This page has been archived and commenting is disabled.
Russia And Iran Moving To Corner The Mideast Oil Supply
Submitted by Steve Chambers via AmericanThinker.com,
It looks like Vladimir Putin and the ayatollahs are preparing to corner the world’s oil supply – literally.
Last May I wrote on this site that Iran was in the process of surrounding the Saudi/Wahhabi oil reserves, along with those of the other Sunni Gulf petro-states. I added that, “Iran’s strategy to strangle Saudi/Wahhabi oil production also dovetails with Putin’s interests. As the ruler of the second largest exporter of oil, he would be delighted to see the Kingdom’s production eliminated or severely curtailed and global prices soar to unseen levels. No wonder he is so overtly supporting Iran.”
We’ve now seen Putin take a major, menacing step in support of the Iranians by introducing combat forces into Syria. Many analysts argue that he’s doing this both to protect his own naval base at Tartus and as some sort of favor to the Iranians. Are those really sufficient inducement for him to spend scarce resources and risk Russian lives, or does he have bigger ambitions in mind? Given the parlous state of Russia’s economy, thanks in very large part to the recent halving of oil prices, he must relish the opportunity now presented to him, in an axis with Iran, to drive those prices back to prior levels.
The Iranians, for their part, must welcome this opportunity as well, for two huge reasons: first, when sanctions are finally lifted, thanks to their friend in the White House, Iran’s oil production will only aggravate the current global excess oil supply, reducing their cash flow (although they will still repatriate the $150 billion released by the nuclear deal). They and the Russians must both be desperate to find a way to prevent further oil price declines. And second, Iran’s mortal sectarian enemies and rivals for leadership of all of Islam are the Saudi/Wahhabi clan, so the prospect of simultaneously hurting them while strengthening themselves must seem tremendously tantalizing.
To achieve this, the Russian-Iranian axis can pursue the encirclement strategy of the Arabian Peninsula that Iran has already been overtly conducting, as I described in May, and is evident by referring to the map below.

Iran and its allies already control the border across the Saudi/Wahhabi Kingdom’s northern frontier, although the Iranian grip on the Syrian portion is tenuous – hence the Russian intervention. Now Iran is also fighting a bitter proxy war with the Kingdom in Yemen, where Iran is backing coreligionist Shi’ites. From Yemen, Iran can also threaten the Bab-al-Mandeb that provides access to the Red Sea, multiplying the pressure it already exerts on the Kingdom by threatening the Strait of Hormuz at the entrance to the Persian Gulf from its own territory.
Moreover, Iran is widely believed to be supporting the Shi’a who live on top of the Saudi/Wahhabi oil reserves in the Eastern Province. The natural affinity between the Shi’a of Arabia and Iran has long worried the royal family and led them to discriminate against their Shi’ite subjects, fostering resentment among them. Attacks on the Shi’a community early this year have increased tensions. On top of all that, Iran is reportedly behind the recent Shi’a unrest in Bahrain, which Iran considers it lost “14th province” – much as Saddam viewed Kuwait in the late 1980s.
With this being the current state of the Mideast chessboard, consider how the game can unfold. With Russian assistance, Iran can save its Syrian puppet and reinforce its defensive enclave in the Allawite homeland in the northwest of its putative boundaries. Then the combined forces of the axis can turn on ISIS, all the while boasting of doing the world a favor, and reduce its territorial control if not extirpate it entirely. Of course, the Saudi/Wahhabis will probably do whatever they can to assist their vicious ideological offspring, but it would be hard to bet against the axis.
As the axis pacifies Syria, it can then begin pressure the Saudi/Wahhabis and other Sunni petro-states to curtail their oil production enough both to accommodate the increased Iranian flow and to lift prices back to acceptable levels. $100 a barrel must sound like a nice target.
The axis’s initial pressure will probably be diplomatic, applied by both principal powers. However, with Iran’s foothold-by-proxy in Yemen and their influence in the Eastern Province and Bahrain, it could easily foment more general violence against the Saudi/Wahhabis, even within the Kingdom itself. Iran could likewise twist Bahrain’s arm and thereby rattle the cages of the lesser Sunni petro-states. Then, by trading a reduction in oil for a reduction in violence, the axis could achieve its objective.
If not, the Iranians could escalate the violence further. Perhaps ideally from the Iranian perspective, the Saudi/Wahhabis would overreact and provide Iran with an excuse to strike directly at the geographically highly concentrated Arabian oil fields and support facilities. Iran might not be willing to risk royal retaliation by attacking on its own, but it could be emboldened with Russian backing by air and sea, and perhaps even a nuclear umbrella. In that scenario, the proud Arabs would be forced to bow to the will of their ancient Persian foes – particularly since it is obvious that the US under its current president could not be relied upon for support.
An attack on the Kingdom’s fields would cause a severe and lengthy disruption of Mideast oil supply, which would dreadful for the rest of the world – but certainly not the worst-case scenario. Such a disruption would precipitate another nasty global recession and could severely weaken the US, Europe, and China, all of whose economies are fragile and probably brittle. Thus the damage inflicted could far outlast the disruption itself. This could be yet another highly attractive incentive for Putin and his ayatollah allies.
So, Putin and the ayatollahs have powerful motives to corner the world’s oil market and therefore the US and the rest of the world are facing an enormous risk. The horrible pity of this is that the US could easily demonstrate the futility of the Russian-Iranian axis trying to take the world hostage with Mideast oil, simply by opening up our surface deposits of oil shales in the Rockies. As I showed in this analysis last March, these resources could make Mideast oil irrelevant.
