Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: oil

What if Your Customer Can’t Buy Your Product, but Wants to?

This article was published by The McAlvany Intelligence Advisor on Monday, October 16, 2017:

There are two basic rules of economics. The first is: if prices go down, more will be demanded. The second is: both sides of any economic transaction must benefit or there’s no deal.

The fracking revolution in the United States has pushed the price of crude oil down to the point where it is threatening the very existence of the OPEC cartel. Consumers are saving at the pump and the energy industry in the U.S. employs more than 10 million people, making up eight percent of the country’s gross domestic product.

But there’s been an all but invisible transformation taking place in natural gas. At least two of the Big Oil companies sell more natural gas than they do crude oil.

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U.S. Natural Gas Exports to Add 500,000 Jobs, $73 Billion to Economy

This article appeared online at TheNewAmerican.com on Monday, October 16, 2017:

Liquefied natural gas (LNG) tanker, section vi...

Liquefied natural gas (LNG) tanker, section view from side.

The latest estimate from API, the energy trade group, is that increased exports of LNG (liquefied natural gas) over the next 20 years will add nearly 500,000 jobs to the American economy and $73 billion to the country’s gross domestic product (GDP). Marty Durbin, API’s chief strategy officer, stated, “This report confirms that increasing U.S. LNG exports would bring great benefits to American workers and consumers and [to] the U.S. economy. Increasing the use of U.S. natural gas throughout the world means more production here at home, cleaner air, and increased energy security for our nation and our allies.”

The revolution taking place in natural gas has been almost completely overlooked.

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Latest Report: Crude Won’t See $60 a Barrel For at Least a Year

English: Flag of the Organization of Petroleum...

This article appeared online at TheNewAmerican.com on Friday, October 13, 2017:

According to oil seers, there are two magic numbers: the five-year average of five billion barrels in crude-oil reserves held around the world in salt caverns, oil tankers, and oil storage tanks; and $60 for a barrel of oil, priced in London.

In January there were 318 million barrels of “surplus” crude above that five-year average, but by the end of September that number had dropped to “only” 170 million barrels of “surplus.” Oil traders saw the trend toward “balance” — that magical, mystical, and entirely theoretical moment when worldwide crude-oil inventories would hit that five billion barrel marker and thus be “balanced” — and started getting excited. Placing bets that oil prices would move higher as worldwide inventories continued to drop, they placed bullish bets in the futures market, which hit new highs in September.

But according to the monthly report issued by the International Energy Agency (EIA) on Thursday, that’s likely to be as good as it’s going to get:

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OPEC is Textbook Example of Classic Cartel

This article was published by The McAlvany Intelligence Advisor on Wednesday, October 11, 2017:

the new OPEC headquarters in Vienna Español: S...

OPEC headquarters in Vienna

Free market economists have long considered OPEC as a textbook example of the anti-free market cartel. Its mission statement confirms it:

To coordinate and unify the petroleum policies of its member countries and ensure the stabilization of oil markets, in order to secure an efficient, economic, and regular supply of petroleum to consumers, a steady income to producers, and a fair return on capital for those investing in the petroleum industry.

This is of course the “siren song” of every cartel:

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If Socialism Is the Problem in Venezuela, More Sanctions Are Not the Solution

This article appeared online at TheNewAmerican.com on Wednesday, September 20, 2017:

Overshadowed by his remarks concerning North Korea’s “Rocket Man” and the “worst ever” Iranian nuclear deal, President Donald Trump’s views on Venezuela in his speech at the United Nations on Tuesday were soft-pedalled by the mainstream media.

But they were spot on:

The problem in Venezuela is not that socialism has been poorly implemented but that socialism has been faithfully implemented. From the Soviet Union to Cuba, Venezuela — wherever socialism or communism has been adopted, it has delivered anguish, devastation and failure.

 

Those who preach the tenets of these discredited ideologies only contribute to the continued suffering of the people who live under these cruel systems

Trump then added, without being explicit:

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Hurricanes Hammer OPEC as Well

This article appeared online at TheNewAmerican.com on Monday, September 11, 2017: 

English: Flag of the Organization of Petroleum...

