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: Cartel

The Internet: Gutenberg Press 2.0

In a remarkable coalescence of time and circumstance, Michael Hart typed the Declaration of Independence into his computer on July 4th, 1971, Independence Day, and launched Project Gutenberg,

http://www.gutenberg.org/    Project Gutenberg

the world’s largest non-profit digital library available on the Internet.

http://www.nytimes.com/2011/09/09/business/michael-hart-a-pioneer-of-e-books-dies-at-64.html?_r=3&pagewanted=2   the world’s largest digital library

On his way home from a fireworks display, Hart stopped in at a grocery store and was given a copy of the Declaration of Independence, printed on parchment. He typed the text into his computer, intending to send it as an email to his friends on Arpanet. A colleague persuaded him that his message would cause the system to crash and so Hart merely posted a note that the full text could be downloaded instead. And thus, according to the obituary noting his passing on September 6th, 2011 in the New York Times, “Project Gutenberg was born.”

http://www.gutenberg.org/   Project Gutenberg

Project Gutenberg, with more than 38,000 free eBooks available online, represents Hart’s goal to “encourage the creation and distribution of e-books to help break down the bars of ignorance and illiteracy.” Even in its infancy Hart saw the potential, according to the Times, of “overturning all established power structures.” (emphasis added)

It is doubtful that Hart in 1971 had any idea of how the growth of the Internet would impact the world, just as the son of a cloth merchant in the small German town of Mainz, Johannes Gensfleisch zur Laden zum Gutenberg,

http://en.wikipedia.org/wiki/Johannes_Gutenberg   Gutenberg

would have any idea of how his invention of the moveable-type printing press in 1436 would impact his world. Not only is the Gutenberg press responsible for the printing revolution that spread across Europe and the world, it had enormous impact in the flowering of the Renaissance, the Protestant Reformation and the Scientific Revolution. It was responsible for the formation of the basis for the modern market economy, the development and spread of the concept of national sovereignty, and the revolution leading to the Declaration of Independence and the establishment of the American republic.

Gutenberg’s first project was the printing of 180 copies of the Bible, each of which sold for much less than a handwritten Bible which could take a single scribe more than a year to complete. Within six years there were 1000 copies in print.

http://thedailybell.com/2645/Martin-Luther   there were 1000 copies in print

As his printing press was copied and spread throughout the continent,

http://en.wikipedia.org/wiki/Global_spread_of_the_printing_press   spread    through the continent

by the year 1500 one thousand printing presses were in operation and had already produced more than eight million books. By 1600 that number had grown more than twenty-fold to between 150 and 200 million. And the discovery and development of sea routes West (Christopher Columbus, 1492) and East (Vasco da Gama, 1498) greatly expanded the use of his printing press. By 1620 the impact of the Gutenberg press caused English philosopher Francis Bacon to remark that it “has changed the whole face and state of things throughout the world.” In America, Mark Twain wrote:

What the world is today, good and bad, it owes to Gutenberg. Everything can be traced to this source, but we are bound to bring him homage…for the bad that this colossal invention has brought about is overshadowed a thousand times by the good with which mankind has been favored.

The press enabled friends of Martin Luther to distribute copies of his “95 Theses” across Germany within two weeks, all across Europe within two months, and within the year into France, England and Italy.

The challenge of the Reformation to the existing establishment led to The Thirty Years’ War

http://en.wikipedia.org/wiki/Thirty_Years’_War   Thirty Years’ War

which ended with the signing of a series of peace treaties summarized as the Peace of Westphalia, establishing vital concepts now taken for granted: sovereignty of states, right to self-determination, equality between states and the principle of non-intervention of one state in the internal affairs of another.

http://en.wikipedia.org/wiki/Westphalian_sovereignty  vital concepts

John Calvin’s Institutes of the Christian Religion was propelled by the Gutenberg miracle so that by 1560 the Scottish parliament had repudiated the Pope’s authority and approved in its stead the Protestant Confession of Faith. The Scottish Reformation reached America and influenced the American Revolution. Calvin’s influence was so great that Leopold von Ranke,

http://en.wikipedia.org/wiki/Leopold_von_Ranke  Leopold von Ranke

one of the profoundest scholars of the times, concluded that “John Calvin was the virtual founder of America.”

