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Iraq Slashes Projected Crude Output By Half Over Next 5 Years

Tyler Durden's picture




 

And another huge hit to future oil supply. After Goldman released a report on Friday, backtracking on its April recommendation that clients sell crude, instead warning that "critically tight supply-demand fundamentals" will likely cause oil prices to "return to or
surpass the recent highs by next year", "should Libyan oil supplies remain off the market", which it now appears they will considering Gadaffi is winning the Libyan civil war against the West-backed rebellion, here comes a stunner out of Iraq which has just slashed its 2017 oil production estimate from 12 million barrels to just 6.5-7 million bbpd. Oddly enough, Iraq is being rational: "Baghdad believes it would not be in its interests to try to achieve the
12 million target by 2017 because boosting global supply would depress
prices
." Who would have though a cartel would think of itself first... Surely, this is great news for Saudi Arabia which will promise to hike oil production and replace the missing output only for it to be discovered a few months later that not only did it not to do that (as we just discovered now following the whole Libya fiasco), but that it just does not have the excess capacity. And, of course, "speculators" will be blamed once they take WTI from $97 to $140 daring to discount the future price of oil in a (inflationary) world in which demand increases by 50% over a decade, even as supply continues to trickle down with each passing year. In other words, the CME margin hike crew is actively studying how many margin hikes it will take to break the back of the recently record number of non-commercial net specs... for at least a week or two, especially once the Chairman goes to town with the printer Turbo button. And elsewhere, the upcoming scarcity of lubricating petroleum byproducts is about to be felt through the entire supply (and demand) chain.

From The Australian:

The country's Oil Ministry, with backing from the Prime Minister Nouri al-Maliki, will set a new target to produce between 6.5 million and 7 million barrels per day by 2017, down from original plans to pump 12 million barrels, according to industry insiders.

Iraq, which is a member of the OPEC cartel that pumps 40 per cent of the world's oil, produces about 2.68 million barrels a day, barely higher than under Saddam Hussein.

It had been hoped that with a huge injection of foreign investment, it would be able to challenge Saudi Arabia as the world's biggest oil exporter this decade.

Confirmation it has scrapped the old target will add to fears that global supply will be unable to keep pace with demand in coming years.

As usual, the 'conspiracy of optimism' got the better fo everyone. And we can't wait to see if the Libyan, Siryan and Yemeni problems spread to Iraq... and/or Iran.

It is understood that government negotiations to change the long-term service agreements signed by companies in the past two years based on the old production target will begin soon.

Analysts said companies would seek improved terms to compensate them for losing out on revenue, which at present is earned for each barrel of oil produced above a base target.

Baghdad believes it would not be in its interests to try to achieve the 12 million target by 2017 because boosting global supply would depress prices.

No demand?

Ministers also argue that there is not sufficient demand for the extra oil, despite soaring prices. Last month, Saudi Arabia cut its output by 800,000 barrels a day after pumping more in response to the political crisis in North Africa, complaining that the extra crude was sitting in tankers with no customers.

High oil prices, which have doubled since the 12 million target was set two years ago, will compensate Iraq for the lower production. Ministers also recognise that creaky pipelines and storage facilities could not cope with such an increase.

The International Energy Agency estimates that investment of more than $US160 billion ($149bn) would be needed to meet the target.

So perhaps the Chairman was not lying that the end price of commodities is determined by supply and demand. The only qualifier is that while crude will surely have a $2 handle and three digits in it in several years (forcing inflation to spike far higher than where it is now in order to offset the pricing impact on the broader population), in the interim volatility in commodities will surge to unprecedented levels (as we expected back in the fall of 2010) as it takes our speculators on both bullish and bearish extremes, invites in the HFT crew to make price swings even more ridiculous, and forcing the Fed to step in and take over this vertical that it still does not control, after already having taken charge of the fixed income and equity markets. And with that, the last pseudo-unmanipulated product will succumb to central planning.

h/t Escape Key

 

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Sun, 05/08/2011 - 16:22 | 1253611 Hammer Time
Hammer Time's picture

peak oil is so 2005

Sun, 05/08/2011 - 16:50 | 1253684 Ruffcut
Ruffcut's picture

peak cheap oil is the new vogue.

Pay at the pump bitchezzz.....

Oil is the trigger to all things inflationary, war, currency flucks, etc.

Gold and silver, don't mean shit here except against ponzi fiat.

Sun, 05/08/2011 - 16:55 | 1253694 Flakmeister
Flakmeister's picture

  Peak oil is ultimately deflationary, as is the rising cost of oil. Forget fiat, look at the Gold to oil ratio....

Sun, 05/08/2011 - 17:13 | 1253749 traderjoe
traderjoe's picture

No, it's biflationary.

Sun, 05/08/2011 - 17:27 | 1253786 Flakmeister
Flakmeister's picture

I won't quibble with you.... It must be ultimately deflationary as an increasing fraction of disposable income is required for basic energy needs...

