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The Deep State Strategy: Burn Everyone Else's Oil First, Leave Ours In The Ground
Submitted by Charles Hugh-Smith of OfTwoMinds blog,
The U.S. Deep State is in favor of Saudi Arabia's strategy of forcing production cuts on its rivals and marginal producers for two profound reasons.
It is widely presumed that if the U.S. government isn't actively concerned about the financial carnage being visited upon the domestic oil/gas sector, it should be actively concerned for self-evident reasons. These self-evident reasons include lay-offs, cratering profits and a mountain of shale-oil based debt that is in danger of default as revenues fall off a cliff.
The political class that must be re-elected to retain power is obligated to publicly express concern about the negative impact on employment, profits and domestic production. Whether the political class can do anything about the lay-offs and decline in oil/gas revenues is another thing.
But we should also keep our eye on the political system which retains power regardless of which party or politico is in office: the Deep State.The Deep State exists to maintain the essential infrastructure of global power and domestic stability. Its class of officials are paid to take the long view and consider the chessboard not from the point of view of winning re-election in two or four years but on what might unfold in the decades ahead that would challenge U.S. supremacy and the stability of the current world system and domestic economy.
From this point of view, a rapid decline in U.S. oil production and a corresponding increase in oil imports is a positive development for this basic reason: if cheap oil is becoming increasingly scarce, then it makes all the sense in the world to burn everyone else's cheap oil and keep our reserves in the ground for later use, when all the cheap oil is gone.
I have addressed autarky (national/regional self-sufficiency) a number of times: A Thought Experiment in American Autarky (January 17, 2014)
Globalization = Permanent Instability (October 29, 2014)
The point is that being able to produce one's own energy and food offers a kind of security that countries dependent on other nations for these essentials of survival can never enjoy.
Since cheap oil will eventually become scarce for all the reasons listed here and elsewhere many times--depletion of easy-to-pump reserves, geopolitical instability, rising domestic consumption in oil-exporting nations and a contraction in capital available to replace declining production--it makes excellent sense to consume all the oil anyone is willing to sell for $40-$50/barrel and retain one's own reserves for the time when $100/barrel has become "cheap."
If we follow this logic, then we conclude that the U.S. Deep State is in favor of Saudi Arabia's strategy of forcing production cuts (and the resulting collapse of income) on its rivals and marginal producers for two profound reasons:
1. The loss of income to rivals/enemies is a very cheap form of financial warfare that weakens their ability to maintain military forces, social welfare states and everything else currently being funded almost solely by oil export revenues2. The opportunity to consume everyone else's cheap oil while leaving more of the U.S. oil reserves safely in the ground for later use.
It's always wise to remember the elected government is the ant riding on the Deep State elephant, grandly declaring it guides the great beast. It's also worth remembering that the Deep State is not monolithic; rather, it is a dynamic network of power-nodes, each with its own agenda and each jockeying for dominance on key issues within the Deep State.
The Dollar and the Deep State (February 24, 2014)
Is the Deep State Fracturing into Disunity? (March 14, 2014)
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the tribe is going to drop the Saudis like a hot potato, once they are done with their oil
The Saudi Bozos would not even see it coming Bitchez
We are not there yet! His RH of SA will die, his entourage of fags is already making their plans for the day after. Do u really believe, that the CIA is not taking care of moving the coming "process" in the right direction? A bomb blast in the centre of Riyadh. Or better Al-Khobar or....? Time will tell.
Yeah but if the rest of the world drops the Dollar, then all is lost for the NWO.
China holds all the cards here, once they de-peg, the dollar will become worthless in as little as 6 months. They will have to learn to print the yuan and setup institutions to distribute the yuan to create the replacement consumer base first though. Add in periodic asset tax, and China can return to it's rightful place as the center of human civilization.
Print money to fund human activity, as we enter the post-Jobs society. Then cancel the money that pooled at the hands of the super-rich periodically to maintain constant circulating volume.
"China holds all the cards here, once they de-peg, the dollar will become worthless in as little as 6 months."
I would put $20 on the other side of that bet.
Your $20 dollar is worthless though, so you made a bet that you can not lose. And this is why Yankee traders are currently the best in the world, as there is no way to lose with control of dollar printing.
merica f yeah. ps i thought that was the strategy all along until xl popped up.
.
Naw, you're all wrong.
The Soviet Union was destroyed by crippling it's hard currency income via crashing oil and commodities prices, including gold . (Why would England sell such amounts at historic lows - and announce they were going to sell?)