Thomas Paine’s pamphlet, Common Sense,

http://en.wikipedia.org/wiki/Common_Sense_(pamphlet)   Common Sense

rode not only the revolutionary discontent of the colonies but the increasingly common printing press to become, according to historian Gordon S. Wood, “the most incendiary and popular pamphlet of the entire revolutionary era.” First published anonymously in January, 1776, the 48-page booklet sold 120,000 copies in its first three months, 500,000 in its first year, and went through twenty-five editions in its first year alone. George Trevelyan, author of History of the American Revolution, said,

It would be difficult to name any human composition which has had an effect at once so instant, so extended and so lasting…It was pirated, parodied and imitated, and translated into the language of every country where the new republic had well-wishers. It worked nothing short of miracles and turned Tories into Whigs.

And so, from the development of movable type in 1436 to the printing of the Gutenberg Bible in 1455, to the explosive duplication of Luther’s 95 Theses beginning in 1518, to the Scottish immigration to America in the 1600s, to the Peace of Westphalia in 1668, to the bursting forth of “Common Sense” in January 1776, to the Declaration of Independence, one can trace the impact that the Gutenberg Press had on political, social and religious institutions in just over three hundred years.

But it took just three years from the start of the commercialization of the internet in 1995 (the year the first sale on Echo Bay – later to become EBay – was completed)

http://sixrevisions.com/resources/the-history-of-the-internet-in-a-nutshell/    first sale on Echo Bay

that the political power of the Internet as the “alternative media” began to be felt. Newsweek reporter Michael Isikoff had been investigating the relationship between Monica Lewinsky

http://en.wikipedia.org/wiki/Lewinsky_scandal#Denial_and_subsequent_admission    Monica Lewinsky

and then-President Bill Clinton for nearly a year, and his story was about to be published on Saturday morning, January 17th, 1998. After listening to one of the taped conversations between Lewinsky and a friend, Isikoff’s editors decided to spike the story. Matt Drudge of The Drudge Report,

http://en.wikipedia.org/wiki/The_Drudge_Report    The Drudge Report

an online news aggregator, learned of the decision to withhold the story, and ran his exposé with the headline: “Newsweek Kills Story on White House Intern: 23-Year-Old Sex Relationship with President,”

http://www.drudgereportarchives.com/data/2002/01/17/20020117_175502_ml.htm   ran his expose

which instantly, profoundly and permanently transformed the Internet into an alternative to the mainstream media. By Sunday morning, so many individuals were seeking more information from Drudge’s website that it couldn’t handle all the traffic.

http://news.bbc.co.uk/2/hi/special_report/1998/clinton_scandal/50031.stm   couldn’t handle all the traffic.

According to BBC News, “This may be the first time that a story of such consequence developed on the Internet. Love him or hate him, Matt Drudge’s report on the Clinton scandal is the most visible sign to date of the changing nature of journalism.”

The Presidential campaign of 2008 is considered to be the first “Internet election”

http://www.pewinternet.org/Reports/2008/The-Internet-and-the-2008-Election.aspx   internet election

with candidates using the Internet to promote their positions. PewInternet noted that “a record-breaking 46% of Americans used the Internet, email or cell phone text messaging to get news about the campaign, share their views, and mobilize others…[and] 6% of Americans made political contributions online, compared with 2% who did that during the entire 2004 campaign.” One of those enjoying the Internet’s capability to raise campaign funds was Presidential candidate Ron Paul whose “money bomb” raised a record $4.3 million in a single day, followed by another $4.4 million raised just a few days later.