The US’ surface oil shales are completely different from the deep shales that are accessed through directional drilling and fracking and that grab all the headlines; the deep shales are a mere side show in terms of reserves. The surface shales hold up to 3 trillion barrels of oil versus about 50 billion barrels of tight oil accessed by fracking. The total global proven reserves of oil are 1.6 trillion barrels, and the Canadian tar sands have 1.6 to 2.5 trillion barrels (although they're officially listed at 175 billion barrels, which are incorporated in the global total). So, the US and Canada together essentially can triple the global supply of oil, and at prices in the $60-75/barrel range. Meanwhile, Mideast reserves are about 800 billion barrels – half of Canada’s oil sands, perhaps less than a third of the US surface shales. The world no longer needs the Muslim oil.
Unfortunately, the vast majority of the Rockies surface shales sit on Federal land, and while George W. Bush opened up those lands for development, Obama rescinded that policy. These reserves now sit almost entirely idle.
As with any petroleum deposit, these surface shale reserves can’t be turned on with the wave of a wand. But they can be opened for development with just a pen, and not even a phone. For the protection of this country, and the good of the world, our current president should immediately open these reserves for development, with great fanfare. If he will not use our military to protect our interests, he should at least use our economic weapons.
There is no time to lose. Russia is on the march, in unison with the emboldened and enriched Iranians, thanks again to our president. Putin and the ayatollahs know they will enjoy only another 464 days with this president and that none of his likely replacements will be so complacent and flexible, to use his own term. We should therefore expect that they will want to make as much hay as they can while the sun reflects off of Obama’s insouciant grin.
- 59874 reads
- Printer-friendly version
- Send to friend
- advertisements -


What is this crap?
Exactly this. Is that why Russia gave US free reign for over a year to do as they please with Syria with which Russia has military cooperation agreements?
China???
Steve Chambers
Just like that? One day they decided to "corner the oil market"?
It couldn't possibly be a long overdue reaction to decades of abuse by the west, right?
fuck you, you piece of shit!
Steve Chambers is not so much an American thinker.
The shale oil in the American West would be very expensive and dirty to mine. $80 / bl? No, probably more like $150.
Meanwhile, if the USA just stays out of the Middle East, at some point proud Iran and proud Russia will tire of each other. Should the Iran-Russia Axis disrupt oil flow (by war for example, something a lot of ZH-ers want to see), China will likely not like that, and tire of Russian and Iranian antics.
All we have to do is stay out and work on our energy supplies. We can do it. It may be expensive, but it can be done.
By the next president..........
China will likely not like that, and tire of Russian and Iranian antics.
LoL, the fuck they will.
i'm thinking along the lines of steve chambers as a person of divided loyalties (or really loyal to another country, hint: brave, little ...).
as for u.s. energy independence, i can see solar and wind because it's shining and blowing every day and if you miss that day it's gone. as for the stuff in the ground, it's dirty to get out and probably too valuable to waste running cars and making electricity. leave it for the children's children and hope they know better than we.
What's this? A Ramirez cartoon without pictures?
Well done.
where were those free energy notes tesla left behind? fire up wardenclyffe.
Yep, thank Obozo and his bungling foreign policy.
This is a bullshit article, everybody knows only America enters into wars for oil, duh!
The Sunnis are about to have their ass handed to them...
This whole article seems plausible but far fetched. In the March "analysis" you linked to, you referred to John Kerry as "Vice President Kerry".. Soooo, there's that for credibility.
Let them have the worthless oil. We can make a good living manufacturing and selling these:
http://www.keshefoundation.org/image/Alekz-System-07-02-15-r4.pdf
Its a wonder that MT Keshe hasn't been suicided yet.
Electronic Perpetual Motion .... harder to debunk .... perfect format for energy scams ?
This is total horseshit, from a technical perspective. American "surface shales" are not energy sources. It requires more energy to get oil from kerogen than it delivers and more water for the power plants required than is present out here. Absolute rubbish.
"All we have to do is stay out and work on our energy supplies. We can do it. It may be expensive, but it can be done."
Huh?
"work on our energy supplies" = CONSUME OUR ENERGY SUPPLIES. How the fuck does that make you more energy secure when you're gobbling up the future?
"We can do it." Who the fuck is "We, comrade?" And, by "expensive," could that mean doing a negative EROEI? New flash- we're fucking BROKE!
I logged in because the author made me vomit in my mouth (speaking shit about how we should interfere in the affairs of sovereign nations). I saw what keeps me still hanging around this joint, several intelligent people basically mentioning that this, and then your post... <smack forehead>
This is the kind of crap I expected from the Atlantic Monthly.
Oil demand probably keeps falling because no one has a job. The price increases and decreases are engineered more by Goldman Sachs.
Maybe VW will decide to start selling those diesels that get even better gas mileage. The word was they got hit so they would not release them. 261 mpg
http://www.motorauthority.com/news/1082472_2014-volkswagen-xl1-the-261-m...
Prototype but a road going version could be done they get 150 mpg.
Freddie, we can surely hope that VW can put out a vehicle that gets that kind of mileage.
Your link is from 2013 though. If they had a protoype in 2013, I would think that they would have shown the world such an economical car by now.
* * *
Agree re lousy oil demand due to lousy economy.
"Oil demand probably keeps falling because no one has a job."
Yup! There is, however, some price undercutting as producers are trying to capture more market share: and, it's effectively knocking out the shit that should never have gotten out in the market to begin with.
Argued pricing MANY years ago. I said that the "price" didn't matter, that it was an issue of "affordability." As you note, fuel can be dirt cheap, but when you’re broke it matters little.