Canada and other nations with easily bought/blackmailed leaders were also manipulated into dumping gold, oil, and commodities.
Couple this with a fiat-supported armaments increase (SDI, 600-ship navy, etc.) and the Soviets were hit coming and going.
Did they really collapse, or was that just a ruse to lull the West into false security - some have interesting theories on that...
So the current oil and gold suppression is a re-hash of what worked in the past.
Eventually, the U.S. Deep State will, with great sadness and much diplomatic wringing of hands, steal all foreign gold that is still foolishly within the US, issue a new gold backed dollar, with fancy gold ink and seals, and exchange them 1 new for 2 old dollars ...
Large foreign holders of US debt, such as China, Japan and SA will get cents on the dollar or zero for their holdings.
Let me know if you want to subscribe to RafterMan's newsletter :))
ok slow down on the Hollywood Action movies and please come back to earth.
I do not know start watching Tootsie, that should calm you !!!! lol
Rafter you do know the president can indeed confiscate all gold in the USA foreign and domestic under the emergency powers act or war power act i forget which one. Maybe that is why many are trying to ge their gold out of the USA vaults!
This oil price drop is precisely to protect the petro-dollar status first and foremost......buring other people's cheap oil is a secondary sideshow.
whilst the oil can be exchanged for tokens that may easily be printed or electronically created then it is better to burn up everone else's everything and keep our for later.
I have been saying this on here for at least 6 months, if not longer. Let those people pump and sell all their easy, shallow oil, use it up, then let those people consume each other. It doesn't matter, long term, if all these shale plays and deep offshore wells close up shop and go bankrupt. That oil will still be there, and once all the cheap/easy to extract oil has been taken, prices will inevitably rise, making these profitable again. Oil is the only reason to be so deeply involved in that region, aside from isreal. Once that oil is gone, those royal families will have a very short life span. Without oil, there is no reason for us to be giving them all that military hardware, and once the peasants arent getting their table scrapes anymore, those royals will have their heads on spikes.
It is predicted that when king fahad in Saudi Arabia dies, the 100+ prince`s will ALL fight for the throne which they all have a right to. I can just see the chaos once the 90 year old king dies.. Hopefully soon and good riddance
The Deep State's primary function is to appropriate everybody else's stuff, so it's not concerned with how much oil is under it's own feet. It believes it has a right to whatever it wants, wherever it can get it from.
Way too simplistic theory.
corrrect......and never forget the composition of the "deep state"........ state has nothing to do with it
"Appropriating everybody else's stuff" is the function of the Deep State, the Shallow State and all the States in between. The State is parasites all the way down.
Here are the entire rules of life, a key strategic objective, the long term playbook of the Deep State, and a great tactical tip. Takes about 7 seconds.
The Saudi’s oil wells are in decline for already a few years. Now they’re increasing the pressure and stepping up their rig count but the output isn’t at par.
My bet is that they’re pulling out as much as they can so their elite can get the hell out of Kansas when the shit hits the fan. They’re already relocating to the UK in droves and taking all their money with them, and when the crowd will figure it out, they’ll be left with sand and dust and wonder where it all went.
And when the money is gone, the fanatics will step in and claim hat little is left.
buy dubai real estate:)
"the tribe is going to drop the Saudis like a hot potato"
Really? Is that why the Saudi gutter-religion of Wahhabism is actively being spread by the DOD, CIA and Mossad, throughout Central Asia, the ME and Europe?
Nahhhhhh.......they wouldn't do that........would they?
Some of the easist oil we have is sitting off the coast of California. This has been obvious since the 1970s for anyone paying attention.
The entire "green" agenda is a useful tool until it's not. Then you can be sure it will be "drill, baby, drill."
that oil will be drilled for eventually, one way or another. Same with the ANWR. Might as well save them for a 'rainy day'. Once it becomes apparent that we need that oil for national survival, our politicians will stop pretending to give a shit about the whales or whatever else and open up those areas for drilling
i don't know but how much oil is there? enough to keep us going for how long? remember we're still importing millions of barels of oil
in the long run it will be marginal and the amount extracted will be negligible.
Oh im not saying it will even come cloe to satisfying domestic consumption. Im just saying that eventually oil is going to start getting scarce, and therefore expensive. And when that happens, all that pretending to care about the environment is out the window. All those places are getting drilled eventually
This here:
cheap oil is becoming increasingly scarce, then it makes all the sense in the world to burn everyone else's cheap oil and keep our reserves in the ground for later use, when all the cheap oil is gone.
hahhahhahahahahahaha
AS fucking IF the viruses and parasites that run this country think that far ahead!!