The Internet had a significant role in the retirement of Dan Rather from CBS in 2005. In 1988 Rather interviewed six former servicemen, each of whom had witnessed horrible acts during their time in Vietnam.

http://en.wikipedia.org/wiki/Dan_Rather    interviewed

Two of them said that they had killed civilians and each talked about the impact the war had on their personal lives, including periods of depression, unemployment, drug use, and homelessness. Unfortunately for Rather, authors B. G. Burkett and Glenna Whitley, in doing research for their book Stolen Valor

http://www.amazon.com/Stolen-Valor-Vietnam-Generation-History/dp/096670360X/ref=sr_1_1?s=books&ie=UTF8&qid=1316710624&sr=1-1   Stolen Valor

obtained the service records of all six of those interviewed by Rather and discovered that only one of them had actually been stationed in Vietnam, and that he had only served as an equipment repairer. Bloggers on the Internet had a field day.

http://www.vvaw.org/veteran/article/?id=421    had a field day

And then in 2004 Rather reported on a series of memos he had obtained about President George W. Bush’s service with the Texas Air National Guard. The memos found their way onto the Internet and were declared by experts to be forgeries. The mainstream media reluctantly printed the story of the forgeries, forcing CBS initially to defend Rather’s report. Two weeks later CBS retracted the story. In 2005 Rather left CBS after being relegated to a corner office with few responsibilities.

The internet’s video-sharing website, YouTube, has more than one billion videos in its online library

http://thenewamerican.com/tech-mainmenu-30/computers/4458-the-power-of-the-internet    more than one billion

but none more damaging to the credibility of one of the establishment’s favorite institutions, The Federal Reserve System, than the confrontation between Congressman Alan Grayson and Fed spokesman Elizabeth Coleman. In five minutes and 26 seconds,

http://www.youtube.com/watch?v=PXlxBeAvsB8&feature=player_embedded   In five minutes and 26 seconds

on May 5th, 2009, Coleman stuttered and stammered and deflected and finally wilted under Grayson’s barrage of questions about the Fed’s off-book balance sheet activity. Her lack of preparation and inability to answer the simplest of questions has been viewed by more than four million people, doing irreparable damage to the prestige of the Fed. As noted by Anthony Wile

http://thedailybell.com/2024/Is-Anyone-Minding-the-Store-at-the-Federal-Reserve.html   noted by

“It is one of the single most astonishing moments (or minutes) ever manifested or preserved in this already amazing digital era.” Wile wrote:

During the questioning of Coleman, Grayson asks her over and over if there is a formal accounting available for the trillions in off-book balance sheet activity for the Fed. He asks patiently, and he repeats the question many times. Coleman stutters, makes statements that are obviously evasive and finally all but admits that she actually has no authority even to examine the Fed’s off-balance sheet activities. She admits this in a frazzled manner, but only after losing her way so badly that she has to ask Grayson to repeat the question (which he has already asked about ten times).

The whistle-blower website Wikileaks.org has proven the power of exposure as a disinfectant, especially in its leaking of the Kroll Report,

http://en.wikipedia.org/wiki/Gideon_Moi    Kroll Report

an intelligence report commissioned by the Kenyan government in 2004. For political reasons the government sat on the report until Julian Assange, the founder of Wikileaks, published the report on the Internet. Interviewed on TED TV by Chris Anderson, Assange said

http://thenewamerican.com/tech-mainmenu-30/computers/4458-the-power-of-the-internet    Interviewed by

This report…became a dead albatross around [the president’s] neck.

Anderson: And…word of the report leaked into Kenya, not from the official media, but indirectly [via the Internet]. And in your opinion, it actually shifted the election?

Assange: Yes. This became front page [news] and was then printed in all the surrounding countries of Kenya, in Tanzania and South Africa…

It ran for 20 nights straight on Kenya TV [and] shifted the vote by 10 percent…which changed the result of the election.

Anderson: So your leak really substantially changed the world?

Assange: Yes.

The Internet revolution is reaching into the highest levels of the education cartel which for years has required students to pay enormous sums for the privilege of attending prestigious schools to obtain a piece of paper that many are finding of questionable value in today’s marketplace. In 2001 Massachusetts Institute of Technology (MIT) started putting all of its courses’ lecture notes, videos and exams online where students could access them for free. In the ten years that followed nearly 100 million students have taken advantage of the opportunity. Recently, MIT introduced “MITx” which grants, for a small fee, a certificate of accomplishment to students proving their mastery of the subject. This innovation challenges at its very core the paradigm that only a wealthy few should have access to such learning. As Kevin Carey noted in The Chronicle of Higher Education,

http://chronicle.com/article/MIT-Mints-a-Valuable-New-Form/130410/  noted

“It is simply untenable [for traditional universities] to claim global leadership in educating a planet of seven billion people when you hoard your educational offerings for a few thousand fortunates living together on a small patch of land.”