Sun, 05/08/2011 - 18:28 | 1253927 traderjoe
traderjoe's picture

The ultimate collapse will be a bitch.

Sun, 05/08/2011 - 18:40 | 1253945 Flakmeister
Flakmeister's picture

No argument there

Sun, 05/08/2011 - 19:21 | 1254036 knukles
knukles's picture

So I should call my wife ultimate collapse?  'Cept she argues.

Sun, 05/08/2011 - 20:51 | 1254239 hedgeless_horseman
hedgeless_horseman's picture

Who needs oil when we have mint juleps to lubricate the joints and fuel the mind?

 

Sun, 05/08/2011 - 20:23 | 1254170 trav7777
trav7777's picture

Flak, depends upon what you mean by that...oil supply decline means that debts predicated upon a future of expansion aren't worth par.  That is devaluationary, if we use monetarist definitions of inflation and deflation.

Any debt simply has to be discounted against the reality of a future of less.  That includes the FRN.

Iraq won't get to 6mbpd by 2017 either...that's a mere 6 years away.

There goes 6mbpd of "expectations" right the fuck up in smoke.  IEA is going to have to adjust again.

Sun, 05/08/2011 - 20:44 | 1254218 Flakmeister
Flakmeister's picture

No real argument here, I equate devaluation of future obligations to be deflationary. You do agree though that loss of disposable income is deflationary.

So maybe I didn't state it correctly. But, hey, I never took economics, I was too busy learning useful information....

Re: 6 million, yeah, probabaly a pipe (line) dream. I do not doubt they will bump it up a bit though. Too little, too late...

Sun, 05/08/2011 - 22:33 | 1254437 Worker Bee
Worker Bee's picture

Entropy is the Law.

Entropy by defintion is deflationary.

 

Mon, 05/09/2011 - 03:14 | 1254767 Eric Cartman
Eric Cartman's picture

Okay Peter Schiff. Thanks.

Mon, 05/09/2011 - 07:14 | 1254857 j0nx
j0nx's picture

There's that 'D' word again here on ZH. Heretic, Heretic!...

Sun, 05/08/2011 - 18:49 | 1253974 PulauHantu29
PulauHantu29's picture

But...but..."you can't eat oil!"

LMAO!!!!!!!!!!!!!!!!!

It's all 'bout PMs and oil...hold tight and prosper.

Sun, 05/08/2011 - 19:45 | 1254086 traderjoe
traderjoe's picture

IMHO - pm's are not held to 'prosper', they're held to maintain, to preserve, and to make it through to the other side. Fellow citizens will be much less likely to accept pm's as money if they are enriching a new set of 'elites'.

Sun, 05/08/2011 - 21:04 | 1254267 cossack55
cossack55's picture

I think he meant prosper as in "continue to live".

Sun, 05/08/2011 - 22:18 | 1254410 traderjoe
traderjoe's picture

Perhaps. But I get tired/wary of all of the excitement around here with how 'rich' people are going to get with their pm's. I believe a reset is inevitable and that pm's are a core aspect of preparation. But I have no illusion that the reset won't be really painful. And that in many ways, these are the 'good times'.

Sun, 05/08/2011 - 23:49 | 1254587 PulauHantu29
PulauHantu29's picture

cossack, you are 100% correct! Gold will allow you to maintain wealth in realtion to the rapidly expanding money supply and loss of purchasing power of the dollar (and most other paper currencies). I don't plan on getting wealthy from it, but I just want to be able to enjoy a Snickers Bar, bowl of berries, etc. Look at what the dollar will buy today? A 12 ounce "pound cake" that used to be guess what, A Pound!

 

GL! to all bag holders...unless they work on Wall Street and are getting one of those $800,000 Bonuses at GS, they need to think and read....education is the key to survival.

Sun, 05/08/2011 - 17:13 | 1253750 Manthong
Manthong's picture

Better to hold those reserves until they can be revalued in whatever the SDR mix is to replace the dollar. Iraq certainly doesn't owe anything to Americans after what they've done to the country. 

Sun, 05/08/2011 - 18:02 | 1253864 topcallingtroll
topcallingtroll's picture

SDR transition start date 2022. Full implementation 2028.
Count on it.

Mon, 05/09/2011 - 10:05 | 1255213 i-dog
i-dog's picture

There'll be nobody left with any money in Amerika by then (just the FEMA camp guards).

Sun, 05/08/2011 - 16:28 | 1253623 Hephasteus
Hephasteus's picture

Everytime I try to start a 5 million man oil sucking army that uses more oil than a country of 150 million people they go and pull this shit.

At this rate all I'll be able to do is mount a mini gun in the trunk of my camry and weld some steel plates on it. The man is always keeping me down.

Sun, 05/08/2011 - 17:34 | 1253797 HowardBeale
HowardBeale's picture

Still laughing...