Thanks for the laugh!
True. IF they were that smart the SPR would be at 110% capacity.
This is why I don't believe in 9/11 inside job. They aren't that smart.
Smart?
They left so many traces of their stupidity one would have to be in massive denial not to look or want to look at the evidence left behind.
Smart was the BBC anchor predicting WTC 7's fall before it happened.
Yeah 'for the record' her name was Jane Standley.
Oh, it was only a few minutes. Her watch was fast. That explains all of it.
That's exactly why I keep my watch few minutes fast. You should try it.
The just have the mightier printing press right now, so they can move any futures market and thus the market itself whereever they want. That's not smart, just plain simple. Can they keep it all together? I doubt it.
I've thought about this a lot over the years, and here's what I think: I don't chalk that up to stupidity... IMO, most of the evidence left behind was no accident, they simply WEREN'T TRYING TO HIDE IT. It was a very blunt message to the rest of the world, and you can damn well bet every government and intelligence agency in the world figured that out within hours.
It's 95% full. I'd say that is pretty full. http://www.spr.doe.gov/dir/dir.html 727 million bbls and it's currently at 691 million bbls. I guess it was Puff the Magic Dragon that blew those towers down? Rhetorical question.
Mossad isn't that smart, and the Saudis are? That's a good one.
You must be right Peak Finance.
The demage of their financial system from dropping oil price is a much more urgent concern.
I wonder if WTI surpassing Brent is coming from their intervention. Just where will Mr Yellen store her freshly bought oil.
China: "Buy everyone's cheap oil first, store them in the ground"
Same with some other commodoties we hold near and dear.
Those are stored at the bottom of lakes.
Obama emptied the strategic oil reserves to lower the price a few years back when it was still to high.
But they’re not restocking it with this low oil... China is...
When there ever will be one big conflict... expect a sharp rise in price. A very sharp rise in price because America is cutting it link to cheap oil and the current crisis is destroying the current infrastructure. So something will soon happen to keep them going.
We already have a massive SPR, perhaps the biggest in the world. In a time of national emergency, .gov will simply nationalize all those shale oil fields, as well as the ANWR, and the coastal california oil fields. theres your SPR right there
Hard to pump during a war...
The real genius is we are trading digital Benibucks for real barrels of oil.
thats one of the things that has fascinated me through all this. We have conjured 4.5 trillion of the worlds reserve currency out of thin air, and people still take these counterfit dollars and give us real commodities for them
It all works in the meantime whilst they can buy real things of value with them, until one day someone just wakes the fuck up and says "Hey! This is just paper!?@#".....or 1's and 0's
and then they get bombed and regime change
The game must be played and the costs never counted.....
Blackmail is a major component of the System of Control. See anolen.com/tag/system-of-control & posts on Alister Crowley anolen.com/tag/libido-dominandi-sexual-liberation-and-politcal-control/ as a starting point. Find the book Libido Dominandi: Sexual Liberation and Political Control by E. Michael Jones
Sex, blackmail, susperstition (Crowley) & (induced) mental illness are the keys to Control System by TPTB.
An excellent recent TV series from Belgium called Salamander http://en.wikipedia.org/wiki/Salamander_(TV_series) is worth studying (torrents are available elsewhere). Although fictional, its not too hard to subsitute the bank safety deposit boxes in the series for tne NSA/Intel complex system of harvesting blackmail material from the internet/mobile phone. Bonus, its just a damn good story.
Monsanto is now the leader in corn in Ukraine and 7 other ways they are killing the 5 year plan
this article is nonsense!
An excellent critique with some valid points to back up your argument. Well done.
not that the deep state doesnt exist, but the proposed strategy is childish, as are your comments. Singing off!
What song are you singing? You automatically lose your ZH membership if it's something by Nickelback.
Thank you, and that might be a new form of torture:piping the music of that band into the cells of all the bankers and similiar ilk.
I don't know that band. You have me afraid to press any link of theirs at all, like I will get Rick Rolled or something.
He is however, correct.
cough, hack, spew, droool, hahahaah good stuff Dr.!
"The political class that must be re-elected to retain power" gets re-elected no matter what happens because in this corporatocracy, big money gets them re-elected not performance.
Sounds like banks strategy with over priced housing bubble and uhh unaffordable mortgage payments. Seed corn of the sheep ,just trying to hang on, is dwindling. It's the nice thing when you have unlimited money and time. Just Wait. Wait. Wait. Wait.