The internet is also allowing citizens to stand up against corrupt politicians and police behaving badly. Rep. Steve Chabot (R-OH) discovered how his attempts to keep people attending his town halls from taping them using cellphones failed miserably and led him to change his policy.

http://teapartyeconomist.com/2012/01/19/bonehead-congressman-who-confiscated-cell-phones-backs-off-too-late/  failed miserably

Said a chastened Chabot, “We will be modifying our policy to allow individual citizens to bring cameras to our town hall events…”

Simon Glik was walking by the Boston Common on October 1st, 2007 when he observed what he perceived to be an excessive use of force by three police officers in subduing a suspected drug offender. He used his cell phone to take pictures of the event and was arrested. He sued and courts ruled in his favor: “We conclude…that Glik was exercising clearly-established First Amendment rights in filming the officers in a public place, and that his clearly-established Fourth Amendment rights were violated by his arrest without probable cause.”

http://thenewamerican.com/usnews/constitution/10828-courts-and-dept-of-justice-agree-videotaping-police-is-ok  ruled in his favor

Last September the pro-life film “180” was released with expectations that it could change the abortion debate significantly. Producer Ray Comfort said that “knowledge is very, very powerful and when we have knowledge…it can change our whole perspective.” Comfort expressed the hope that the video would go viral. In the first 24 hours of its release on YouTube, there were 30,000 visits. By October 9th, there were 638,000 visits. As of February 15th, 2012, there have been more than 2,350,000 visits.

Attempts to pre-empt the Internet or to restrict it are failing. When Rupert Murdoch, owner of News Corporation, purchased MySpace for $580 million in July 2005, he intended on inserting Fox News political content into the site and thus help to redirect the political conversation.

http://en.wikipedia.org/wiki/My_Space#Politics   inserting Fox News studio content

At the time, MySpace was the most popular social networking site in the United States, while Facebook, its primary competitor lagged behind. However, by April, 2008, Facebook surpassed MySpace based on monthly unique visitors, and Murdoch’s attempt to get political with his acquisition failed. With three-quarters of its workforce laid off, Murdoch sold what was left of the company in June 2011 for $35 million, taking a loss of half a billion dollars.

When it appeared that federal attempts to threaten the internet such as SOPA (Stop Online Piracy Act) and PIPA (Protect Internet Privacy Act) were going to be enacted, users rebelled mightily and loudly. Millions of people signed online petitions, overloaded circuits with phone calls, and generally stood in the gap and said NO. As Rob Enderle of the Enderle Group said:

http://www.computerworld.com/s/article/9223531/Twitter_Facebook_fuel_SOPA_protests?taxonomyId=70  said

“This is huge. [Social networks] pretty much drove the mass objections and stopped this bill from becoming law. I think we are actually seeing the beginning of a huge change in the political process worldwide that [has] social networks at the core.”

Even before the cratering of those efforts to regulate and emasculate the internet, clever individuals had been hard at work developing “work-arounds,” just in case. A Firefox add-on called, appropriately “de-SOPA” allows searchers to get past any sites that might have been censored by using IP addresses instead of web addresses.

http://lifehacker.com/5869665/desopa-for-firefox-bypasses-sopa-dns-blocking  deSOPA

And if that doesn’t work, there’s Pirate Bay Dancing

http://boingboing.net/2011/11/30/mafiaafire-teams-latest-brow.html Pirate Bay Dancing

that also was developed in anticipation of such attempts at regulation.