Poor VW, I hate them as a company, but I do like some of their stuff. I remember telling people a long time ago that they should wait to get a diesel hybrid. Problem with all of this is, is that people don't have reasons to drive any significant distances, being unemployed and all (and then there's the fact that the majority of humans on the planet could never even afford to fuel one of these even with such stellar fuel mileage, let alone own or lease one).
"Maybe VW will decide to start selling those diesels that get even better gas mileage."
Hope that they sell ones that get better diesel [fuel] mileage (<wink>)! They've been selling [diesel] cars that get 70-80mpg for many years.
Go suck a fat dog's dick asswipe.
Written from the world should kiss our ass perspective Should rename the site AmericanDumbo.com
"...It looks like Vladimir Putin and the ayatollahs are preparing to corner the world’s oil supply – literally..."
So, they might make a few bucks off of oil like Saudi Arabia has made for what - four decades now? What the fuck is this paranoia about Russia or Iran having any commercial oil interests anywhere? What about the world-wide threat of U.S. oil interests? Nobody's stopped us evil fuckers from raping the planet. Afraid of a little Russian competition?
"...Last May I wrote on this site that Iran was in the process of surrounding the Saudi/Wahhabi oil reserves, along with those of the other Sunni Gulf petro-states..."
Err... last May the Saudi/Wahhabi Caliphate(s) were in the process of surrounding the Saudi/Wahhabi oil reserves. Iran wasn't doing much of anything.
"...I added that, “Iran’s strategy to strangle Saudi/Wahhabi oil production also dovetails with Putin’s interests. As the ruler of the second largest exporter of oil, he would be delighted to see the Kingdom’s production eliminated or severely curtailed and global prices soar to unseen levels..."
Any oil exporting country would love to see a huge competitor eliminated and prices go up, but most are not that fucking evil to actually do it. That is, with the exception of ZATO invading Iraq and Libya, sanctioning Iran and later Russia to restrict their sales and artificially boost the global price.
"...No wonder he is so overtly supporting Iran..."
Wait - Iran will be a huge producer. Using your logic, shouldn't Putin be planning his 'encirclement' of Iran somehow?
"...Iran and its allies already control the border across the Saudi/Wahhabi Kingdom’s northern frontier..."
How's that? The Saudi/Wahhabi Kingdom (via al Nusra and ISIS) are all the way up into southern Turkey, in case you haven't noticed. Has Iran taken the Black Sea or something?
"...Iran can save its Syrian puppet..."
Jesus... really? You know, it's almost every day that I see something Syria does and think to myself, "Oh... they're just doing that because Iran told them to do it."
"...We’ve now seen Putin take a major, menacing step in support of the Iranians by introducing combat forces into Syria..."
Oh hell... he's supporting his Syrian ally, not supporting Iran. And if you want to talk menacing, how about the Gulf War where the U.S. actually invaded a major oil producer and all but shut down their production and sales? How about invading Libya and taking their oil off the market? Oil producers have to worry far more about U.S. gunboat diplomacy than they ever will about Russia or Iran.
"...Many analysts argue that he’s doing this both to protect his own naval base at Tartus and as some sort of favor to the Iranians..."
Uh... shouldn't those analyst at least give a nod to 'Russia supporting it's ally, Syria'?
"...Are those really sufficient inducement for him to spend scarce resources and risk Russian lives, or does he have bigger ambitions in mind? Given the parlous state of Russia’s economy, thanks in very large part to the recent halving of oil prices, he must relish the opportunity now presented to him, in an axis with Iran, to drive those prices back to prior levels..."
WTF?? AXIS with Iran? Why are U.S. allies part of our global 'friends' and Russian allies part of an AXIS? Why not just say what you wanted to say: axis OF EVIL. And although Russia would love $100 bbl oil again, they would have to invade a country and overthrow its lawful government somewhere every year for the next two decades to even come close to the U.S. track record. Saudi Arabia will be out of oil by then - it will be too late to invade them to raise oil prices.
"...The Iranians, for their part, must welcome this opportunity as well, for two huge reasons: first, when sanctions are finally lifted, thanks to their friend in the White House, Iran’s oil production will only aggravate the current global excess oil supply, reducing their cash flow (although they will still repatriate the $150 billion released by the nuclear deal)..."
Sooo... the Iranians will welcome this opportunity... because it will reduce their cash flow? I think I just had some kind of brain seizure. Do you work for the Bureau of Labor Statistics on your days off?
"...They and the Russians must both be desperate to find a way to prevent further oil price declines..."
No, they're actually doing pretty good managing their budgets despite the low prices. Unlike a couple of other oil-producting countries I can think of...
"...And second, Iran’s mortal sectarian enemies and rivals for leadership of all of Islam are the Saudi/Wahhabi clan, so the prospect of simultaneously hurting them while strengthening themselves must seem tremendously tantalizing..."
OK, religious extremism lesson Steve: Iranian Shia could care less if anyone, anywhere converts to Twelver Shia. They're NOT FUCKING TAKFIRI EXTREMISTS. In fact, Iran is pretty religiously diverse as a country. The only reason they formed a Shia-run state was due to a revolt to throw the corrupt U.S. puppet dictator out that was pissing them off. Remember? Wahhabi extremists ambitions extend well beyond the Kingdom of Saudi Arabia AS A RULE. Comparing the two as 'rivals' is idiotic.
"...Moreover, Iran is widely believed to be supporting the Shi’a who live on top of the Saudi/Wahhabi oil reserves in the Eastern Province..."
Supporting them exactly how? Toyota HiLuxs? TOW-2As? The Shia are mostly dirt poor in Saudi Arabia. This sounds like the claim that Iran is 'supporting' the Yemeni. If Iran is supporting the Yemeni and the Saudi Shia, then their support SUCKS.
"...consider how the game can unfold..."