Does CHS ever talk about Peter Dale Scott who has written extensively and more comprehensively and, as far as I know, earlier than Charles on the "Deep State?"
Bingo.
Use up all the oil in the ME - and save our own resource for when all the oil in the ME is gone.
What are they going to do with no money, no oil, no food, and a population of idiots running around chopping each others heads off ?
Move to Amercakistan
Problem is that you'll have to blow some fat, rich, old, white oligarch to fill up your car with gas....
move to europe and go on welfare, of course.
I am the president of the Deep State. I demand that Chuck take down our secret plan immeditately. At least he didn't drop the bit about working with the remaining aliens who crashed at Roswell, and how we have enslaved them in an effort to build new propulsion systems that will get us out of this hell hole.
It is wise strategy. But, it must be coupled with VERY EXTENSIVE investment in operational hedges and reduced oil intensity of the economy in order to bear fruit... which would require shifting the mix toward natural gas, electric and FFV. The most rapid progress could be made through FFV with a retrofit... vastly higher domestic labor and energy content in what we consume and strategic control over the underlying resources....
But, no one likes to think in terms of national competitive strategy anymore...
The US plan is to let the arab tribes destroy each other once the oil is gone.
Saudi Arabia becomes just another desert once the oil is depleted.
Unless abiotic process is the way crude is created. Here are both perspectives...
Most scientists believe the evidence comes down decidedly on the side of oil forming from deceased organic matter. They point to very strong chemical evidence (so called “biomarkers”) that show hydrocarbons have an organic origin and not an inorganic origin. They also point out that various stages of hydrocarbon development have been uncovered, showing the progression from say peat all the way to anthracite coal or from algae to oil. They also argue that small quantities of hydrocarbon can be produced in laboratories, thus strong supporting their stance.
Proponents of the abiotic theory are not without their evidence, however. These scientists point to the fact that oil reservoirs have been shown to refill when left alone for periods of time, something that does not fit with the biotic theory. They also point to the presence of oil on meteors and other bodies that do not and never have supported life. They also suggest that claims about the chemical nature of oil are spurious because we do not know what processes occur deep in the Earth that may cause oil to look as though it came from an organic source when it did not. It is also true that oil can be produced from inorganic material, lending support to this theory.
Most "scientists" believe?
Political "science", maybe (ya know, almost all western science is politicized these days).
Yes, all those rotting dinosaurs and plants were buried in the ground, in mass graves, during the dinosaur and plant holocaust.
That's why the Russians proved decades ago that you can drill for oil anywhere if you drill deep enough, you'll find it.
But that's because the really giant dinosaurs dug their graveyards deeper.
What passes for "science" in most of the west these days is pure poppycock.
I agree with you Seek Truth. I am on the abiotic side. Just want to present both sides. "Most Scientist" is just like "Scientists" in the main stream that believe in AGW. I'm an engineer myself and don't buy dino petro just like I don't buy AGW... 90 MBPD of oil would be a hell of a lot of dino shit...
Good for you, I'm a degreed engineer also.
My rant was directed at what is falsely called "science" in the west.
AGW is another great example.
Lots of folks think they took the red pill, but they are color blind.
Bingo!
I didn't think that zerohedge would buy the 'peak oil' mythology. Anyways it was heavily discredited by the Russians when they discovered in the 1950's that their reservior's were refilling themselves and it was soon realized that oil was a chemical reaction in earth's mantle.
But don't believe me look at the research yourself and the fact that Russia has over 300 super deep abiotic wells producing oil from drill depths of an incredible 5 miles.
https://www.scribd.com/doc/3209608/abioticoil
From your Cited Report:
"..... the CIA know perfectly well, reserves of oil in the mantle of the earth are infinite......."
and thus
Professor Poleo makes it quite clear.....to survive in the long term...is to follow Russia's example by sharply reducing domestic consumption......"
Please, carbon is constantly being cycled between numerous oxidation states. Oil is nothing more than carbon in a reduced form. However you need energy to keep that cycle turning (provided by the sun) and reduce CO2 to sugar and then to fats (oil).
The unfortunate reality is the issue of flux. That oil in the gound has been built up over millions of years of solar reduction (plant, algae, and cyanobacterial activity). Remind us asshat, how much oil are we consuming per day now? How long have we been using oil?
You really think the biosphere is replacing all that oil every day? I wonder why we have to keep putting more energy into finding the stuff then? I mean, if what you suggest is true, this should not be the case.
Where you get that "degree" fucknut?
The answer lies in the rate of generation, not how it is generated.
