Saudi Arabia Dreams Of Pumping Infinite Oil

Elaine Meinel Supkis

World oil prices rise ever higher and the fiction of no inflation continues to roll as the inevitable sales bring down the price of nonessentials. Hello, good old stagflation! Stagflation isn't when bucks go into rut but when the bucks fall into a rut. (Joke) Terrorism in Mexico, OPEC has to let Saudi Arabia sell more oil because they want to crush Iran Kitty by cutting the cat's return on fuel but there is an irritable bear in Russia who just might make yet another squeeze play in the energy pricing game?

From Forbes:

Six explosions ripped apart pipelines for Mexico's state oil monopoly early Monday, the company said. The blasts were believed to be sabotage and 12,000 people were evacuated afterward.

A small, left-wing guerrilla group claimed to have attacked a major gas pipeline for the Mexican state oil monopoly Petroleos Mexicanos, or Pemex, in July and at the time at least a dozen major companies were forced to suspend or scale back operations.

Pemex issued a statement saying it believed Monday's explosions were also sabotage. Government officials said 12,000 people were evacuated after the blasts.

The smaller the political guerilla group, the harder to stop. Traditional insurrectionists operate in groups of three or like the 9/11 guys, in overlapping groups of three headed by Atta reporting to who knows... the fact that this operation was hatched and grown in the one place on earth with more retired and present CIA operatives outside of Langley should alert us to some connections here that we can't prove except, geeze, that part of Florida is 100% Bush territory! More than Texas! Where the oil is, by the way.

The US has no terrorists attacking our oil facilities but we don't control all the people living around oil as we can see in Iraq, we have precious little control over anything oily or watery. The US helped the ruling elites retain control of the Cantrell oil fields despite obvious signs the elections there were as fake as our own and as corrupt. Now, the opposition isn't resting at home like here, in Mexico, the movers and shakers will move about like shadows in the dark and shake everyone up, big time. Their chances of disrupting things badly is fairly high. This is due to the difficulty of penetrating organizations of three or five people. The government will probably kill more teachers and filmakers in a blundering attempt at scaring these obviously well-armed and well-trained fighters who probably learned things from the masters over in the Middle East who, on a daily basis, show everyone how to deal with the oil-hungry imperialists.

Each day that we squat in Iraq, getting blown away, the oil shutting down then spurting, the oil pumpers in the region as frightened as fat rabbits, as the individuals doing this mock the US via bin Laden and his terrorist news service online, as Nigeria struggles to stop insurrectionists from wrecking havoc there, oil prices soar. And the goal of all these people messing with our oil spider web are doing this in order to drive up the price of oil. Iran, for example, is perfectly happy to see the price of oil go up and up. The US has tried every trick in the book and Israel, every threat possible including nuclear war, to stop Iran from interfering with our illicit oil extraction in Iraq. But Iran doesn't have to do much at all, the people interfering with us are people who also want us good and dead: other Iraqis irritated that we are handing over the prize to Iran when we leave. Yet they can't let us stay since our sole reason to be there is to steal all the oil and then drop the place like Haiti, to die or starve to death while we totter off, rubbing our fat bellies.

Mexico's oil flows north and the Mexican people see few benefits from this. One thing they did get was the right to illegally enter the US and do whatever they wanted. But this is being withdrawn and so they are back to square one: the US is buying their one-time resource that is irreplacable and giving them increasingly weaker dollars in return.

Here is the list of the top 20 nations and their FOREX reserves:

I love to check to see who is doing what with their FOREX reserves for this is a clue to what might happen next not only with oil but other things. First off, note how energy-seller, Russia, has amassed an awesome reserve that keeps the euro strong since he is holding euros, not dollars, in vast amounts. The Europeans may want their euros to stay strong against Russia because, as with the weak dollar, they can buy energy super-cheap. But the downside, their export sales are turning nasty, fast, is one they just are coming to grips with this last 2 months, quite belatedly, I might add.

Mexico is the other energy exporter that has a big FOREX reserve even though it is dwarfed by Russia's, Japan's and obviously the super-giant, China. Incidently, Iran's reserves are nearly as big as the mighty USA's reserves. I see so many hideous problems with all this, it troubles my sleep. Oil pumpers Libya, Nigeria and Norway have nearly identical FOREX reserves as Iran. Their FOREX holdings are the same size as all of Europe's joint holdings. I will note here that both the USA and Europe dumped $500, maybe to $1 trillion dollars into the banking system without drawing a pfenning out of their own FOREX reserves which are supposed to protect currencies from runs on their banks, etc. I smell a big rat here, namely, someone who used to rule the world or who still thinks they rule the world, cheating.