Sun, 05/08/2011 - 17:58 | 1253846 mynhair
mynhair's picture

A Camry trunk has room for a minigun?  Wow!  Better get me one 'o those smoking 20MM quads for the back of my Escape hybrid.

Sun, 05/08/2011 - 18:04 | 1253869 augie
Mon, 05/09/2011 - 00:38 | 1254666 Dgthr of Isis
Dgthr of Isis's picture

FOFLMBO!

Sun, 05/08/2011 - 16:29 | 1253625 I am Jobe
I am Jobe's picture

And the hits keep on coming for the USA. Keep chanting USA USA in big deep shit

Sun, 05/08/2011 - 17:16 | 1253752 Weisbrot
Weisbrot's picture

the bears may have something to say about that........

Sun, 05/08/2011 - 18:13 | 1253894 css1971
css1971's picture

It's all the same problem. Just the 1 cause.

 

Sun, 05/08/2011 - 16:35 | 1253636 cossack55
cossack55's picture

Margin Hike Bitchezzzz!!!!!

Sun, 05/08/2011 - 16:38 | 1253643 lettuce
lettuce's picture

is this iraq's big "F U" to the USA?

Sun, 05/08/2011 - 18:49 | 1253966 friendly manitoba
friendly manitoba's picture

 iraq thinking about " capturing the 700 mil  cu ft of natural gas it flares at its oilfields each day "  ...  found that startling 

Sun, 05/08/2011 - 20:55 | 1254250 hedgeless_horseman
hedgeless_horseman's picture

Pipelines through Turkey have been more of a bugaboo than Russia transporting through Ukraine. 

Mon, 05/09/2011 - 00:35 | 1254665 Missiondweller
Missiondweller's picture

I would call it just one of many FU's to the US, and I live in SF, USA.

Sun, 05/08/2011 - 16:37 | 1253651 uhb
uhb's picture

I guess the price of oil without financial investors would swing somewhere between 75$ and 100$ pb. Swings above and below are extremes added by the everlasting fight of bulls & bears

Sun, 05/08/2011 - 16:40 | 1253653 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

You can't output want you ain't got.

Sun, 05/08/2011 - 16:54 | 1253690 Muir
Muir's picture

So which is it?

"Ministers also argue that there is not sufficient demand for the extra oil, despite soaring prices. Last month, Saudi Arabia cut its output by 800,000 barrels a day after pumping more in response to the political crisis in North Africa, complaining that the extra crude was sitting in tankers with no customers."

Sun, 05/08/2011 - 16:55 | 1253700 Flakmeister
Flakmeister's picture

  There is a grain of truth in the Saudi statement. The world refining capacity for Arabian Heavy is well supplied. Now those refineries that need lighter sweeter crude are running below capacity because of a lack of feedstock...

Sun, 05/08/2011 - 19:06 | 1254009 Muir
Muir's picture

thank you

Sun, 05/08/2011 - 20:26 | 1254178 trav7777
trav7777's picture

KSA also may have been employing surge production capacity for this extra 800kbpd.

This would not be the first time they've ramped into a spike and then backed off.  They are likely in decline, thus flat out in terms of production.

Sun, 05/08/2011 - 20:29 | 1254192 Flakmeister
Flakmeister's picture

Wondering when your smiling face would appear...

Yes, they are masters of managing their ~60 million barrel tank farm.

They ain't altruistic but all things being equal their management of "The Precious" has been fairly even handed....It could have been in worse hands.

Sun, 05/08/2011 - 22:00 | 1254369 Mec-sick-o
Mec-sick-o's picture

Better get used to sour crude oil.

Sun, 05/08/2011 - 16:46 | 1253667 knukles
knukles's picture

After all that shit all we get's a pile of dirt?
Maybe if we all hold hands and sing Kumbaya?

Sun, 05/08/2011 - 16:47 | 1253681 f16hoser
f16hoser's picture

This should help the Iraqi Dinar revalue to $3.00+

 

Sun, 05/08/2011 - 17:04 | 1253730 hack3434
hack3434's picture

Oh no!! The Dinar bugs are back. 

Sun, 05/08/2011 - 17:43 | 1253822 Holodomor2012
Holodomor2012's picture

You can call me anything you want.  Just don't call me late for dinar.

Sun, 05/08/2011 - 16:50 | 1253682 Muir
Muir's picture

Waiting for someone to say that this is bullish for silver.

Sun, 05/08/2011 - 16:54 | 1253691 lettuce
lettuce's picture

you see, with the additional long term revenue that iraqis will receive, they will be able to reinvest the proceeds of oil sales into their seventy-third most loved asset - silver jewelry. so you see, buy silver. clearly.

Sun, 05/08/2011 - 18:19 | 1253906 Dr. Porkchop
Dr. Porkchop's picture

lettuce not be so hasty to make radish judgements.

Sun, 05/08/2011 - 18:39 | 1253942 lettuce
lettuce's picture

sorry mate, those bouncing jugs were distracting my sense of reality.