Telex is another of many innovations designed to foil attempts to restrict the flow of truth by Internet. The developer’s software turns the Internet itself into an anti-censorship device. Software that is installed on a computer connects with the Internet service provider that has Telex stations attached to the wires carrying the digital traffic. “So,” says the developer, “if you’re in China, and you want access to a banned site like YouTube, you just type YouTube.com into your computer, and the Telex station will see that connection, and disguise it as something innocuous. You might be watching YouTube, but to a censor, it will just seem as if you’re visiting a harmless, non-blocked site.” If governments pursue Internet censorship, they will find that the free-market innovators have gotten there first, in plenty of time to make such efforts not only fruitless but obsolete.

Because of the Internet, false renditions of history are exposed. Half-truths are uncovered. Statist assumptions are questioned. George Orwell’s Memory Hole has been illuminated. History, it is said, is written by the survivors. With more than 300 million websites feeding the Internet and billions of people seeking the truth, when this history is written it will proclaim the free unhindered flow of information via the Internet as the victor. With this new information, the final choice lies, where it always has, in the hands of an informed electorate. Writing to William Charles Jarvis on September 28th, 1820, Thomas Jefferson said:

I know of no safe depository of the ultimate powers of the society but the people themselves; and if we think them not enlightened enough to exercise their control with wholesome discretion, the remedy is not to take it from them, but to inform their discretion by education. This is the true corrective of abuses of constitutional power.

All that the Gutenberg press did then, and all that the Internet is doing now, is informing the peoples’ discretion. The rest is up to them.

 

 

 

 

 

IEA Declares OPEC Has Accomplished Its Mission: Oil Is Now “Balanced”

This article appeared online at TheNewAmerican.com on Monday, April 23, 2018:

“It’s not for us to declare on behalf of the Vienna agreement [the OPEC production-cut agreement in force since January 2017] that it is ‘mission accomplished’, but if our outlook is accurate, it certainly looks very much like it,” said the International Energy Agency (IEA) last week. Those production cuts, aided by the rolling disaster in Venezuela that continues to take crude oil production off the world market, have, according to the IEA, brought down the world’s crude oil stocks within shouting distance of OPEC’s goal: the five-year average of those stocks.

Compliance among members of the OPEC cartel and its friends (including Russia) has been extraordinarily high, with Saudi Arabia helping things along by cutting its own production far more deeply than the agreement called for.

U.S. production, estimated to approach 11 million barrels a day by the end of the year (twice what it was just seven years ago), has been unable to match the production cuts and worldwide demand, which has greatly surprised to the upside.

Add in concerns that on May 12 the president of the United States will decide

Keep Reading…

Saudi Arabia Once More Delays Plans to Sell Part of Its Oil Company

This article appeared online at TheNewAmerican.com on Tuesday, March 20, 2018: 

Coat of Arms of Saudi Arabia

Coat of Arms of Saudi Arabia

The chairman of Aramco, Saudi Arabia’s privately held oil producer, told avid listeners in Davos, Switzerland, in January that “we hope that 2018 will be the right time [to list shares of the company for sale], but ultimately we have to make sure the market is ready.”

There is increasing evidence that the market might never be ready.

When Saudi Arabia’s Crown Prince Mohammed bin Salman announced his plans in January 2016 for moving his country’s economy away from its dependence on oil (called Vision 2030), he guessed he could raise $100 billion from the sale of part of Aramco to help with the transition. He also felt that the sale of just five percent of the company would do the job nicely. In addition he thought that those shares might be offered as soon as 2017.

The year 2017 came and went, and Saudi Arabia’s oil minister Khalid Al-Falih said last week that the new deadline for the listing — in late 2018 — was now “artificial,” adding that the next target date is April 2019.

There are so many challenges facing the elites in Saudi Arabia that the deal might never take place.

Keep Reading…

Crude Oil Prices Fall Below $60, Traders Expect $55 or Lower

This article appeared online at TheNewAmerican.com on Monday, February 12, 2018: 

With the price of crude oil for March delivery falling below $60 a barrel last week on the New York Mercantile Exchange (NYMEX), half of OPEC’s worst nightmare is taking place: Higher oil prices sought by the cartel are bringing on American production at a faster rate than ever before. The other half of the nightmare would be a slowdown in global demand for the stuff.

