Energy News

Iran, Venezuela and China Are the New Axis of Oil

Elaine Meinel Supkis

While America has hot Gestapo sex dreams of victory, the real winners in today's energy/diplomatic fracas are writing contracts and making deals...with each other. The new Axis of Evil for us is what I call 'The Axis of Oil' and they represent the New World Order that is having a most bloody birth complete with placental fluids of dying babies in the Middle East.

China opens their oil burse.

SHANGHAI, Aug. 19 (Xinhua) -- Shanghai Petroleum Exchange, China's first commodity and futures exchange for oil products, reported robust trade on Friday, its first formal business day.

Friday's transactions of gasoline, which is among the first products to be traded on the exchange, totaled 72,120 tons and were valued at 253 million yuan (31.6 million U.S. dollars), the bourse's general manager Chen Zhenping told Xinhua.

Iran has made a deal: the nuclear armed Dragon in Asia will host a budding world oil futures market. And the Iranians will not sell their futures with euros rather than dollars, the Chinese intend to please all those incredibly stupid American economists who have whined like starved dogs for the Chinese to strengthen the yuan...by trading world oil in yuan, not dollars.

Kill a whole flock of birds with one effing huge fiscal stone!

Someday, I will sit on my deck outside and laugh as economists, wearing rags, struggle up my mountain with their begging bowls. 'Alms for the poor!' they will whine. I might toss them a yuan along with a zuchini or two.

Venezuela, China and Iran: the axis of oil.

Caracas (dpa) - Venezuelan President Hugo Chavez heads to Beijing today on his fourth visit to China, where he is expected to sign a deal to massively increase Venezuela's oil deliveries to the booming Chinese economy.

Afterwards, Chavez is to travel to Malaysia, Venezuelan officials said. Just recently, Chavez returned triumphant from a huge weapons shopping trip to Russia, and also visited Belarus, Qatar, Iran, Vietnam, Mali and Benin.

In China, Chavez is to sign contracts for China to build 18 tankers to haul more crude oil to Asia, and 12 drilling rigs to help Venezuela boost its oil production figures. The nation has failed to meet its Opec target for supplies since September 2002.

Venezuela isn't 'meeting its target supplies' because they are not frantically pumping oil to hold off bin Laden! Saudi Arabia has to keep the oil flowing at a mad rate or they die. Basically. They will die in the bitter end, anyway, but they hope they can keep themselves afloat by allying themselves with the very same people who are causing their own destruction.

Sic transit oilia.

America wants Venezuela to pump oil like mad. Mexico is doing this for America. This is why the oil companies and Bush had to steal the election there! And the turmoil there is growing, not lessening. Today, teachers took over a radio station to air complaints. Viva! Andele!

Iran knows they can't stand alone, they need allies. And since the USA has already openly told China we are preparing for nuclear war with China, the dragon has decided it is time to begin the reorganization of the New World Order which means the dollar dies when a trillion dollars in China's bank vault suddenly tsunami into the world's oil markets. Ahem.

I have covered this in detail, all over the place. When the USA slapped down the UNOCAL deal, the Chinese said they would take other measures and in due time, we get to enjoy seeing exactly what that means as they go for all our own oil sources! For we get most of our oil NOT from the Middle East but from much closer to home! And this is where the Chinese are concentrating their activities.

Some people say there is a permanent oil shortage developing right now.

by Jeffrey J. Brown: As of the May, 2006 EIA numbers, the world is down 1.3% since December, an annual decline rate of 3.1% per year, but the top 10 oil exporters are down 3.0%, an annual decline rate of 7.2%.

Note that consumption is growing quite rapidly in most of the exporting countries, and note that in most cases domestic consumption is satisfied before oil is exported. In the captioned article, I showed, using my "Export Land" model, how a 25% drop in oil production and a 20% increase in consumption (over a five year period) would lead to a 70% drop in net oil exports.

I estimate that net oil exports from the top exporters are probably down by 4% to 5% (over a five month period), an annual decline rate of as much as 12% per year, which suggests that exports from the top exporters are falling about three to four times faster than world oil production is falling

I designed my house to deal with high energy costs. It is very efficient. Windows facing south to catch steep winter sunrays. Check. Good air circulation coupled with well insulated walls and ceilings, all the ceilings and floors, insulated. Check. Good windows. Check. A big forest for years and years of firewood. Yup. I am ready. I even have Pegasus' stand-in, Sparky, to pull the carriage and wagon.

Is anyone else ready?

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Prudhoe Bay Pipe Mess Raises World Oil Prices

Elaine Meinel Supkis

Americans use more oil today than even three years ago. Since China is using more and more, too, we rushed to the Hubbert Oil Peak faster than formerly expected. America has done virtually nothing to prepare for this world event and now as we teeter on the edge, we better start talking about removing our troops from oil pumping nations and spend the money on retrofitting our culture to live with renewable technology.

On top of a significant percentage of Gulf wells still out of order thanks to hurricanes, now a pipeling closing!