This holds true for all substances, be it water, oxgen, or petrochemicals.
Next time think before you cast aspersions.
PS- I see you believe in the mass graveyard theory of petrochemical generation. Your lack of critical thinking abilities is now memorialed permanently on the internet. Let me guess, you believe in AGW as well?
Does your thesis apply to limestone also? what is limestone made out of it is not at least partly biotic?
And the reason you "know" this is?
"Russian researchers concluded that hydrocarbon mixes would be created within the mantle. Experiments under high temperatures and pressures produced many hydrocarbons—including n-alkanes through C10H22—from iron oxide, calcium carbonate, and water. Because such materials are in the mantle and in subducted crust, there is no requirement that all hydrocarbons be produced from primordial deposits."
en.wikipedia.org/wiki/Abiogenic_petroleum_origin
What about the carbon footprint?
Had this argument with a friend for years. Logic dictates that the best way to beat your adversaries is to fool them into expending their ordnance while limiting its impact on you.
Let the saudi's shoot there oil wad and then the new largest oil producer (aka uncle sugar) will step in and take it's place. In the long run china will be buying our oil, at a much higher premium of course.
I am reading "Asias Cauldron".
Apparently, there is oil equal to Saudis in the South China Sea.
1) those greedbags aren't that smart
2) those greedbags are greedbags
3) those greedbags don't care about the future of the usa because they are all a hundred years old, short sighted, mean, officious little turd ballz bitchez.
My, My, these "deep state", jews, MIC, bankster, WS types...
Such real geniuses enginerring this oil price drop ... eh?
How about, they drained the consumer of all ready cash.
They then credit financed said consumer right up to the max.
Then a chunk of said consumers get a 60% pay cut ( called retirement ).
And there is 30% unemployment among the 20-30 year group.
So who exactly is gonna buy in this environment???
The government you say??? You mean guys who essentially have
already maxed their credit card??? You mean guys who are killing off
assets, ( main st., industry, any part of the private economy still left )
to finance the ongoing party in DC???
The oil price drop is about LOWER DEMAND !!! Even the oil guys will tell
you this!!! And Dr. Copper has been saying the same thing for a while.
To understand where lower demand might have originated... re-read this post!
Another classic 2016 running campaign for Hillary.
Snakes in your backyard won't bite only neighbours: Hillary to Pak
PAK ISI protects Saudi Arabia. Nuke style. Looks like Hillary is again, out of the circle of trust.
Yeah, weren't we suppose to be out of oil 50 years ago?
Never actually considered that. Mainly because I do not believe anyone in currently in government is capable of strategic thought going out more than a couple of weeks (forget decades), regardless of their "State", deep or otherwise. However, it's an interesting concept, or byproduct.
As if our oil would ever stay here. It is always sold on the open market to the highest bidder.
THE trick is this: The Zionists in their war against Russia for Lebensraum and pipeline routes in Syria, also get to steal the shale, oil, and gas assets in the DC US. "A few birds with one stone" kind of thing.
All of the energy companies, below the "biggies," are leveraged up by way of the Zionist banksters' "printed" fiat. When they can't pay, the Zionist banksters will take possession to said assets. Call it the "counterfeit to assets cycle" and scheme.
The banksters need to repay us.
Follow the money. Trace the strings.
Whether by design or by default this is actually a very good strategy if the center can hold through all the ensuing economic chaos. The fact that we are using a strategic resource to run a soccer mom a couple of hundred miles to an outlet mall so she can save a few dollars on a Coach purse is the height of hubris.
I’ll bet you dollars to doughnuts that there is some young colonel that has gamed this and realizes that the last man standing will be the one who has fuel for his A-10s.
So.....we get to buy oil at a resonable price AND keep our own natural resource for the future?
Sounds like a win/win to me
Who are these 'our' of whom you speak?
The only things that belong to 'us' are the problems.
Zion gets the dough. We get the shaft (problems).
The banksters need to repay us.
Sound reasoning except that it is not the citizens of the United States Oil bitchez.
"if cheap oil is becoming increasingly scarce, then it makes all the sense in the world to burn everyone else's cheap oil and keep our reserves in the ground for later use, when all the cheap oil is gone".
What? If cheap oil is becoming scarce then it makes sense to try to control those areas where cheap oil is found and limit how much cheap oil is consumed. Those areas do not include Frackin-USA but do include places such as Iraq, Iran, and Saudi Arabia.