Now we come the the big OPEC oil sheikhdoms and kingdoms and CIAdoms. And at the top of the list, Venezuela. Venezuela has lower standing than Mexico, less than 1/3rd of Mexico's FOREX reserves. Do note, of course, bombs are going off in Mexico and teachers are being shot, etc. Rough monetarist policies at work. The three big oil pumping OPEC kingdoms together have the reserves of Mexico.

From Bloomberg:

Crude oil rose to a record close of $78.23 a barrel in New York on speculation that OPEC's agreement to increase production by 500,000 barrels a day will be insufficient to meet strengthening demand.

``We are going to need more than 500,000 barrels to meet rising demand,'' said Tom Bentz, a broker at BNP Paribas in New York. ``We are also up on speculation that the interest rates will be cut, which would help the economy and lead to higher demand for oil.''

OPEC doesn't control oil markets anymore thanks to Russia. Saudi Arabia may choose to pump themselves dry faster, this is a foolish thing but then, the king is a very corrupt creature. His plans for the future are for them to all move to Europe or other climes after destroying their home base. They really can't stand it there, anyway. I don't think most of them live there much, anymore, except they have to have some presence or they will lose control of the money stream and that is all that matters to them. This bounty must flow and they are most anxious to set up some sort of financial base in Europe and America so they can shed their identity and become fully cosmopolitan and do as they wish which is to live with no rules or restrictions. This is why they killed Faisal. He was very strict. And he worried about the oil being pumped out too fast.

Unlike Bin Laden, they want the West to be rich or rather, for their enterprises in the West to make them richer and if this means pumping Saudi Arabia dry in 15 years, they will do this. The whole world economic system is based increasingly on exploiting things to the maximum for personal gain, not planning for the far future for national benefit. The Saudi grip of reality is not very good, I might add. If Iran doesn't pump dry but instead, invests internally, they will be much stronger in 15 years than Saudi Arabia. If the US goes bankrupt, Iran doesn't care if it is selling oil to China, Japan or Europe. They know they must sell enough oil to build a powerful deterrent force at home because their Sunni neighbors are prone to attack them.

But in the long run, if they withhold oil while Saudi Arabia pumps like mad, they win.

From Bloomberg:

Crude oil traded near a record in New York on speculation increased OPEC production won't build sufficient global stockpiles for the fourth-quarter demand peak.

Oil rose yesterday after the Organization of Petroleum Exporting Countries, producer of 40 percent of the world's oil, said it will pump an extra 500,000 barrels a day starting in November. Prices also gained on speculation an Energy Department report today will show oil inventories in the U.S., the world's largest consumer, fell for the ninth week in 10.

What is going on? Normally, the US has to prepare enough oil reserves for old man winter. The Russians know victory comes to them when they trust this same old man. Winter, I assure people in the south, can be very challenging here in the north! Many people heat their houses with oil. I use firewood because I have a forest available. And meat on the hoof, we have one big, big buck here this fall and I watch him every morning. Along with the wild turkeys. Back to the oil: we use more than we produce on every level. And our trade deficit depends on oil being cheap and the Saudis have a lot of money invested on Wall Street and it irritates them to see it go down. Iran has no money invested on Wall Street so they want it to go down and I detect a similar situation to the Japan/China currency games being played in Asia, wrecking monetary matters in the US and Europe. Namely, everyone's tit for tat games are destabilizing the world's financial systems which are very vulnerable due to the central banks playing inflation number games and interest rate magic games designed to make money appear out of thin air.

These sorts of situations always end up with sudden direct confrontations at sword's point. And the US has been agitating for exactly this, with Iran.

Another thing wrong with today's stories about the king of Saudi Arabia thwarting bin Laden by pumping lots and lots of extra oil: this story appears like clockwork! Just three months ago, the fat little king squeaked he would flood the world's oil markets to punish Iran kitty! And the cat laughed and dared him to try. And then what happened? Did world oil prices fall fast? No?