The Iranians will sell oil. So will Russia, so wil Saudi Arabia. I'll pass on your goof-ball Russian/Iranian global domination schemes. The U.S. provides plenty of that drama for everyone.
"...There is no time to lose. Russia is on the march, in unison with the emboldened and enriched Iranians, thanks again to our president..."
If Obama wouldn't have overseen the creation of al Nusra and ISIS, then Russia wouldn't have to march anywhere. You're right: no time to lose cleaning up the U.S. disaster. Go Russia!
"...Putin and the ayatollahs know they will enjoy only another 464 days with this president and that none of his likely replacements will be so complacent and flexible, to use his own term..."
Do you mean Obama's replacement might try to hurt Russia and Iran economically and encircle them militarily? <yawn...> Already tried that and failed. Got a plan B?
Good job, Paveway IV. You nuked 'em.
That was awesome, Paveway!
Kudos!
One would think the whole muslim vs atheist thing would get in the way.
Ha, that's a great post...You just ripped the arse out of that article, chewed it up and spat it back in the author's face...I imagine if he read your post, Paveway, he's now nestled deep into his Mother's chest weeping like a baby.
And the decision, in a landslide, goes to... Paveway IV!
Only thing missing is a reference to the CIA's overthrow of Mosaddegh.
I was just gonna accuse the Author of working for Exxon-Mobil, but yer analysis is spot on!
Excellent post Paveway.
One small bugbear - call me a Grammar Kiev... sorry, Nazi... if you will, but:
"Iranian Shia could care less if anyone, anywhere converts to..."
Couldn't care less. The phrase is "couldn't care less".
If someone "could care less", then it means they actually do care. If they don't care, then they could not (couldn't) care less.
Here ends todays English lesson.
You're right. My mind goes conveniently blank when re-reading my own posts. And I was huffing paint thinner at the time, too - that never helps.
Excellent reply. Steve Chambers will be whimpering like a lost puppy when he reads this.
I doubt it. He's a decent writer and seems to take criticism well. Like all the other Israeli-firster Muzzy-haters, Steve just can't form a logical argument around the 'threat' of Iran and/or Russia to the world becaue that threat only exists in the minds of the Likud and U.S. neocons. I expect as much from American Thinker - here's part of their 'About' piece:
A lot of the articles' themes on the very right wing American Thinker are pretty popular here on ZH.
Foreign policy is not a playable game, we don't need to worry about every very solid analysis in plans, they never work.
https://thinkpatriot.wordpress.com/2015/10/02/warning-ideas-are-dangerous/
https://thinkpatriot.wordpress.com/2015/02/06/high-dimensioned-games/
https://thinkpatriot.wordpress.com/2015/10/11/lebowski-enlightenment-6/
Really, 'win' is a long-term thing. Negative sum games are very nearly always losing affairs. Russia already did that once in living memory, Iran already did that once in living memory.
Don't be so naive. Certainly Russia and Iran (don't forget me too - China) are acting on their own behalf. If they are like most people (yes Russians, Iranians, Chinks, towelheads, Spics, WASPs, WOPs, wiggers, jiggers, figgers and Zionists are all people, but, then I'm racist, of course) then they certainly have a capacity to want to see not only their own success but their rivals failure and the forthcoming potential for domination. Stop denying human nature. That's what got us into this predicament in the first place. Ain't nobody gonna save you. You are the one you've been waiting for.
Obi-Wan Kabuki, is that you?
Yes, he has no idea. One day the US taxpayer will realise the Pentagon, military contractors, and the CIA are all working for Banks who lend money to the government to pay for all of it. The great US taxpayer is very long suffering while schools and local infrastructure turn to crap. It is no coincidence the QE to date is about the same as the costs of the Afghani/Iraq wars. Rather than tax hikes they were hoping to pinch the money through inflation....
"What is this crap?"
Precisely what I was going to say, only with the word bunkum instead of crap.
Then again, crap defines it alright.
WTF????
The author, Chambers, is a British neocon 'Historian', with links to the British Royalty via the 'Gallipoli Association' in London.
Time to watch "Lawrence of Arabia" again?
U.S. doing it's best Britain circa 1946 impression.
definitely better than 99% of the rubbish they make today
"For I...am a RIVER to my people!!!"
lawrence was ww 1:
https://en.wikipedia.org/wiki/T._E._Lawrence
i only hope it's already 1946 on the american empire measured on the british empire time scale.
we are done. just let the colonies go. where's gandhi? when do we get real national health?
What a load of garbage. Back in reality, Barry has been quite mum on the US decision to lift the oil export ban. Where is this veto that MSM said would come about?
Another war propaganda piece by a slavering NeoLibConZioShill. They do love their 30 pieces of silver.
i'm not sure this guy isn't a true believer. can't really find out too much about him on the googler.
Belief in padding his pockets.
Well it looks like a distorted view...
I think it is the USA and the Saudis that would love to see Oil going back to 100$... isn't it?
One of the reason why we kept the Middle East in a mess for the last 15 years was expressely selling weapons and keep the military complex happy, keep the oil barons smiling (friends of the Bush family), allowing shale gas developments that would have not been possible otherwise with cheap prices... and of course keep the Saudis smiling just as much.
;-)
And shit head Obummer opposes energy self-sufficiency for the US.
I think he really is trying the sink this country.
Why would Obama be any different than any of the rest of the Presidents? Every one has been the worst President ever because the system is ever-more broken.
Obama will get rich, all ex-Presidents do.
+1 Demdere. Everyone is blaming Obama but all previous presidents had to bow down to the money masters that control every inch of this nation. In return to their service, they're rewarded with the blood money.
Self-sufficiency with growth (perpetual growth on a finite planet) isn't possible.