Sun, 05/08/2011 - 18:10 | 1253886 css1971
css1971's picture

Anything which uses oil to dig it out of the ground.

Anything which uses oil to transport it.

 

'Tis bearish for anything that uses said things.

Sun, 05/08/2011 - 16:53 | 1253689 Flakmeister
Flakmeister's picture

Six million sounds about right given the P+P resource base. Hell Saudi Arabia pushed hard on the greatest field on the planet and topped out at about 10. There ain't no second coming of Ghawar and its Super-K zones in Iraq; 12 million bbpd was always a figment of Dick Cheneys oil-lubricated sexual fantasies...

Sun, 05/08/2011 - 16:57 | 1253697 RobotTrader
RobotTrader's picture

Perfect reason for Uncle Gorilla to institute 5 margin hikes on energy futures of all types and stripes.

Of course, they will blame it on the speculators, and say that the top 1% of hedge funds pushing up the price of the futures need to be "Amaranthed" in order to calm the masses and bring gasoline back down to $3/gal.

Then, shortly thereafter, Donald Trump will be flown over there to give Iraq the "Boys, you had your fun, but its over" speech.

 

Sun, 05/08/2011 - 16:59 | 1253703 Flakmeister
Flakmeister's picture

You got this sarcasm thing down so pat, that sometimes even I have a hard time figuring out when you are serious...

Sun, 05/08/2011 - 17:58 | 1253855 mynhair
mynhair's picture

Is that a nipple slip?

Sun, 05/08/2011 - 19:51 | 1254102 Coast Watcher
Coast Watcher's picture

You noticed, too?

Sun, 05/08/2011 - 20:05 | 1254125 serotonindumptruck
serotonindumptruck's picture

No, it's a deflationary collapse.

Sun, 05/08/2011 - 16:55 | 1253699 buzzsaw99
buzzsaw99's picture

Good for them. Oil in the ground is better than benniebux in the bank, especially one of our banks.

Sun, 05/08/2011 - 17:58 | 1253856 mynhair
mynhair's picture

Ding!  Hence no drilling in the US.

Sun, 05/08/2011 - 18:10 | 1253881 Flakmeister
Flakmeister's picture

The US is the most drilled place in the planet.

http://tonto.eia.doe.gov/dnav/pet/pet_crd_drill_s1_m.htm

and

http://tonto.eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=E_ERTRRO_XR0_NUS_C&f=M

Oil Rigs in operation are at 30 year highs

Sun, 05/08/2011 - 18:18 | 1253896 mynhair
mynhair's picture

See that doe.gov in your links?  Sure you don't want to include some bls.gov links?

Maybe a couple of DailyKos pull quotes?

Sun, 05/08/2011 - 18:31 | 1253932 Flakmeister
Flakmeister's picture

Maybe you could google Baker-Hughes Rig Counts...  they are the source of the data but they don't provide pretty plots spanning 35 years...

Just keep on believing what you want to believe, maybe if you wish upon a star your dream will come true...

While you are at it, google BHI Saudi Arabia Rig count...

Sun, 05/08/2011 - 18:22 | 1253916 Dr. Porkchop
Dr. Porkchop's picture

She's been drilled more times than.. oh it's too easy.

Sun, 05/08/2011 - 18:07 | 1253871 Dapper Dan
Dapper Dan's picture

Your comment "oil in the ground " remark reminds me of an article I read a few years ago that help me to understand the relationship of oil and gold, hopefully you have read it, if not I posted a link below.

Found on a fofoa site, a guy named Aristotle.

It is important here to realize the attitude of OPEC, and notably the Middle East. In the mid 1970's, the finance ministers of both Kuwait and Saudi Arabia stressed that their needs were only to provide for the welfare of their citizens, and that oil in the ground is better than paper money. Who from the West can argue with that?

http://www.usagold.com/halloffame.html#anchor318280

Sun, 05/08/2011 - 18:34 | 1253937 buzzsaw99
buzzsaw99's picture

thanks for the link.

clownbux are debauched there will always be more and they are truly infinite.

gold is hoarded, there is a fixed amount on planet earth and it will remain much the same.

oil is consumed and every day there is less of it.

therefore oil is better than gold is better than clownbux.

Sun, 05/08/2011 - 16:59 | 1253706 The Alarmist
The Alarmist's picture

Time to send in the Donald and see if he is go or show.

Sun, 05/08/2011 - 17:03 | 1253718 Flakmeister
Flakmeister's picture

Release the Kraken! or is it "Release the Kracked"

What is he going to do? Threaten to release that wolverine that he is wearing on his head?

Sun, 05/08/2011 - 17:04 | 1253729 Yield2Greatness
Yield2Greatness's picture

This will not stand!!!  Begin QE3 NOW, activate Plan S7c, wake the queen, have the car waiting, cancel Christmas,,,

Sun, 05/08/2011 - 17:48 | 1253826 Pepe
Pepe's picture

Walt disney needs to design a new evil. That's the solution

Sun, 05/08/2011 - 17:54 | 1253843 augie
augie's picture

I think canceling christmas is a bit extreme.