Estimates are that Hurricane Irma knocked out the power to nearly six million Floridians’ homes and businesses, while both Harvey and Irma have either destroyed or heavily damaged 300,000 homes in Texas and hundreds of thousands more in Florida. Further estimates are that these two massive storms have reduced demand for oil by nearly a million barrels a day.

This is being reflected in the price of NYMEX (New York Mercantile Exchange) crude oil dropping to $47 a barrel early Monday. Last Wednesday crude was selling at more than $49.

Part of the problem facing OPEC and its grand plan to cut production to raise oil prices was its assumption that

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Hurricane Harvey, President Trump Putting More Pressure on Venezuela

This article appeared online at TheNewAmerican.com on Sunday, August 27, 2017:

On Friday President Donald Trump once again ramped up sanctions against Venezuela’s Marxist dictator, shutting off his ability to sell new debt or equity in the U.S. financial markets. On Saturday, Hurricane Harvey, the worst hurricane to hit the Gulf Coast in 50 years, has all but sealed Maduro’s fate.

Following Maduro’s installation of his illegal “constituent assembly” in July, President Trump placed sanctions on Maduro himself, freezing any and all of his assets lying within American jurisdiction. A week later Trump added a few of Maduro’s cronies to that list, and on August 9 he added a few more. At the time The New American expressed skepticism that they would have any effect on Maduro’s obstinacy and determination to continue policies that have caused Venezuela’s economy to shrink by 35 percent just since 2014.

On Friday the Trump administration broadened those sanctions to include

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Dakota Pipeline Co. Sues Greenpeace, Earth First! Under RICO for Conspiracy to Halt Construction

This article appeared online at TheNewAmerican.com on Wednesday, August 23, 2017:  

Greenpeace word mark Русский: Текстовый символ...

Energy Transfer Partners (ETP), the company behind construction of the Dakota Access Pipeline, lashed out against the “Enterprise” in a major lawsuit filed on Tuesday. The 231-page lawsuit accused Greenpeace International, Greenpeace, Inc., Greenpeace Fund, Inc., BankTrack, Earth First!, and other environmental organizations and individuals of participating in a criminal effort to damage the pipeline and ETP’s reputation among its partners and lenders. It is seeking nearly a billion dollars in compensatory and punitive damages under the RICO statute.

RICO, enacted as part of the Organized Crime Control Act of 1970, was originally designed to attack the Mafia’s illegal activities, but has been expanded over the years. It extends criminal penalties not only to the miscreants themselves but to their bosses, funders, and enablers.

ETP said that the Enterprise

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Steve Bannon – Both Friend and Enemy of Freedom – Returns to Breitbart

This article was published by The McAlvany Intelligence Advisor on Monday, August 21, 2017: 

It didn’t take Steve Bannon – Trump’s chief political strategist – very long to bid adieu and pick up where he left off at Breitbart. On Friday he explained his widely anticipated departure:

On August 7th, I talked to [Chief of Staff John] Kelly and to the President, and I told them that my resignation would be effective the following Monday, on the 14th. I’d always planned on spending one year. General Kelly has brought in a great new system, but I said it would be best [to leave]. I want to get back to Breitbart.

On Friday night, he was back at work as Executive Chairman at Breitbart, saying:

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Bannon’s Ouster as Trump’s Chief Strategist Largely Self-inflicted

This article appeared online at TheNewAmerican.com on Sunday, August 20, 2017:

Immediately upon his termination as President Trump’s chief political strategist last week, Steve Bannon returned to his former position as executive chairman of Breitbart News. In fact, within hours of his return he chaired an “all-hands” meeting to plan the future.

Bannon said it was all part of a plan: “On August 7th, I talked to [Chief of Staff John] Kelly and to the President, and I told them that my resignation would be effective the following Monday, on the 14th. I’d always planned on spending one year. General Kelly has brought in a great new system, but I said it would be best [to leave]. I want to get back to Breitbart.” Upon his return to Brietbart, Bannon said:

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Morgan Stanley: Tesla Not as Green as You Think

This article appeared online at TheNewAmerican.com on Friday, August 18, 2017:

English: Tesla Roadster Sport 2.5, the fourth-...