By MARY PEMBERTON, Associated Press Writer 2 minutes ago
ANCHORAGE, Alaska - BP PLC said Monday it will replace 73 percent of the pipelines from the nation's largest oil field and that it could be closed for weeks or months, crimping the nation's oil supplies at a time of peak demand.

BP, the world's second-largest oil company, began shutting down the pipelines on Monday and said it would replace 16 miles of the 22 miles of transit pipeline in the Prudhoe Bay field following a leak discovered Sunday.

After the hurricanes, Europe and the US government tapped their reserves because Bush flipped out as he watched his popularity collapse. The minute he managed to stabilize prices, he went back to pretending there is no crisis and Americans were lied to about all this by the media that pretends to this very day, there is no crisis, no one has to change anything. The lack of urgency is notable. Bush was so emboldened, he and his Israeli buddies immediately went back to trying to provoke the Persian kitty cat into a tet a tet economic war and the plan was to bomb the kitty and then seize the Peacock throne and voila!

Endless oil for Israel and America! Whoopee! And the Shi'ites will be defeated and put into chains and forced to obey the colonial powers and all would be wine and roses! This stupid fantasy still is held by a significant number of powerful people who also believed that we would suck up the oil of Iraq and no one would dispute us there, either.

Here is a website that has a lot of history concerning all the issues of the North Slope and Prudhoe Bay.

National Geographic: Pinched between the Brooks Range and the Beaufort Sea, the plain within the refuge stretches west from the Yukon border more than a hundred miles, a flat expanse of tundra laced with tussock wetlands and braided rivers. In 1980, when the Alaska lands act expanded the refuge to embrace an area the size of South Carolina—and designated 8 million acres of it statutory wilderness—1.5 million acres (607,000 hectares) of the coastal plain was set aside under Section 1002 for study of its environmental value and petroleum potential. Hence the name: the 1002 Area.

Of all major publications, the National Geographic is probably one of the very first to start talking about the Hubbert Oil Peak. They are on the front lines of discussing the permutations involved with the dynamics of this geological event. Level headed and concise, this is one of the best sources of information on this topic.

Here is the PBS special on Prudhoe Bay.

The pipeline built to bring that oil to market was one of the greatest engineering feats of the 20th century. For more than three years, workers battled brutal Arctic weather to construct an eight hundred mile pipeline that traversed three mountain ranges, thirty-four rivers, and eight hundred streams, and that withstood earthquakes and sub-zero temperatures. The men, machines and money the pipeline brought to Alaska would forever transform what had long been regarded as America's last great wilderness. The pipeline's construction pitted America's need for energy against its desire to protect land and wildlife, sparking one of the most passionate conservation battles in American history.

People fear we can't live with our own planet's limitations. If we want to exceed it, we must move outwards to other sources elsewhere. But oil? This is strictly on this planet, period. And it is an accident of nature, it is severely limited in quantity and location. Once we accept this hard fact, we can move to deal with the consequences. Of course, the side issue of pollution including the most important, invisible pollution, CO2, will dissappear when the oil is gone. But we depend on oil and coal for nearly everything, it is the warp and woof of our civilization from top to bottom. Changing this will take a lot of expense, effort and sacrifices, none of which most humans are inclined to commit.

As I have pointed out, the political need to get Saudi Arabia to hyper-pump oil to hide the effects of the Iraq oil collapse due to our war, the Ghawar oil fields are now on the verge of literal collapse.

Rense: At the ASPO conference a well-connected industry insider who wishes not to be directly quoted told me that his own sources inside Saudi Arabia insist that production from Ghawar is now down to less than three million barrels per day, and that the Saudis are maintaining total production at only slowly dwindling levels by producing other fields at maximum rates. This, if true, would be a bombshell: most estimates give production from Ghawar at 5.5 Mb/d.

The three million barrels are riding on triple that in seawater. And just like the great oil fields in the Gulf of Mexico are causing subsidence, so it is in Saudi Arabia. Water isn't the same viscosity as oil. It is a much simpler structure, it being H2O and not a complex of carbon atoms. So when oil is pumped out and water injected, this gradually destabilizes the geology of a region depending on how stable it is. The Arabian Peninsula is being hammered by the huge continent of Africa. Like Iran, it has earthquakes due to this.

It is rather interesting to me that many of the regions we depend on for oil today are geologically dangerous. Or in dangerous weather situations. The early years of oil happened in relatively quiet, easy to handle locactions. So on top of faltering oil pumping we have a rather active earth and even more active weather system, makes it all very fragile, very responsive to events.

And the chief events are still human-generated. Bush wants war with Iran. Israel wants Iran destroyed or under their boot heels. So the price of oil will only go up and up and up. I see no reason for it to go down. The oil lords don't care. They get filthy rich went things go bad. The Hubbert Oil Peak will make the the richest people on earth, bar none. The only way we can stop them is to stop using oil for everything.

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