Sun, 05/08/2011 - 17:08 | 1253738 nah
nah's picture

if the tea party doesnt vote to raise the .gov debt ceiling and lie about US economic fundementals, letting the globalist government political forces divy up the resources of the US empire while destroying our credibility

.

we will be forced into WWIII lol morons

 

Sun, 05/08/2011 - 17:24 | 1253774 Weisbrot
Weisbrot's picture

why not just nationalize the frb, and call it a day?

Sun, 05/08/2011 - 17:41 | 1253814 Flakmeister
Flakmeister's picture

I woud prefer  Euthanize

Sun, 05/08/2011 - 17:54 | 1253845 topcallingtroll
topcallingtroll's picture

I am counting on the tea party to perform a bureaucratectomy and chop off about half the government. Yes we should include the military industrial complex. Shuda listened to Eisenhower.

We have a 100 bases in germany? I say come on!

Sun, 05/08/2011 - 18:00 | 1253863 mynhair
mynhair's picture

Somebody needs to drink their beer.

Sun, 05/08/2011 - 18:09 | 1253879 BKbroiler
BKbroiler's picture

Wait, he may be on to something here...  Teabaggers could be useful in that respect.  The irony of a fringe right movement being responsible for a weaker military complex would be incredible.

Sun, 05/08/2011 - 18:13 | 1253885 mynhair
mynhair's picture

The German's beer.  Somebody needs to help them float Greece's boat.

Hence, lots of beer-thirsty bases.  Other than DG, I see no reason for the other bases.

Sun, 05/08/2011 - 18:23 | 1253915 BKbroiler
BKbroiler's picture

 Somebody needs to help them float Greece's boat.

Talk about good money after bad.  Can't wait for the island auctions to start.  I'm not sure about the beer complex theory.  Germans could easily pick up the slack.

Sun, 05/08/2011 - 17:10 | 1253747 Amish Hacker
Amish Hacker's picture

"the upcoming scarcity of lubricating petroleum byproducts"

You waited until the US taxpayer was bent over and holding his ankles with both hands to tell us about this?



Sun, 05/08/2011 - 17:20 | 1253756 CrashisOptimistic
CrashisOptimistic's picture

Several points:

1) This is old news.  By a few days.  The part about it not being in Iraq's interests to produce at 12 mbpd is like saying it would not be in your best interests to walk in and ask your bank manager for a gift of 12 million dollars.  The problem is after he gives it to you, then you'd have to deal with taxes, worry about lawyers targeting you for lawsuits, all sorts of bother.  So best not to ask for the money.  As if it was possible anyway.

2) 6mbpd is unlikely by 2017.  It's unlikely by 2020.  Infrastructure is a word bandied about too glibly.  Truth of the matter is, the stuff probably can't come out of that ground that fast, so yeah, you can worry about pipeline capacity, but the first pipe to worry about is the one that's vertical.  Those are only so wide.

3) Iraq has been pumping oil for 50 years.  There is also the usual glib adding of new production to old production to get the total, but of course that's why it's a differential equation and not algebra.  The old fields die.  They can't hold their production rate.  It's sprinting up a down escalator.

4) MOST IMPORTANT . . . IEA was depending on 12 mbpd by 2017.  They tend to take government numbers as truth, almost by regulation.  This is going to punch a 6 mbpd hole in their plans for countering the relentless global down escalator.  Their next report will be devastating.

Sun, 05/08/2011 - 18:05 | 1253873 css1971
css1971's picture

4) MOST IMPORTANT . . . IEA was depending on 12 mbpd by 2017.  They tend to take government numbers as truth, almost by regulation.  This is going to punch a 6 mbpd hole in their plans for countering the relentless global down escalator.  Their next report will be devastating.

No, it absolutely won't. They don't rock the boat, however they've been leaving little hints like this one:

http://energyocm.files.wordpress.com/2011/01/iea-world-oil-production-ch...

"fields yet to be developed or found"

LOL. Might as well have called it "Fairy dust and unicorn piss".

Sun, 05/08/2011 - 21:34 | 1254318 samsara
samsara's picture

Great interview btw,  Max does Peak Oil.  Kurt does a great job.  They take peak oil and financial implications.  Very Good.

 

Max Keiser interviews Kurt Cobb

http://www.energybulletin.net/media/2011-05-09/max-keiser-interviews-kurt-cobb

Sun, 05/08/2011 - 17:22 | 1253771 Bodmas
Bodmas's picture

This is just an acknowledgement of what anyone with vague knowledge of Iraqi oil production potential already knew - the previous target was, to coin a phrase, vintage bollocks.

 

Sun, 05/08/2011 - 17:36 | 1253810 Flakmeister
Flakmeister's picture

Never mind the Bollocks!

