This following article may very well go down in history as the "shot heard round the world" in relationship to the Energy Revolution we are all on the brink of. Brink is an apt metaphor when we look at how we arrived to where we are today, which is mostly as a world numbed into submission and silent acceptance- the end game of a deadly global game of brinksmanship played by the entire global oil industry. The game strategy was to create doubt and disbelief surrounding the oil availability by the oil industry in tandem with the mainstream media. Had it not been for the Internet, this story would have never likely seen the light of day.
What I am referring to here is a 42 year campaign of smoke and mirrors waged against the people of planet Earth to obfuscate the moment when the peak of global crude oil production will be reached. The wake up call for the oil industry came in 1970 when a geologist working for Shell Oil, M.K. Hubbert, predicted that the US would peak in oil production, and it did. He made that prediction in the late 1950s based on his published oil well production theory he had developed during his career. Having proven his methodology, the oil industry was now in a position to make the ultimate peak oil calculation - the peak of global oil production.
They did and then decided to not share that with us. They even went so far as to lie publicly and tell us not to worry saying that there is plenty of oil. Well, that was partially true. There is still a lot of oil left, roughly half of all the oil ever discovered. The problem is that once oil production peaks globally, the production levels will suddenly drop 3-6% per year until it runs out, according to the proven peak oil theory, or until we shift to some other energy, or our demand for oil is otherwise destroyed. Why would the oil industry want to hide the arrival of peak oil? Simple, to drive maximum demand for oil at the moment of peak so that they can cash in on the anticipated price spike, which some economists estimate will reach over $400 per barrel. That is $400 a barrel for the same thing already discovered and sitting in the ground that they were only getting $12 for in 1998. Just imagine that! It costs about $1 per barrel to pump it out.
After the global wake up call in 1970, OPEC shortly formed thereafter in 1973 and oil reserve data became the most closely guarded industrial secret in the world. If anyone was telling, they were over estimating the amount in reserve (we now know in retrospect since several major oil companies have recently come out on record admitting that they had knowingly overstated their oil reserves). In short, what this amounts to is a criminal conspiracy by oil interests to cheat their investors and endanger the people of the world who are wholly dependent on oil for their essential basic needs in life, like food. Global food security depends on oil.
Economists predict global food supply chain and transportation meltdown at only $200/per barrel, what to speak of $400. They expect oil to remain at $400 per barrel for 6 months and after the demand has been destroyed (people's lives included, businesses, even nations who can not sustain without oil) they expect oil to settle in at a new permanent price level of $200/per barrel. They point out that the US economy is not sustainable if oil remains over $100 per barrel for a significant time.
This blog is starting with Peak Oil as the #1 immanent global crisis we now face. It is not climate change, asteroids, WWIII, or anything else. Once production enters a permanent decline, we will experience the greatest economic depression ever known, making the 1930s look like a cake walk - thank the oil industry for it all. Selfish greedy liars.
(ARCHIVING THIS ARTICLE FOR RESEARCH PURPOSES)
7:33 AM, Aug. 26, 2012
Written by
David Kamm
Special to news-press.com
FILED UNDER
Business
BUSINESSname
Every year in August there is a weeklong event, the Oil & Gas Conference. It’s in Denver and draws an international audience. By most accounts EnerCom is the best on the schedule.
This year 121 companies were scheduled to make presentations. If I were allowed to hear only one presentation, and attend one breakout session, I’d choose Core Labs — hands down.
“The maximum yearly oil production of the planet is taking place now!” That came from the CEO of a Netherlands-based company that has 70 offices in 50 countries worldwide. Their business is analyzing drilling results for all major companies and hundreds of smaller firms in the global energy-finding industry.
The company, Core Labs (NYSE: CLB $121), has a unique view of the big picture that few, if any, others could envision. As a byproduct of their normal business activities, CLB accumulates data about the current status of all major oil and gas basins on the planet. Annual revenues are $1 billion.
While an exploration company is drilling, CLB evaluates the rock samples and evaluates the potential of finding oil and gas below. After an oil or gas field is producing, CLB helps the well operators to extract the maximum amount of hydrocarbons from the reservoir. Information that extensive about all the major energy basins in 50 countries is a unique collection of data.
Never very bashful in the breakout session, CEO Dave Demshur readily offered his thoughts about the big energy picture. When queried about predictions of increased oil availability he took the under in most cases. Basically he looks for flat, or lower, future oil generation from Mexico, Iraq, Iran, North Sea, Russia, and the shocker — Saudi Arabia.
Demshur is a “peak oil” proponent, meaning that at some point the oil production of the planet will maximize, flatten, and then diminish. For the first time I can recall, he said we have reached the peak. His estimated planetary oil production in 2012 is an average 88 million barrels per day.
If anyone is more informed about the future supply of oil I haven’t found them. Let’s hope that his calculations are low, but if not — the 1970s may look like a picnic. By my pencil this is not a drill.
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