Tesla Roadster Sport 2.5, the fourth-generation Roadster from electric carmaker Tesla Motors Inc.

Morgan Stanley, the international banking behemoth, released the results of its study on the best “green” companies in which to invest. This is based, said the bank, on the assumptions that some, perhaps many, investors who have drunk the “green Kool-Aid” want to invest in ways to “save” the environment and fight against “climate change.” Missing from the top of their list is perhaps the most visible “green” automobile company: Tesla, Inc., formerly known as Tesla Motors.

After comparing the savings in carbon dioxide (CO2) achieved by Tesla’s high-mileage electric vehicles to all the “secondary and tertiary” factors involved in their manufacture, Morgan Stanley said,

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Questions for President Trump on Venezuela

This article was published by The McAlvany Intelligence Advisor on Monday, August 14, 2017:

Português: Brasília - O chanceler da Venezuela...

Nicolas Maduro

Inquiring minds are asking: what on earth is the US doing meddling in the affairs of Venezuela? The media has broadcast the rolling and accelerating disaster taking place there, with some even properly blaming it on socialist practices unleased by Marxist Hugo Chavez (they are called “Chavism” and its supporters are called “Chavists”) and his protégé, Nicolas Maduro.

Those policies, enforced with increasing vengeance upon a powerless citizenry, have all but destroyed a country that once was one of the most prosperous in South America.

Grant the point. But does this justify in any way U.S. interference? Does it justify sanctions, freezing of assets of Maduro and his henchmen, and removing the freedom of Americans to do business with him, or them? Notice please that the sanctions only apply to about 30 of Maduro’s people and not to any of the 20 or so American oil refineries currently supporting Maduro’s Marxist regime to the tune of a billion dollars a month.

Here are some other questions:

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OPEC Members Continue Non-compliance

This article appeared online at TheNewAmerican.com on Friday, August 11, 2017:

English: Flag of the Organization of Petroleum...

The Paris-based International Energy Agency (IEA) noted in its latest report released on Friday that non-compliance among OPEC’s members, and those non-members who also agreed to cut oil production, increased again in July. Non-compliance is the death knell for any cartel, and OPEC is no exception.

Specifically, non-compliance among the cartel’s members rose to 25 percent in July, the highest since the agreement was inked in January. Among non-OPEC members who signed on to that agreement, non-compliance was at 33 percent in July.

Put another way,

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Additional Sanctions by United States Proving of Little Value in Venezuela

This article appeared online at TheNewAmerican.com on Thursday, August 10, 2017:  

Nicolas Maduro

Nicolas Maduro

The U.S. Treasury Department slapped sanctions on another eight Venezuelan government officials on Wednesday, bringing the total now to nearly 30. This is a partial fulfillment of a promise by the Trump administration to sanction everyone involved in the establishment of the fraudulent Venezuelan “constituent assembly” sworn in on Tuesday.

Included among the eight is Adan Chavez, the late Marxist President Hugo Chavez’ elder brother, who now serves in the new assembly as secretary of its presidential commission.

In making the announcement, Treasury Secretary Steven Mnuchin said,

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U.S. Pulls Families from Caracas; Airlines End Flights Before Sunday’s Crucial Vote

This article appeared online at TheNewAmerican.com on Friday, July 28, 2017: 

The Coat of arms of Venezuela

The Coat of arms of Venezuela

In its foreign travel advisory issued Thursday, the U.S. State Department warned American visitors against traveling to Venezuela and ordered family members of U.S. government employees at its embassy in Caracas to leave the country. It also offered assistance for those employees wanting to leave before the country’s crucial and controversial election on Sunday. The order and warnings were due to “social unrest, violent crime and pervasive food and medicine shortages” in the country.

Sunday’s vote could be crucial for the direction of the country run by Marxist Nicolas Maduro. Already rumors of vote fraud are suggesting that

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OPEC Getting Some Help from Nervous Energy Company Bondholders

This article was published by The McAlvany Intelligence Advisor on Friday, July 21, 2017:

It’s no wonder that investors owning bonds of companies in the energy business are getting nervous. They purchased high-yield bonds issued by them, seeking income when there was little to be had elsewhere. Last year they were rewarded with 38 percent gains in their holdings as the industry rebounded.