Take a look at what the US did in Iraq. 1) find an excuse to invade (WMD!) 2) destroy the infrastructure to limit domestic consumption (except for Oil Ministry) 3) forment civil war (remember when the UK Special Service chaps in local garb got busted with a trunk full of plastic...probably driving from a Sunni Mosque on their way to a Shiite mosque).
The ISIS fanatics running around murdering people works great for the US since it makes it much less likely that any sort of stable (i.e expanding and oil consuming) economy develops. Even if ISIS takes over the whole region the US can return to periodically bomb them back a few decades of development. So the oil mostly stays put and the US can come back to get it when they eventually need it.
The recent incidents of US weapons falling into ISIS hands also works to the US advantage. If ISIS ends up expanding from Syria and Iraq into Iran and perhaps Saudi Arabia, it just replicates the Iraq strategy except without the US having to send troops in.
I think the Saudis recognize this and maybe that is why they are refusing to cut production, as a way to hit back at the US via decimating the shale industry (as well as OPEC cheaters).
Nothing new. It's what RayGun did.
Please don't fall for the BIG oil ruse of the Century, Z/H. This is a planned long ago attack on all the oil reserves that Wall Street has been eyeing for the last 40 years, but more importantly, it is a direct attack on the economy of the Russian Federation, and America's best bud, Vlad "the MAD" Putin. The United States of America thinks all World oil reserves are tactically American owned via the US hegemony on reserve PETRO-dollar currency status. ERGO, it will take Americans years to grasp the fact that many countries in the World are most interested in de-Americanization of 'Petrodollar' hegemony. American governments have effectively demonstrated to all the leaders in the World that the hegemony of American policians and Wall Street Banksters is something to be eliminated entirely from the helmsmenship of the Global Village or commons of contemporary civilization. Evidenced in the actions and behaviours of American governments is a certain contempt for anyone other than a member of the White House, or Congress.
Please explain to everyone how our GOV got hundreds of independent oil producers to drop the price of their oil and voluntarily put themselves in the poor house?
Price drop is a demand drop just like all the other commodities that are following suit.
Saudi's could not have caused it on their own either as they represent about 15% of daily production.
Fail...
the big oil is in Canada and Venezula. its "heavy" so we can't get it out right now - but there's 30X as much "heavy" (unconventional) oil as there is conventional oil.
the plan is to use up all the conventional oil first - and to develop technology that will allow producers to harvest "heavy" oil economically.
judging by the market's recent action, id say TPTB need about 5 more years to come up with a technology that allows for the economic recovery of unconventional hydrocarbons in Canada and Venezuela.
the present chaos in Venezuela offers an opportunity for regime change.
the "Middle East" will be abandoned in 5 or so years - and Muslims can finally enjoy selling sand to each other and running around chopping each other's heads off in peace.
Going to take one hell of a lot more than regime change to fix Venezuela. like fixing USSA by voting R or D. Fail...
Just to be clear. "Heavy unconventional oil" is asphalt, or tarmac if you're British. That's what you're talking about when you talk about "heavy unconventional oil". Energetically you're better off digging up your roads, feeding them to the refiners and burning the oil produced.
That Pesky EROEI....Indeed........
Why not just release the bio weapons and wipe out the enemy ? then take their oil?
Obviously if your end-game goal is to starve all other nations to death , the net result is the same as just releasing the bio weapons on them....
The logical and humane thing to do is to gather all the nations (that matter) together to spearhead nuclear fusion research.... or to improve upon proven technological alternatives to the "energy problem" . . . thorium reactors etc.
If we had fusion / thorium pegged we could turn deserts into bio fuel and food for the entire planet, not to mention have enough energy left-over to build bases on the moon/mars/moons of various other planets.
The entire problem is solved by creating enough energy to create enough bio - oil to create rocket fuel for space-ships.
This is the entire point of being human, to explore and take over shit.
If you are not exploring and taking over shit (as a culture), you are not being human and you are increasing the likelihood of your species going extinct by delaying necessary steps of development for the species.
Human->Human Hunter gatherer->Human Farming->Human Inventing -> Human prospering -> Human getting bored and gambling -> Human coming to realization that Human must take over moon "for fun" -> Human makes great discovery on moon -> Human uses discovery to take over mars and teraform it -> Human discovers ancient alien pyramid on mars with a mothership parked inside -> Human uses mothership to go exploring -> Human discovers barren desert planet with giant worms that shit out spice -> Human finds spice highly profitable to sell to alien cultures that get high off it -> Human enslaves universe -> Human "wins"
The BIG PICTURE FOLKS!
We do not "Create" energy. Just transform it. And disperse (or spoil) it. It looks to me that a lot of people have no clue about the laws of nature, but still believe human is the master.