Keep believing that it's some plot to undermine things and you miss this bigger picture (through denial that growth WILL, if it has not already, end). Obama et al are cogs in the wheel of a faulty wheel, a wheel that will fail due to its inherent design flaw (that we aren't allowed to talk about).
As if the President has last say about such things! "Man behind the curtain" anyone?
emperor w/o clothes.
Can't the Fed just print more money and do a lot more helicopter drops?
Sorry, the helicopters are being used right now to drop ammo to shore up the "strategic" plan of creating chaos in the ME.
Fanciful speculation.
Definitely a ziocon.
Cornering Oil, Gold & a trade / Payment system outside the Swift system along with China & the AIIB.
Death to the Petro Dollar. And, death the Criminal Fraud UNITED STATES, CORP. INC.
We had our chance to ally with them but blew it. We lost the proxy war because our policy preference to control the Middle East is chaos rather than order.
It's not "We" that is to benefit but everything this nation does in $$$ and human tragedies is for 'Greater Israel'
Our spineless politicians will never put America first.
Such rubbish. There is zero risk of Iran taking over all Sunni oil.
Quite the imagination though!
I'm calling your Bull shit on this one Tyler, shame on you and pumping your long oil position. I rather think Putin is intervening in Syria b/c dear beloved nobel winner has made a total mess of things; turning a secular peaceful Syria into a hellhole on earth with millions of refugees fleeing everywhere and wahabist head choppers flooding into (and out of) the area like a crazy plague of locusts...
"I rather think Putin is intervening in Syria b/c dear beloved nobel winner has made a total mess of things"
Well, it certainly has created the opportunity for Putin. It's almost too convenient when you think about it. I've wondered about all of this...
At some point the torch will be passed. Whether via strong-arming or agreement, it WILL get passed. The tricky part is in creating a storyline that the locals will swallow (so that they don't rise up and challenge TPTB).
Was it the "plan" to get Russia to step up to the plate on supplying security services to the global commerce engine? There was something a while back written by some US military folks stating that they thought that China should step up and do their part, but that they weren't sure that China was up to that task yet.
Is this a Tom Sawyer "painting is fun" trick?
In the end, business is business.
What a bunch of nonsense.
or....not....
What if Putin secures his ally and goes home? What if (has he has previously stated), does not want to 'restore the Soviet empire', and just want peace?
These are the things he has actually stated. To get him to be the bad guy we must both assume he is a bad guy and not believe what he has affirmatively stated otherwise.
The US does not look good as an important actor on the world stage as this time.
A bit fanciful of a picture but Putin and Iran would benefit greatly from higher oil prices, I wouldn't doubt that this could to be one of their strategic aims. Sometimes you just have to see through the steaming pile to see the nuts.
What neocon/neoliberal tripe. They always plan ahead in the US to start the next war.
American Thinker, NOT!
Does the author work for FOX news?
This is complete garbage
It will be many a moon before oil is high enough those 3 trillion barrels of Rocky Mt. shale rock get feasibe enough to produce. But at least he got the 3 trillion barrel estimate right. The problem is you need lots of natural gas to produce steam to pump down wells to heat the shale so oil will come oozing out. Not cheap
Now back to reality instead of fantasy land. Russia is the low cost producer on the planet and can produce at close to 4.50 bbl and Rosneft even have a few wells as cheap a 2.80 to operate. This is why the US/ or SAUD war on the oil price is retarded and doomed to failure. They are not ever going to cause Rosneft to lose money. Hurt the bottom line a bit? sure, but Russia will always make money on its oil. Watch Putin laugh and buy another 30 ton of gold next month. It hurts a little but it is'nt really going to faze him. He will out last the Highroller Sheiks fighting their million man Hothi army. He can fly his Jets home tommorrow if needed.
Saudi Arabia is the second low cost producer they can produce at 5 bucks a barrel in bigger volumes than Anyone at a steady pace but I don't believe they can increase much from here.
Then you have an economic slowdown and Russia suddenly building bases in the Artic as fast as they can to defend who knows. but I bet it isnt small. It just a tough operating environment that is going to take some technical skills to have to be developed to get it.
Then you have Iran, the 4 largest oil reserve (conventional) itching to come on line just as soon as santions are lifted. They say they can get to 1million BBl a day in the first year.
The world is AWASH in the stuff at these demand levels.All these things spell GLUT< GLUT and more GLUT as far as the eye can see unless that stupid Syrian war spills over in to the Kingdom and takes that major production chunk off line. Or the stagnant world economy suddenly finds a rocket ship.
The US fracking that shuts down at about 60 dollars, Canadian sands which I believe at about 80/85 dollar and your silly undeveloped Rockies dirt pile is only a dream until much higher prices arrive. Sure they will, but its at some point in the future from here.
As far as the Russians wanting those 40 year old half depleted water logged Gahwar Saudi wells? Why? You think they would want to defend that so far away smack in the center of Muslim Nutjob land? The Russians are thinking Polar bears jack and how far they can bully that flag out on the artic circle.
Put down your Rockies shale crack Pipe and join reality.
Last information Cushing is full and still build more storage
Nuke Israel and get this party started
Change,
everything you are
and everything you were
your number has been called
fights, battles have begun
revenge will surely come
your hard times are ahead
and so on...
https://vimeo.com/50629665
So some crazy people will be selling us oil is this news?
"We’ve now seen Putin take a major, menacing step in support of the Iranians by introducing combat forces into Syria."
American Thinker? lol.
Tylers,,, Thanks for showing us what we're missing when not watching Matrix News.
That is first... BULLSHIT & propaganda article.