Sun, 05/08/2011 - 17:51 | 1253831 topcallingtroll
topcallingtroll's picture

Here come the Sex Pistols.

Johnny Rotten....patron saint and inspiration for yobs everywhere.

Sun, 05/08/2011 - 17:57 | 1253853 augie
augie's picture

i'd rather be a yob than a chav.

Sun, 05/08/2011 - 17:34 | 1253800 Worker Bee
Worker Bee's picture

But but but..Peak Oil is a myth..a cabal of bankers from mars and the oil industry along with the CFR met on the faked moon landing set. They all sat around with Jesus and discussed how to create a perceived shortage of oil. I saw this on tinfoilhat.com dammit!!

Sun, 05/08/2011 - 17:35 | 1253805 anynonmous
anynonmous's picture

NO, this is not from The Onion

Schumer Seeks More Funding for Rail Safety After Terrorist Plan Revealed

More money would help enhance  ...  monitoring at stations throughout the country

He also called for an Amtrak “No Ride List” to keep suspected terrorists from boarding U.S. trains.

http://www.bloomberg.com/news/2011-05-08/schumer-seeks-more-funding-for-...

Sun, 05/08/2011 - 18:02 | 1253859 augie
augie's picture

that high speed rail project was in trouble? i was wondering what the motive was for the train derailment lie. Now i guess we know: more funding for high speed rail. MORE PIES DAMNIT MORE PIES!!

Sun, 05/08/2011 - 18:50 | 1253976 sabra1
sabra1's picture

the excuse needed to place TSA human microwaves at every train station! may someone with large hands grope thee!

Sun, 05/08/2011 - 18:53 | 1253983 Worker Bee
Worker Bee's picture

Cheap Date.

 

Sun, 05/08/2011 - 19:26 | 1254050 knukles
knukles's picture

And then how the fuck are the financial barrons of Wall Street gonna get to and from Greenwich, New Canaan and Wesport?

 

Sun, 05/08/2011 - 20:44 | 1254225 cosmictrainwreck
cosmictrainwreck's picture

car-pool

Sun, 05/08/2011 - 21:05 | 1254269 chubbar
chubbar's picture

It's pretty clear TPTB are locking down America (with the exception of the border or anything involving illegals as that furthers the watering down of our culture). The trains, buses and probably highways will at some point involve a frisk/scan/pat down/cavity search. It could not be any clearer, please wake the fuck up.

Sun, 05/08/2011 - 17:45 | 1253824 IdioTsincracY
IdioTsincracY's picture

Of course Peak Oil is a myth. In fact here is serious research about that brought to you courtesy of the news outlet of the Republican party [You know the party that made fun of Carter for warning us about this ... blocked all attempts by Clinton to raise Gas mileage standards in a meaningful way ... and then made fun of Al Gore for proposing something serious about this ... and everytime the American people greatly repay the Republican party for all the fun. Fun fun fun!!]

Anyway, here it is:

http://www.foxnews.com/opinion/2010/12/29/myths-oil/

 

Sun, 05/08/2011 - 18:02 | 1253860 Flakmeister
Flakmeister's picture

Anybody who uses the phrase "running out of oil" automatically discredits themselves.

Also, CO2 emissions from oil are a red herring, very cute how he played that one. A variation on "Bait and Switch"

Just another fucking shill...

Sun, 05/08/2011 - 18:38 | 1253941 Flakmeister
Flakmeister's picture

Come up with a better link... my computer doesnt like websites that like to take over...

So what is your theory?

1) The communist vegens are stifling oil production?

2) It is a massive conspiracy by Big Oil and the Illuminati?

3) Obama has a secret plan to deny your god-given right to a 454 with a 6-pack? 

Sun, 05/08/2011 - 18:47 | 1253968 IdioTsincracY
IdioTsincracY's picture

It's just a chart showing CO2 emissions from oil, natural gas, and coal.....

Never mind my take ... what is yours?

Sun, 05/08/2011 - 19:00 | 1253996 Flakmeister
Flakmeister's picture

CO2 from oil is a necessary evil... However, I do have an issue with coal.

I have seen studies that show that burning our remaining 1.3 trillion barrels of oil endowment do not cause a serious problem for C02... Coal on the other hand is the planet killer.

 

Sun, 05/08/2011 - 19:08 | 1254005 IdioTsincracY
IdioTsincracY's picture

I agree with you, actually.

What bothers me is that the world has not done enough to incentivise the creation an implementation of new energy sources.

We keep being reactive, when we need to be proactive ...

Sun, 05/08/2011 - 19:49 | 1254098 Flakmeister
Flakmeister's picture

Yes, we are in agreement...

Mon, 05/09/2011 - 00:58 | 1254683 Dgthr of Isis
Dgthr of Isis's picture

Yes, and coal from Mountaintop Removal further aggravates the biosphere situation on many levels too numerous to go into here.
Also, nuclear processing generally burns lots of COAL.
So, to my mind, nuclear is nix even if it did not spread uncontainable radiation across the planet.