The only reason for the shale "revolution" is the US's ability to print money and distribute it to corporations like BofA & Halliburton almost for free in expense of the whole world. And what shale boom really gives to the Empire of Democracy is the leverage to punish major adversaries on the global stage for a short period of time. Allah Na zdorovie
OIL is leading the way into the deflationary vortex. It will find some temporary support in this area but long term it has a long way down to go.
http://www.globaldeflationnews.com/oil-light-sweet-crudeelliott-wave-upd...
BINGO
I have no idea when the Saudis will "run out" of oil, there are a whole lot of guesses out there. Most likely will be a lot longer than many think.
Some "experts" were saying that back in the 70's.
Either way it still going to painful for many in the oil bidness for sometime to come.
Yes, blah blah blah deep state etc.
Except. America clearly didn't do this and the "deep state" has an attention span of 15 minutes or less, not decades. America sucked the oil out of the ground just as fast as it could. Production peaking 40 years ago. Today, they are sucking "oil" out of kerogen shales just as fast as they can.
There is nothing that could be described as a "strategy".
what if you re-define "deep state" as a global territory, and "America" as just another temporary-label for a landmass. . .
there were stories years ago - my old links are now "dead", go figure - of massive oil deposits off Haiti, which also has a lovely "deep water port" available for moving the resources around. . . voila! earthquake, USmilitary arrives immediately, fifth largest embassy constructed, Haitians still confined to tented-slums. . .
but hey, those "resources" are still there to be tapped whenever needed.
could be a "strategy" - I mean, look at that other fabulous temple-embassy in Baghdad, gifted to the IS. . . these things don't always look so obvious unless
they do.
Because when it comes to saving things for future generations and planning ahead, there's nobody like our politicians.
/s
4 WORDS
GULL ISLAND OIL FIELD
... "DEEP STATE" ...
... well, let's see ... if we re-arrange the letters of "Deep State", we could even form complete sentences of each anagram of Deep State ... ... "Eat Ed's Pet"? "Ape Tested" "Teased Pet" "Tasted Pee" ...
... but who or what exactly is "Deep State"? ... this will give you a clue ... >>> http://www.lewrockwell.com/2014/10/no_author/jfk-was-murdered-by-the-deep-state/ ... the article begins with ... "9/11 and John Kennedy’s assassination have much in common: they were both American coups d’etats. And they both are having profound implications for our future." ...
... it continues with ... "While the journalists in the crowd undoubtedly thought JFK was talking here below about the Soviet Union, looking back on history since then, one has to believe that he was talking about his own country’s deep state: America’s CIA/FBI/NSA/DIA/Joint Chiefs of Staff/Mafia government. After all, he had fired the assassination and government overthrow maniac Allen Dulles, as head of the CIA in 1961, promising, I want to splinter the CIA into a thousand pieces and scatter it to the winds."
Charles - you have left out a key aspect of the rationale.
It is of no concern to the Deep State whether domestic oil is left in situ if it is not THEY who own it. THAT is the end game here, and THAT is why the "shallow" state would do something so seemingly self-destructive as to get the Saudis to do this.
Dick Cheney and his Halliburton butt-buddies most likely get a boner everytime they get news of another distressed driller. Once all the weak hands fold, you can bet the price will head on back up.
CHS, self-important dickhead stating the obvious.
Get a clue, CHS, your share of deep state oil was used up in the time it took to write this tripe.
Wise up. Plant a garden. STFU.
In the long run, all oil will be drilled that can be gotten to with a positive return on energy invested. One day we may use 4 barrels of oil to extract 5, but it will be net positive and thus will be drilled.
I agree that the US government is an inside player in this radical price drop. It is right, fracking oil is going nowhere, when it is cost effective to produce it, it will be boom on again. The market decides. As for the Saudis, I keep hearing that they are the smartest people in the room when it comes to oil" somehow I doubt that! Right now, low cost producers are putting rigs to work to increase production and flood the oil markets. Washington and Saudi hope to kill Venezuela, Iran and Russia. While the Washington crowd knows cheap gas will win more votes at election time than "oil jobs" will. It is simple vote counting, 300 million verus 10 million. No contest. Were I a Neocon ruler in Washington, I would be aboard on this tactic, it is clever play.
Just one thing about your first sentence: only if the value of energy provided by that one barrel exceeds the energy provided by alternative sources for the same marginal cost.