This is world proven oil reseves.
https://en.wikipedia.org/wiki/List_of_countries_by_proven_oil_reserves
That's not even including this Kara's sea basin finding.
http://barentsobserver.com/en/energy/2015/03/more-oil-kara-sea-field-ene...
US & CAN oil is shale's type. It cost more to extract. It's dirty (high sulfur, mercury content).
http://www.businessinsider.com/there-are-mountains-of-sulfur-growing-in-...
http://www.nytimes.com/2013/05/18/business/energy-environment/mountain-o...
So, in this lowest oil price? Are you able to sustains operation??
This is how much it cost to extract Russian oils.
https://www.rt.com/business/318527-rosneft-sechin-oil-shale-us/
Quote:
"He also said that production costs for Russian oil companies are the lowest in the world - $4 per barrel. At Rosneft the figure is even lower - $2.80, which is the best in the world, according to Sechin."
If russia wants to corner (Saudi's?) It just increase production (which is already biggest in the world) and crash the oil price to <20 $. See who's panicking..
Don't believe? See who's offering OPEC membership to Russia.
http://russia-insider.com/en/business/confirmed-saudi-arabia-offered-rus...
https://www.rt.com/business/230955-russia-oil-opec-policy/
And Saudi's offer to cuts its production if Russia agrees to cuts its own. Russia? Declines.
http://www.telegraph.co.uk/finance/11847300/Russia-flirts-with-Saudi-Ara...
- - -
Right now? What you see is Russia already punishing OPEC for trying to bring down Russian economy (which backfired spectacularly, as you seen from Russia Fx reserves growth. while the other are plunging. look at tradingeconomic site).
Putin? is the one the last laugh in this saga..
Thanks for linking that RT article It gives the Russian production cost and these people don't want to believe it. Your post says the same as mine in a different way. You get it my friend. The evil babykiller Putin's got that petrodollar by the nutsack and they know it. His rigs are heading north not south. The international rule currently is, it is your countries oil in the Artic to where your continental shelf extends under water. Take a look at the underwater topography of the Artic ocean and then try not to laugh your ass off. And once again..........................Check...10 moves ahead of them.
Agreed. Thanks for the links. I think ol Stevie boy Chambers is John McStains bastard son, if not, he's at best a hard-nosed Republican consuming sour grapes.
People still seem to think that oil will be plentiful in the future in the US even as they sat and watched the hash pipe scraped for the last 10 years while the industry remains as a whole buried in debt. The first oil boom kicked off in 1859, I think it is safe to assume that the US has gotten real familiar with it's oil stores.
Obama is the greatest president ever, he killed mystery Babylon.
No Rus War For Oil™!
Disconnect oil from the dollar. Disconnect the dollar from the worlds reserve currency. Disconnect jewmerica from its unlimited credit card. There is a cold war going on, the moves for a bloodless checkmate have to be lined up.
And the USA will simply watch?
No , the petrodollar will be in threat , American & its allies economies too.
So they will all throw the towel
First Obama will travel to Israel and stand in the Solomon's ex-Temple of Jews or Al-Aqsa mosque where , in past, animals were sacrificed , their blood was sprinkled (& souls harvested) TO PLEASE GOD
Then it will be clear what is written in Bible 'Abomination standing in the holiest of holies'
Or the A$$LickingDemonicLiarObama who is opposed to all moral values (except Cabal's/Money/666)
Then he will decide to invade all middle-east , fight with Russian coalition Iran et al and also use Nuclear bombs with the confidence gained from HiroShima & Nagasaki
Revelation will come true
--------------------------------
Righteous : Start praying, fasting & meditating for the deliverance
A$$LickingDemonicLiarObama
Something wrong with ass licking? The old lady finds it quite pleasant.
Once again this bullshit about oil. And even worse than usual stuff. No, Putin is not in Syria because of oil! No, Russia is not on any "march" anywhere and Russia has no axis of evil. When do people start using their brains??? Or at least look at the map! Russia is in Syria because of this:
"Islamic State threat to Russia is real – FSB"
"Russia may send border guards to Tajikistan to fend off ISIS - Defense Ministry"
Russia’s deputy defense minister has told reporters that it’s possible the Russian military would have to fight terrorism by putting regular units on the border between Afghanistan and Tajikistan. The general did not exclude the Russian military resuming the armed protection of the Tajikistan-Afghanistan border. Borisov’s comment was made after the meeting between the leaders of Russia and Kazakhstan who, according to Kazakh President Nursultan Nazarbayev, “were very concerned with the situation in Tajikistan.” Last week Vladimir Putin had talks with Tajik President Emomali Rakhmon at which he said the Russian authorities were very much concerned by the situation in Tajikistan in particular and in the Central Asian region as a whole. Also last week Russia’s General Staff held an international conference on the situation in Afghanistan at which Colonel-General Igor Sergun warned that Islamic State terrorists (IS, previously known as ISIL and ISIS) can step up its expansion to countries neighboring Syria and Iraq. The general added that according to intelligence sources the terrorists see Afghanistan as a possible main base for Central Asia operations and this poses a real threat to the Russian Federation. Currently there are about 3,000 Islamic State fighters in Afghanistan and growing, Sergun explained."
I put it very simply, once again: the NWO is still in war with Russia and it is using the Islamic State as a tool. The purpose is the same as in any war, destruction of the enemy (Russia). Russians know very well that they are the main target of the Empire of Chaos. And they will not stand for it. Nor will China, for that matter. They are target as well - especially their muslim province. Russia is now at war and they have to win it, like they won WWII.
This is what Putin said to the Turkish ambassador: "Tell your dictator president he can go to hell along with his ISIL terrorist and I shall make Syria to nothing but a 'Big Stalingrad', for Erdogan and his Saudi allies are no less vicious than Adolf Hitler," replied Vladimir Putin in the 2-hour closed door meeting with Turkish emissary. For Russia, this is getting very personal.