Sun, 05/08/2011 - 18:27 | 1253925 Dr. Porkchop
Dr. Porkchop's picture

The earth has a creamy center of abiotic caramel.

Sun, 05/08/2011 - 17:51 | 1253832 Urban Redneck
Urban Redneck's picture

Nouri al-Maliki just ignored the guys with US flag patches & M4s in his front yard and bitch slapped Barry and demanded to know where all his money was??? Strange weekend & a bad trend building off the Qdaff humiliation.

Sun, 05/08/2011 - 17:59 | 1253848 css1971
css1971's picture

This is old news. It has been clear for a couple of years that 12 million barrels is completely insane as a target. Half that is also simply not going to happen.

Google the oil drum for better research.

 

Sun, 05/08/2011 - 18:03 | 1253865 Flakmeister
Flakmeister's picture

Better yet, simply:

http://theoildrum.com/

Sun, 05/08/2011 - 18:17 | 1253901 css1971
css1971's picture

ok, yeah could have been clearer. I meant use the google search on the oil drum site.

I've been on it a while. If you do happen to see any of my comments, they gradually become less inane over time, as realisation and education do their work.

 

Sun, 05/08/2011 - 18:03 | 1253867 mynhair
mynhair's picture

Great.  Re-invade, and do it right this time.

Send DC in first.

Sun, 05/08/2011 - 18:16 | 1253893 BKbroiler
BKbroiler's picture

right, or like OBL said in his alleged will.. they invade first with their money, then the military..  

Send em Blankfein.

Sun, 05/08/2011 - 18:19 | 1253905 mynhair
mynhair's picture

...and Rosie pigO'Donnell and that fat twerp Moore.

Sun, 05/08/2011 - 18:32 | 1253934 BKbroiler
BKbroiler's picture

Moore is a fat slob and a great american.  Junk Away.

Sun, 05/08/2011 - 19:10 | 1254015 mynhair
mynhair's picture

(Guess they only junk pigO'Donnell posts.  It may be spelling, tho.)

Sun, 05/08/2011 - 19:56 | 1254113 BKbroiler
BKbroiler's picture

Junks are for punks. I'd rather talk shit. I got your back on the Odonnel part.  But anyone who takes on the banks, government, health care system, and military complex has my respect, even if it is in a self righteous bitchy little manner.

Sun, 05/08/2011 - 20:21 | 1254171 Flakmeister
Flakmeister's picture

Well said...

Sun, 05/08/2011 - 18:25 | 1253926 ejhickey
ejhickey's picture

"Kuwait will attempt to seize Iraqi oil assets abroad when international legal protections end on June 30 – a move that could upset fragile diplomatic talks and create problems for any international oil companies (IOCs) that are paid in crude."

Iraq Oil report- 4/14/2011

Sun, 05/08/2011 - 18:48 | 1253965 plocequ1
plocequ1's picture

More of a reason to drink till you get cancer of the soul. Who cares?

Sun, 05/08/2011 - 18:47 | 1253967 Worker Bee
Worker Bee's picture

Decreasing Complexity..sounds benign,like a camping trip without your Iphone.

Only its more like trying to run a nuclear power plant with a G.E.D. and cliff notes.

Sun, 05/08/2011 - 21:15 | 1254280 topcallingtroll
topcallingtroll's picture

Excellent analogy.

If we do have to power down in the next few decades it will be dangerous, very polluted, and definitely not a camping trip. Look how nasty and trashy the third world looks. I hope we never reach their low level of energy consumption.

Sun, 05/08/2011 - 22:20 | 1254415 Worker Bee
Worker Bee's picture

We are going to reach that point..no doubt. I think the question is how far and how fast?

I wonder sometimes...Is it better to move to a third world country now since they are already "set up" for a low energy existence? Not Somalia third world, maybe Latin America?

Sippping Pina Colada on some beach,watching it all burn sounds better than holed up in my apt in Houston watching it burn.

Mon, 05/09/2011 - 01:44 | 1254727 topcallingtroll
topcallingtroll's picture

Twont be that bad that it all burns down. We may not have heat in the winter. Intermittant summer power outages. Cars limited to one per multi generational families that go 40 miles between charges. Yeah it will look something like average per capita gdp of south america but that aint bad. The city and living in small spaces in densely populated areas will be fashionable. Walking and biking a couple miles to work is good exercise. It will be polluted crowded and stinky but it wont.collapse. we have yet to explore the frontiers of protein, unlike the chinese!

Sun, 05/08/2011 - 18:47 | 1253969 PulauHantu29
PulauHantu29's picture

Glad Goldman chased a few thousand out of USO so I could buy it real cheap.

Question is how much Goldman bought when it dropped? They probably scopped up a few hundred million shares on the cheap. Watch oil hit $160 (as Bank of America predicted) real fast.

LMAO!