For those whose philosophy is that ranchers and any other landowner should own everything under their land all the way to the center of the earth, the U.S. has done the right thing since the value of crude oil and natural gas was recognized, beginning in the 19th century. But the consequences have been the whole long history of scrapping streetcars, suppressing electric cars, promoting gas guzzlers, and depleting America's cheap oil as quickly as possible. In the 1980s, M. King Hubbert observed that America's policy seemed to be to deplete the resources on our own territory first. By that time much of the depletion had taken place already. To begin to turn these ideas over in our minds in 2015 is to strategize on how to run the marathon when the finish line is already in sight.
Believers in markets, private property, and so on should be pleased with America's energy history, in which incredible resources were substantially wasted. Many of those believers (not all) are nationalist boosters of the American empire. The most effective imperial strategy, however, would have been to do what this article talks about from the outset, namely to change the law no later than 1900 and make oil and gas "strategic" resources whose disposition would be under the control of the federal government, presumably through tightly-controlled contracting to private operators. The ideal imperial strategy would have been to keep domestic production to a minimum and to put the emphasis on plundering the oil and gas of foreign countries. Certainly the oil, which can be shipped around in tankers. Gas policy would have been somewhat more complex. But the strategy, in short, should have been consume theirs, save ours. That's not what we did, and to start thinking along those lines now has a postmortem feel to it.
I don't see any way out of this .... so we MUST HAVE A WAR !
and it must be profitable for BANKERS
yes ... WAR it is
do we have enough Idiots, willing to die for OIL .... ofcourse they are plentiful !
Which'll be worse?
A real war.
Or the make-believe wars between Oceania and Eastasia and Eurasia? (US. China. Russia.)
You know, where the leaders of those three powers divide the world into three parts.
And then they terrorize their populations with the fear of the other two.
Or maybe you prefer nuclear war?
It's a tough choice. I can't make up my mind.
Hope the Saudi Royal family doesn't make this announcement to the "extended family" of 8 million that lives inside it's "borders"... But hey they learned well that technique of wandering they've been taught by their masters whohave made many places there homes over the centuries only to leave them in ruin once the interest payments of their clients stop!
We know how the Saudi people that aren't connected to the "royals" must feel as the government(s) of the U.S. and U.K. offshore the best jobs once the manufacturing techniques for those resources are perfected from transistors, tape recorders in the 60's , VCRs stereos, in the 70 and 80's and computer chips and computer electronics in the 90's and this decade and well... just about everything else!
Sure hope the both us have a plan for thones living large at our expense when the time comes!
whadda ya think?
We've been doing that for 60 years.
But those those pesky Texans always wanted to make real money.
Brats.
if we can get real oil in exchange for worhless paper money printed by the Fed, why not?
Reminds me of my two dogs. The little one gets all the table scraps first, then patiently waits for the big dog to finish and eats what he has left. Then the little bitch guards her food all night till she's hungry around midnight or so.
I've been saying this for over 20 years. Makes perfect sense, even without the deep, dark conspiracy theories thrown on top of it. Use theirs first, then use ours. Hell, may be the only thing that helps us pay off some of this crippling debt - $300/barrel oil, and all of it ours to sell off worldwide.
This article is some thick pandering bullshiit. Politicians are for-sale short-term. Their votes today are determined by the checks they cashed yesterday, not two years ago.
This "deep state" baloney is clickbaiting people who think it's a good idea to stockpile food and arms in the most advanced surveillance police state (USSA) instead of leaving for Switzerland or Austria. They don't need a "deep state" or "ruling class" because it's just a big club and they're all on the same page.
You can call the "deep state" anyone who has the resources to allow that trickle of dollars to pad the politicians' campaigns. It's just the very rich (30mil+ ) vs the working class.
THE DEEP STATE STRATEGY:
IMPLIMENT OBAMACARE.
START A RACE WAR.
TELL THE COUNTRY .GOV IS COMPLETELY TRANSPARENT AND THEN SPY ON EVERY LAST AMERICAN.
LET MILLIONS OF ILLEGAL ALIEN FELONS BUM RUSH THROUGH THE WIDE OPEN UNPROTECTED BORDER AND THEN GIVE THEM $100 BILLION A YEAR IN WELFARE AND FREE EDUCATION.... OH.... AND GIVE THEM DRIVERS LICENSES TOO
LET THE UNITED NATIONS HAND PICK 70,000 MUSLIM SYRIANS, CALL THEM REFUGEES AND DROP THEM ALL OVER AMERICA.... SO WE CAN BE AS STUPID AS THE FRENCH.
.................... the list goes on. please feel free to add to the list