Interesting thought for the NWO ...
You stand in a room where one representative of all nations stand.
Then you start the game ...
Russia at war with the NWO ...
China at war with the NWO ...
Iran at war with the NWO ...
In the end you will have the handful of nations that are the main bases for the NWO.
Reckon there will be 3 on the list. with quite a few once the game begins who would move to Russia / China.
Cos I'm unable to think for myself Steve, please tell me more about those all beasty Iranian invasions of other soverign nations during the last 100 years or so, give or take, and while you're at it, their ongoing illegal and imoral support of their friendly neighbours.
Steve Chambers, 'American Conditioned Thinker' more like....Ha Ha!
Putin made a deal with the Saudis. My hunch is that deal pertains to killing the petro dollar for good. Nixon made a deal with the Saudis and now we may see the REVERSE with the new opec (Russia,China,Iran and friends), along with shutting down the black ops/ISIS/Turkey stealing oil from Kurdistan and other parts of the region. The key was freezing up the dirty funds and resources backing ISIS
I'm working on a machine that turns delusional, warmongering, rabid, self serving, money grabbing, lying, murderous thoughts into energy.
The power it will produce is measured in 'Clintons'.
I'll be posting my crowdfunding details later.
You'll need to give your invention a catchy name.
I suggest the "Clinton Sewage Machine".
... iraq has always been on america's, 'must-have-super`colony' taking the whole of consolidation with but a jihadist`malaria swatting at these IS`mosquitos fomented by a surreal parched medievil caliphate[?] stagnating in the 'levant's`wadi`quick'sand'syraq [as pepe escobar coined it].! the staging ground to finally take back what the sykes`picot forbade a century prior!!! period! syraqi malaria gone wild where the half`life of a suicide bomber is twenty'virgins maximus!!!
saudi 's were a problem since day one. the uae, qatar, bahrain [all gcc's] are too volatile a spontaneous flash-point of contentious combustion. who the fuck wants them? not even the chinese or russians have any use for their hypocritical two-sided`faced dictatorships!
kuwait/iraq is where its at? syria is just a fool's errand,... a red herring...[!]
nuland should have waited? big mistake! putin realized then that the Zbig was looking for the 'grand finale' which has blown up in america's face. obama isn't a good listener and a terrible strategist-- in fact the guy is so over his head. he, bush #43, and cheney will go down in history as the worst of the worst with clinton, rumsfeld and bush #41 close seconds!
ref: Iraq, Iran, Syria, and Lebanon will become whole with the 'Persians' strong leadership, but with no intrusions.
"US bases in Iraq: PartI: Baghdad" http://indexresearch.blogspot.com/2006/04/us-bases-in-iraq-part-i-baghdad.html
https://en.wikipedia.org/wiki/M.W._Kellogg KBR/ Iraq War/ Cheney & Haliburtin [war profiteering is a crime!]
https://en.wikipedia.org/wiki/List_of_United_States_Military_installations_in_Iraq_during_Operation_Iraqi_Freedom_(OIF) Note: these bases are permanent or were meant to be once the iraqi's imploded as obama knew would happened when he pulled out all troops. designed to create a civil war with the ussa walking in as saviors, but this tyme as occupiers forever.
guess what...?
The article makes a lot sense. If Russia and Iran keep pushing the terrorist, they have to move to Saudi and Turkey.
The terrorist sure will not go back into a peaceful life. It seems chaos to have already started in Turkey.
The Turkey Government thru Judiciary has just forbidden media to publish anything about it.
There are also Videos, where terrorist are screaming at western world for abandoning them. etc. very funny to watch.
Payback is a bitch.
I think Steve Chambers thinks perfectly like an American. Talking direct war with Saudi Arabia under a nuclear umbrella. Just like the sick fucks who are currently running things in Washington.
move over Lloyd, I guess Putin, and the ayatollahs are doing gods work now.
chambers brings out points I guess that's why American thinker, he makes very broad somewhat wrong headed assumtions sometimes.
#1 if you think the EPA is going to allow fracking in the mountains, and a fresh water source heading anywhere south, your dreaming.
#2 the world won't need s.a. oil anymore, maybe america won't depending on politicians, what about e.u., and most other countries have a manufacturing base, and internal combustion vehicle engines.
#3 the coincidence of oil price crashing, the same time as s.a.. Qatar, us, nato, and others recruiting training, funding and arming isis.
everyone claiming putin has perfect timing, putin has resources, he's probably got 90% of Clinton's e-mails, from lybia, right up to the day she stepped down, sure Russia has taken a hit, but look at the rest of the world now.
the msm played right into his hands, how long was it 50-50 depending on the day, s.a. tring to kill fracking in us, the next day it was their trying to destroy Russia, when putin knew the plan all along.
What a load of crap. These days, if you want to get headlines, just mention Russia or Putin in the article. It's like using half-naked pictures of women in advertising.
Pure BS. Syria action just restores the balance of power in the Middle East. Iraq-Syria-Iran will be in the Russian sphere of influence.
Russia will not risk a nuclear war just to raise the price of oil. If they were willing to do this, there are easier ways, they could just bomb the oil fields in SA.
The cure for low oil prices are low oil prices as marginal production is not coming online anymore. This will raise the price later. Also production cuts would be an easier way to raise the price than risking a big war.
And the article ends with the stupidly naive notion, that it matters who the president is.
Not, it does not matter. The US was caught off-guard, because their intelligence is doctored to fit the narrative. And the US is also reluctant to risk WW3 over Syria.
Fantasy.