Sun, 05/08/2011 - 18:56 | 1253986 silberblick
silberblick's picture

Here's a hilarious animation (as seen on maxkeiser.com) exhorting folks to get even against the banksters and government:

http://thesilvergoldhedge.blogspot.com/2011/05/join-sla-to-get-even-and-...

Sun, 05/08/2011 - 20:10 | 1254139 Heroic Couplet
Heroic Couplet's picture

Sounds like Peak Oil to me. The Economist magazine, several years ago, stated Saudia Arabia has the most oil, but Iraq has the oil that's easiest to get to.

Most Americans have figured out that Republican tax cuts do not create jobs. The wealth has gone into private pockets. Leaving the Bush tax cuts in place was supposed to create 2 million jobs. Where are they?

Wait til Americans re-consider global warming.

 

Sun, 05/08/2011 - 21:29 | 1254299 samsara
samsara's picture

Sounds like Peak Oil to me.

Max Does Peak Oil.  Very Good.

Max Keiser interviews Kurt Cobb

 

                    

http://www.energybulletin.net/media/2011-05-09/max-keiser-interviews-kurt-cobb

Sun, 05/08/2011 - 20:24 | 1254157 EnglishMajor
EnglishMajor's picture

Did you all know that we only need to discover 4 more Saudi Arabia's to meet our projected needs by 2030?  "They" have known about peak for years. We're fucked because the Big Oil and the Military Industrial Complex has been at the wheel for far too long.  Is it surprising that resource wars were the only thing they could come up with to solve the problem?

 

"For we are opposed around the world by a monolithic and ruthless conspiracy that relies on covert means for expanding its sphere of influence--on infiltration instead of invasion, on subversion instead of elections, on intimidation instead of free choice, on guerrillas by night instead of armies by day. It is a system which has conscripted vast human and material resources into the building of a tightly knit, highly efficient machine that combines military, diplomatic, intelligence, economic, scientific and political operations.

Its preparations are concealed, not published. Its mistakes are buried not headlined. Its dissenters are silenced, not praised. No expenditure is questioned, no rumor is printed, no secret is revealed."


John F. Kennedy

April 27, 1961

 

Sun, 05/08/2011 - 22:26 | 1254425 Worker Bee
Worker Bee's picture

Our military knows whats up and have said as much.It was all put here without much fanfare..our future. I would like to thank the lame stream media for all the awesome reporting on this,and may you all rot like the propagandist you are.Sold your soul for prime time slot after Dancing with the stars. FUCK YOU!

http://www.peakoil.net/files/JOE2010.pdf

Sun, 05/08/2011 - 20:23 | 1254159 EnglishMajor
EnglishMajor's picture

 

That was in a speech to the American Newspaper Publishers Association.  Before “They” owned them all.

 

Sun, 05/08/2011 - 21:08 | 1254274 topcallingtroll
topcallingtroll's picture

The monolith he was talking about was communism, young pup.

The USSR China and european communist parties. The red menace. It was real at one point, and very deadly. It was at the height of its power and influence in the 60's.

Sun, 05/08/2011 - 21:50 | 1254346 EnglishMajor
EnglishMajor's picture

Okay, will you at least concede that it is likely no coincidence that he was killed shortly after signing Executive Order 11110 which would have given the Federal Government the power to bypass the Fed and print our own money backed by silver?

Sun, 05/08/2011 - 23:11 | 1254494 topcallingtroll
topcallingtroll's picture

It does bother me. Also that judge who was killed after declaring a dollar was not an FRN. I forgot his name.

Sun, 05/08/2011 - 23:26 | 1254544 Flakmeister
Flakmeister's picture

Damn...and I thought it was about the Goldman-Sach partners.

Mon, 05/09/2011 - 01:10 | 1254691 blunderdog
blunderdog's picture

tightly knit, highly efficient machine

Yep, for sure man, that's just like *so* descriptive of the international communist movement.  Totally.

Proof positive that JFK was just another asshole.

Sun, 05/08/2011 - 23:49 | 1254594 PulauHantu29
PulauHantu29's picture

You think this is news about Iraq cutting output, wait until SA reveals its true reserves whicj many say are lots less then they report.

Mon, 05/09/2011 - 01:09 | 1254693 blunderdog
blunderdog's picture

We never went into Iraq for the oil, anyways.  Come on, guys, it was like 9/11 and Hussein tried to kill Dubya's dad and he was worser than Hitler and they stoned women and stuff.  Now it's a free demockracy.

The satisfaction of a job well done and a war well won should be more than enough reward in itself.  Sheesh.  Ingrates.

Mon, 05/09/2011 - 03:06 | 1254764 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

There is not much oil in Iraq.

Mon, 05/09/2011 - 07:13 | 1254853 j0nx
j0nx's picture

But, but, but they told us when we went into Iraq that the oil would be used to rebuild Iraq and that America would get dividends on that oil. I want whoever said that to be immediately fired if he is still working in government and brought up on charges of perjeury and embezzlement. Lying Motherfuckers...

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