Industry Continues to Play Us for Fools," 5/24/06, not to speak of my book Over a Barrel: Breaking the Middle East Oil Cartel, pub date 08/05).
Over and over again, I read junk by fools like this guy. They all point to the record amount of oil being pumped and exclaim, 'See, there is still lots of oil! Those oil peak guys are stupid!'
Way back in the seventies, I took lots of effort to explain, the only major oil-pumping nation to reach the Hubbert Oil Peak was the USA. And the oil price hikes were mostly political or due to the beginning of the oil wars which will lead, if we are stupid, to WWIII. Well, here we are, heading into WWIII thanks to oil and of course, it is being pumped frantically out of the ground with no heed for the tomorrow's needs.
Everyone is under pressure to get as rich as possible as quickly as possible. And already, the USA is no longer trusting the CIA to overthrow the governments or corrupt the governments of oil pumping nations, we are now openly and very violently, invading them. Russia and China have repeatedly warned us to not do this to any more oil nations. They are strengthening their position with various oil pumping nations, do note the chart at the top: our next door neighbors are the world's biggest oil pumpers.
We invaded Iraq and we manipulate Saudi Arabia who, in turn, manipulates us. And we want to overthrow Venezuela's government, the government of Nigeria teeters on the edge of civil war as we frantically rip the people there off as fast as possible. The graph clearly shows the dangers ahead if Mexico begins to slide and Saudi Arabia gets sucked into a revolution. I see no slacking off in these wars, they will increase as we try our best to stop poor people living in oil countries, tapping into the vast wealth of oil.
For the proof of the Hubbert Oil Peak is simple: oil will become dearer in price. As it goes up, ALL others will rise in cost too. Wind, solar, biofuels, coal, all will steeply climb. And the USA uses these fuels as if we are a rich country with a trillion dollars in reserve funds and not the world's most indebted nation, owing money to all and sundry.
Senator Patty Murray (D-WA) went to the floor of the Senate on Tuesday and said something I really admire. I respect her words because she made a statement that falls, for some incredibly dumb reason, right into that category of words we dare not speak.
"In truth, we are fighting a war with no cause," said the Washington Senator.
Kudos to Senator Murray for having the guts to speak hard words that, for whatever pathetic reason, seem to challenge the courage of people on both sides of the political aisle. Lives are being wasted and this is indeed a war with no cause whatsoever.
And although Patty Murray will undoubtedly be attacked for those words, it's refreshing to hear someone in Washington speak that reality.
AAARGH. Once again, the 'liberal' blogsphere joins with lying Democrats, some commentators are so easily fooled. The Iraq invasion was for two things: European and American corporations wanting the oil profits and Israelis wanting oil. All the tomfoolery of WMD and Saddam killed his own people was tripe used to bait Americans so they would support the beginning of WWIII.
Admitting we went there for the loot is a good first step in fixing what is wrong. We lost a fortune, stealing this oil. And instead of reducing the troops and leaving, the troops are increasing, the funds wasted in this oil war are increasing, this is all so stupid.
Click here to see movie of worried mother of a Marine being sent on his third rotation into Iraq: Congressman Obey sneers about liberals being the problem. He assures the poor mother, he is going to vote for billions more for her son when he is inevitably blown up or goes insane. Charming.
The Democrats will vote for more money for these oil wars. They will vote for Israel's raiding of our treasury. They will vote for free trade. The system we are trapped within won't die an easy death, alas.
SAN FRANCISCO (MarketWatch) -- The oil market actually fared pretty well when the bottom fell out from under the global financial markets and most commodities.
"Oil prices have weathered the stock-market plunge quite well over the past week, all the while other commodity markets have suffered under liquidation and threat of economic slowing," said Thomas Hartmann, an analyst at Altavest Worldwide Trading.
On Feb. 27, U.S. stocks saw their worst one-day performance since 2001, with the Dow Jones Industrial Average ($INDU: 12,260.70, +68.25, +0.6% ) closing more than 400 points lower after a sell-off in China fueled concerns about growth.
That sparked a drop in gold, and by the time the metal's losing streak seemed to end on Tuesday, futures prices had dropped more than $50 an ounce.
Crude futures, in the meantime, rose more than $3 a barrel, or 5%, between Feb. 20 and March 1.
Gold bugs run many websites. They suckered poor Mike Ruppert into thinking gold was the panacea that would protect people from the economic chaos of the downslope of the Hubbert Oil Peak. For years, I have loudly warned people about this. Gold won't be worth anything if the government confiscates it and they always confiscate it when banks collapse. And gold falls in value if stocks fall.
One solution to the high cost of union labor, its pension and health-care requirements, is to build cars outside the US. The UAW will fight to the death to keep the jobs they have at Chrysler (DCX), Ford (F), and (GM) "in country" but the fact of the matter is the the number of cars produced in the US isn't what it used to be.
Bank of American is out with a report that shows China's car production hit 5.2 million vehicles compared to 4.4 million in the US during 2006. Ten years ago, China only produced 6% as many cars are the US built.
Just as our rulers lust to kill off the Mexican and Venezuelan oil unions, so they lust to kill all our unions. And the workers, weak, ill, helpless, will be used for cannon fodder in the looming oil/resources wars they plan to wage. This is why the military budget goes up and up and the Democrats won't stop it any more than the GOP. They all are in the grip of the rich. Thanks to our crappy election system that relies on huge infusions of funds from these same very rich people.