Junk article if anything it is warmongering from the USA propoganda machine.
For 40 years populations have lived under the debauchery of the US dollar that the true price of oil was lost like everything else. That is the real danger to the world not all this bullshit over Russia where to be honest I do not care if it restores some kind of order to the states that have been made to fail.
One lesson for US regime change foreign policy, don't because you create a power vaccum that somebody else fills and 99 times out of 100 you end up with somebody worse likely because they have been on the end of a US drone.
What a load of bullshit
Rush talks about the free flow of oil at market prices .... Obama want's to shut it down for environmental fairy tale unicorn reasons .... the Russians want to corner the market .... like greedy "Capitalists" ?
To the author of this garbage: What works in the game of Risk doesn't neccessarily work in the real world. Back to your mom's basement with you.
Russia and Iran are in Syria due to the US invasions, occupations, war, color revolutions and terrorrisim in the middle east.
They both know the road to Moscow and Tehran runs right through Damascus.
period.
The president's plane is known .... as Air Force 1 .... although there are two .... with Monedian logic .... the Russian aircraft carrier .... should be called .... Navy 2 .... although, there's only one ?
They say commercial aircraft .... at high altitude .... are not flying (by air foil) .... they are planing at high attack angle and jet propulsion .... maybe, the skate board ramp .... on Russian and Chinese aircraft carriers .... directs the thrust downward abruptly .... and serves as a last resort brake .... when the tail hook doesn't snag .... don't they have steam catapults .... which have been around since the thirties ?
Far fetched nonsense!!
Here is the deal. With the collapse of the Soviet Union we put a plan in play to capture the word’s oil supply. That plan included the destabilization of Middle Eastern regimes that would allow us to champion factions within those countries that would secure our oil interests. The chaos that we unleased fired up sectarian violence and ethnic cleansing and localized genocide ensued. Europe is now awash in refugees fleeing that chaos.
As always with such grand schemes the unintended blow back is ferocious. We have reignited Russian nationalism. As WW II demonstrated when faced with a threat to their existence, the Russians are capable of super human feats of sacrifice and resistance. Stalingrad proved that on their own turf, they are unbeatable.
Europe is now awash in the most irresistible form of invaders, political and economic refugees. They are coming by the thousands. They are unsettling neighborhoods and they will not assimilate. Oil and water do not mix. Look at Lebanon to see how this grand social experiment will play out. Within a century or so, the Alps and the far north may very well be the last refuge of European culture.
The U.S. is on a similar track. The federal union may survive if the central authoritarians are forced to release their strangle hold on the states. If states are once again able to reflect the mores of their citizens, the federal union may survive. If not, then expect the union to fracture. Get ready for a caliphate in Michigan and protestant prayers in Mississippi. Get ready for states to either go Greek or print their own money. Everything is going local. If we are lucky imagine the 19th century with flat screens and cell phones. If we are unlucky and the rigidity persists until the system fractures and collapses, expect a great famine. https://en.wikipedia.org/wiki/Great_Famine_of_1315%E2%80%9317
"Russia is on the march, in unison with the emboldened and enriched Iranians, thanks again to our president."
Unlike many posters who hasten to critise , I have no idea whether the hypothesis around Russia's motives is accurate or not. What cannot be disputed however is that Russia and Iran are acting with unprecedented ambition and indeed agression in the M-E. It is difficult to believe that the State Department has not contributed to the climate that has made this possible and that the US, under the Obama administation, is in retreat at the risk of her strategic interests. There does seem to be a seismic shift and the US is on the back foot here. BTW that's the way the US' traditional allies see it too and Russia's acendancy will come at a heavy price to them and the US.
Yes, following "unprecedented ambition" by the west. Two wars (Iraq, Afghanistan) , one proxy civil war (Sryia), one completed overthrow (Libya) and one overthrow resulting in civil war with potentially global consequences (Ukraine). We have nobody to blame but ourselves for "Putin's ambition". More like "Putin's self defense".
ZeroHedge is good for a lot of stuff, but their understanding of Russia's objectives and motives is just downright retarded.
I'm sick of you guys trying to hammer in that Russia is doing this all for oil.
Russia is trying to stop the Western satanic plots to create a domino effect of failed states that include Syria that will be used as terrorist launching grounds to destabilize the region - ultimately the underbelly of Russia and into Russia itself. This has been a Western Intelligence services wet dream for decades.
Do you know? That the distance from Syria to Russia is th equivalent of New York to Ohio? That's only a few hours drive. As Russia knows well, if Syria falls, that means terrorist, like in Libya, will rule and will begin to try and infiltrate Russia and begin armed attacks their to destabilize Russia - and we all know who wants that.
I suggest that Steve Chambers feel free to go enlist at his nearest army recruitment center. ASAP
Unlikely to last.
If Saudi Arabia is eliminated as Russia's competitor through curtailed production...
...Then Iran will be the new number 2 oil exporter.
Direct oil sales competition between Russia and Iran will not be conducive to a peaceful relationship.
Author strategically does not mention Syria's 'insurgency' began weeks after Assad publically denied pipeline access to a Euro-Saudi consortium stating that he would not hurt his ally, Russia, in this way.
On the subject of Rocky Mountain Shales...the 'Green River' Deposit I can personally vouch.
I grew up there. And camped there most every weekend.
Dad always told us to find the black rocks and throw them in the fire if we couldn't find enough wood from deadfall. It was never more than a few minutes search.
Hmmmm. No mention of Talmudistan
Obama is a professional gay activist. If Asad declaire gay marriage legal in Syria, Obama will become his top friend.
Obama is a professional gay activist. If Asad declaire gay marriage legal in Syria, Obama will become his top friend.