But in June Bloomberg reported that those same bondholders saw their values drop by two percent. This is on top of energy stocks that have tanked 16 percent so far this year.

It’s the vicious circle facing frackers.

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Opponents of Venezuela’s Maduro Will Launch “Final Offensive” on Thursday

This article appeared online at TheNewAmerican.com on Wednesday, July 19, 2017:  

Thursday’s called strike could be the culmination of the rush of events leading to the successful removal of Venezuela’s Marxist dictator, Nicolas Maduro (shown). The strike called by Maduro’s political opposition is the “final offensive” in the months-long effort to depose him, according to Freddy Guevara, one of the opposition leaders. Said Guevara, “We are calling all the country to take part in a massive and violence-free protest through a nationwide strike for 24 hours,” adding that it would be a “mechanism for pressure and to prepare for the definitive escalation to take place next week.”

Last Sunday nearly 7½ million Venezuelans voted informally to protest Maduro’s plans to replace key members of the country’s legislative body, creating a “Constituent Assembly” that would lay the groundwork for rewriting the country’s constitution and cementing Maduro into office permanently. That vote is scheduled for Sunday, July 30.

One of those overseeing last Sunday’s plebiscite was the president of the University of Venezuela, Cecilia Garcia Arocha. She said the result of last Sunday’s vote “sent a clear message to the national executive [the Maduro regime] and the world.”

The world is listening.

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From Hero to Zero: $2-Billion Private Equity Fund Goes Broke in Oil

This article appeared online at TheNewAmerican.com on Tuesday, July 18, 2017:

J. Paul Getty Trust

EnerVest Ltd., a Houston-based private equity firm run by John Walker, is being taken over by one of its largest lenders to satisfy its unpaid debts. The firm raised capital from large investors, foundations, and pension plans and bought existing oil wells, improved them, and sent the dividends back to the investors.

In 2011, it had come off a very successful year. It owned 19,000 onshore oil wells on four million acres of land in 12 states. Its previous investments delivered a compounded annual return of 36 percent, a track record that made it relatively easy for Walker to raise additional capital. In a classic understatement, Walker said, “We had an outstanding year.” He explained just how he and his company did it; he bought cheap and sold dear, without using borrowed funds:

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From Hero to Zero: $2-Billion Private Equity Fund Goes Broke in Oil

This article appeared online at TheNewAmerican.com on Monday, July 17, 2017:  

Wells Fargo

Wells Fargo

EnerVest Ltd., a Houston-based private equity firm run by John Walker, is being taken over by Wells Fargo, one of its largest lenders, to satisfy its unpaid debts. The firm raised capital from large investors, foundations, and pension plans and bought existing oil wells, improved them, and sent the dividends back to the investors.

In 2011, it had come off a very successful year. It owned 19,000 onshore oil wells on four million acres of land in 12 states. Its previous investments delivered a compounded annual return of 36 percent, a track record that made it relatively easy for Walker to raise additional capital. In a classic understatement, Walker said, “We had an outstanding year.” He explained just how he and his company did it; he bought cheap and sold dear, without using borrowed funds:

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Crude Oil to Climb to $60 a Barrel, Claim Aramco’s CEO, Citi, and Goldman

This article appeared online at TheNewAmerican.com on Monday, July 10, 2017:  

English: Flag of the Organization of Petroleum...

Claiming that the worldwide demand for crude oil will jump by 20 million barrels of oil per day over the next five years, Amin Nasser, the CEO of Saudi Aramco, said, “Investments in smaller increments such as [U.S.] shale oil will just not cut it.” Speaking at the World Petroleum Congress in Istanbul last week, Nasser said:

If we look at the long-term situation of oil supplies, for example, the picture is becoming increasingly worrying.

 

Financial investors are shying away from making much-needed large investments in oil exploration, long-term development and the related infrastructure….

 

New discoveries are also on a downtrend. The volume of conventional [non-shale] oil discovered around the world over the past four years has more than halved compared with the previous four.

Speaking to his own interest, Nasser is trying to talk up the value of his company, which remains on schedule to sell five percent of itself in what some are calling “the world’s largest IPO [initial public offering].” To stress the point, Nasser said

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.