They went up! This is simple: there isn't any extra 500,000 barrels of oil in Saudi oil fields to pump out on a daily basis! It is all fantasy. I begin to suspect the old king is playing a bluffing game. I notice someone is selling on Wall Street and I bet anything that the various financial houses owned by these Saudis are selling while the king talks about cheaper oil which sends the market soaring as fools who bought shares in Pirate LLP stocks rush to buy what the king is selling! Seriously, he knows how the market works. So before everyone rushes to get a new Hummer, just remember: PEOPLE LIE. And they make fake moves! And they cheat outsiders. And the Saudis hate us, even the ones pretending to love us, hate us. So we should treat this news as mostly feed for the geese that will be eaten by the wolves.

Bloomberg:

Saudi Arabia persuaded OPEC members to increase production for the first time in a year, seeking to reduce the record price of oil, over the objections of Iran, Qatar, Venezuela, Libya and Algeria.

Saudi Arabia, the group's biggest exporter, wanted to boost supplies after crude prices gained 28 percent this year to $78 a barrel, said Iraqi Oil Minister Hussain al-Shahristani. The 500,000 barrel-a-day increase will be on top of a current quota of 25.8 million barrels a day, according to Kuwait's acting oil minister, Mohammed Abdullah al-Aleem.

As recently as last week, most ministers from the 12-member Organization of Petroleum Exporting Countries said there would be no change to quotas during meetings in Vienna that concluded yesterday. Supplies were sufficient to meet demand, the OPEC officials said.

This story is just to show the permutations here. The Iraqi oil chief who is a US puppet has assured us, this new oil will flow like mother's milk. And the Saudis want us in Iraq because the minute we leave, they will be destroyed by the Shi'ites who will overrun them. And of course, like Japan, they must also pretend to be protecting our economy as they destroy it. We should figure this out some day when it dawns on us, our buddies are our worst enemies. Friends who push you off a cliff aren't friends.

Algerian Oil Minister Chakib Khelil said yesterday that OPEC should be wary of repeating the ``wrong decision'' it took in late 1997 at a meeting in Jakarta, when it boosted output just before an Asian economic crisis curbed oil demand, leading to a price slump to $10 a barrel.

That was PRE-PUTIN!! Oil didn't fall because of OPEC, it fell because Yeltsin allowed the oil to flow like mad out of Russia no matter what. Putin took care of this. There will be no flood of cheap, easy oil, trust me, again. Unlike the various oil kingdoms, Russia is not just a big producer but is also a miltary power as well as other big things like 'empire' big. And unlike Saudi Arabia, Russia has many friends and allies who are either non-OPEC, opposed to OPEC or are in OPEC but are pissed about the Saudis using OPEC to feather their US/UK nests.

Venezuela will make more money per barrel if they coordinate their pumping with Russia. Any excess from the dying Ghawar fields will fail in the mission of lowering prices if the other three big producers cut their production. For they want 'x' # of $ in total so if they keep up the price, cutting production won't matter too much if they also have industry which Russia certainly has. This ends up being 'money in the bank' as future oil production while the Ghawar fields suddenly collapse from too-fast pumping.

From Rian.Russia:

TEHRAN, September 11 (RIA Novosti) -Iranian Foreign Minister Manouchehr Mottaki will arrive in Moscow Tuesday to attend a session of the Iran-Russia Joint Economic Commission, the Iranian agency IRNA said.

Mottaki is expected to meet with the Russian Prime Minister, Mikhail Fradkov, the speaker of the State Duma, Boris Gryzlov, and the Director of the Federal Atomic Energy Agency (Rosatom), Sergei Kiriyenko.

The officials will also discuss regional issues and the summit of the Caspian Sea region nations in Tehran to be held mid-October.

See? They are coordinating their response. As I fully expected. And this is the problem for the US: we can't just shove Mexico and Saudi Arabia to feed our fantastical appetite for more and more energy. They can't support us anymore than Japan can support our banking needs. We must do business with China and Russia and obviously, Venezuela. And we don't want to do it, we want to rule them. This lunatic desire to have all things our own way is very childish and dangerous.

From Xinhua:

China will vigorously promote energy conservation and emissions reduction to tackle climate change and promote sustainable development, Vice Premier Zeng Peiyan said on Tuesday.

"In order to ease the conflict between economic development and environmental protection, China will stick to the concept of human-oriented and scientific development," Zeng told the opening ceremony of an international forum of Nobel laureates and world-renowned economists.

And what if China finally begins their long-planned (again, since 1980) push to have 50% of their energy come from wind and solar? They have been intent on this for a long time and they knew they had to do other things first, I told them, 'Use the cheap oil energy but plan to begin replacing it by 2010.' I told the US, 'The window of opportunity will begin to close on our fingers after 2000 and before 2010!'

And here we are, wasting our time, building houses in inappropriate places with inappropriate architecture.

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Comments

[Al]

You're right, the people of Mexico see nothing of the oil profits, it's like Iran was prior to Moussadegh. Cantarell is hella past it's peak. Without oil $ Mexico has nothing, and NAFTA looting did nobody any good. AMLO might have done some good had PAN not Bush'd the election. Even more desperate people will be heading north, just in time for US politicians to exploit as a wedge issue.

[Katy]

Stagflation isn't when bucks go into rut but when the bucks fall into a rut.

Now that's a funny joke.

[Canuck]

The numbers for your charts seem off particularly in the case of Canada. Possible causes listed below for this.

“In Canada, the government holds only 3.8 percent of the country's foreign exchange reserves. In Italy the proportion is 3.5 percent; in Germany, 2.1 percent; the United States, 1.7 percent; France, 1.5 percent; and in Britain, a mere 0.5 percent. The British government only holds US$43 billion of foreign exchange reserves. Almost all Britain's foreign exchange assets are held privately, but if they were taken into consideration, the country's assets in foreign exchange would be US$8.28 trillion, far higher than those of China.”

http://english.peopledaily.com.cn/200611
/17/eng20061117_322613.html

Here’s some stats;

Canada official forex holdings:

40,634bn

http://www.bankofcanada.ca/en/rates/
reserves.html

Rational for the BOC funds

Foreign Exchange Reserves
The Bank also manages the government's foreign exchange reserves. These reserves provide general liquidity for the government and help promote orderly conditions in the Canadian-dollar foreign exchange market. On very rare occasions the Bank may directly intervene in the market, to counter disruptive short-term movements in the Canadian dollar. More.

http://www.bankofcanada.ca/en/about/
funds.html

***************

Alberta Government Single year budget surplus 2007;

2.5bn

http://www.albertaindex.com/content/view
/211/9/

Official = 2.2bn

http://www.alberta.ca/budget2007/

Alberta Heritage trust fund (et al);

40bn

In an overdue move, Alberta’s government has appointed an independent expert panel to look into the best use of the province’s savings and investment funds, including the Alberta Heritage Savings Trust Fund, amounting to nearly $40 billion.

http://www.albertaindex.com/content/view
/204/9/

2006 Alberta Budget surplus

8.7bn

http://www.cbc.ca/canada/edmonton/story/
2006/06/26/alberta-surplus.html

Recap: A single province, Alberta, alone holds the equivalent of the Bank of Canada forex reserves. This does not cover any other provinces or private holdings. So the peoples daily position noted above seems to carry some weight.

[John]

There is so very much oil in the Gulf of Mexico, it's staggering. Notice how a certain Bushie governor of Florida allowed any drilling for it to be blocked!

I personally think a certain set of somebodies has the idea of exhausting Arab and Russian oil before beginning to tap our many close-at-hand reserves. This strategy runs parallel to the idea of a huge, global transfer of wealth from the poor and middle classes to the robber barrons of oil.

I also have utterly no use for Putin gaining control of any signifigant part of the world. I do wish to see the Russian people fare better than they did under the bloodsuckers who took over in the wake of the USSR's collapse, but I do not see Putin as some great liberator of the oppressed. He's basically just a very smart thug.

It's not as if Russia and China running things is good for the world. It isn't, and stands no chance of being so. The Arabs will still be victimized, the Jews will once again have to fear for their lives (the overall intelligence of Jewish people is higher than that of any other ethnicity, and the intelligent are always the chief threat to those in power—now add that to what the ADF/Israeli bunch has been up to all these years { http://www.normanfinkelstein.com }, and this isn't hard to predict), and non-Slavic Europeans (and, of course, their American/Australian/Kiwi cousins) will be permanently in the crosshairs.

China and Russia have tried to rule the world for millenia. As I am of primarily Ango-Saxon heritage, and if it's going to be them or us, well, I choose us.

PS: Is there some reason the comment submission form keeps stripping out my formatting tags?! Grrrrr.