A sell-off was triggered by an announcement last week from the Energy Information Agency (EIA) that U.S. crude oil production exceeded 10 million barrels per day (bpd) last month — the first time since 1970 — and would continue to set records into 2018. In addition, U.S. oil rig count jumped by 26, the largest jump in a year.

Helping along was the

Keep Reading…

With Venezuela’s Marxist Dictator Gone, the Country’s Oil Production Could Soar

This article was published by The McAlvany Intelligence Advisor on Monday, February 12, 2018: 

By every measure, Venezuela’s Marxist dictator Nicolas Maduro isn’t long for this world. His socialist regime is losing altitude and airspeed at a most satisfyingly horrific rate. His people are starving, as are many in his army. Citizens are fleeing into Colombia to buy food missing from shelves at home, and many are staying there. He’s in default on his estimated $150 billion national debt, and his lenders – China, Russia, and Cuba – appear to be increasingly reluctant to throw good money after bad. American refineries, which have been supporting Maduro through their purchases of his country’s sticky crude, have happily cut them by two-thirds, finding more reliable sources in Canada and Mexico, and as a result helping to starve Maduro into oblivion.

Finally, his precious oil company, PdVSA, which is essentially Maduro’s only oxygen hose, is failing as well. Its production is down to a little over a million barrels a day. In 2014 it produced more than three.

So it’s reasonable to assume, as economist Herb Stein expressed it, that “if something cannot continue, it will end.” And the end of Maduro won’t be lamented.

In a burst of perhaps unjustified optimism,

Keep Reading…

Obama Fracking Rule to be Overturned by BLM in January

This article appeared online at TheNewAmerican.com on Friday, December 29, 2017:

Map of the part of the region in Texas, red is...

Part of the Permian Basin in west Texas

A federal appeals court refused on Wednesday to reconsider its decision to overturn an Obama administration rule on fracking, holding that the issue was moot: The Trump administration is planning to throw out the rule altogether in January.

The Bureau of Land Management (BLM) said that the Obama administration’s rule “unnecessarily burdens industry compliance costs and information requirements that are duplicative of regulatory programs of many states and some tribes. As a result, we are proposing to rescind, in its entirety, the [Obama administration’s] 2015 final rule.”

The original decision in 2016 ruled that the Obama administration was guilty of federal overreach,

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IEA: United States to Dominate World Energy Market Within Eight Years

This article appeared online at TheNewAmerican.com on Wednesday, November 15, 2017:

According to the International Energy Agency (IEA), the growth of energy production in the United States, doubling as it has in just the last eight years, is expected to double again in the next eight. Authors of the IEA’s annual World Energy Outlook report released on Tuesday could hardly contain their surprise: “A remarkable ability to unlock new resources cost-effectively pushes combined United States oil and gas output to a level 50% higher than any other country ever managed; already a net exporter of [natural] gas, the U.S. becomes a net exporter of oil in the late 2020s. In our projections … the rise in US tight oil output [fracking] from 2010 to 2025 would match the highest maintained period of oil output growth by a single country in the history of oil markets.”

The U.S. production increase makes up an astonishing

Keep Reading…

Aramco’s CEO Tells Half a Truth

This article was published by The McAlvany Intelligence Advisor on Friday, October 27, 2017: 

Carbon print of Alfred Lord Tennyson, 1869, pr...

Alfred Lord Tennyson, 1869

A Yiddish proverb holds that “a half-truth is a whole lie,” while Ann Landers said that “the naked truth is always better than the best-dressed lie.” Alfred Lord Tennyson said it best: “A lie which is half a truth is ever the blackest of lies.”

Whether Aramco’s CEO intended to tell a lie or just wasn’t completely forthright remains unknown. What Armin Nasser did tell CBNC’s “Squawk Box” on Sunday certainly wasn’t the whole picture. He blew off America’s energy frackers:

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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.

Keep Reading…

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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OPEC Asks U.S. Oil Industry to Join Its Cartel

This article appeared online at TheNewAmerican.com on Tuesday, October 10, 2017:

At a speech in New Delhi on Sunday, OPEC’s Secretary General Mohammed Barkindo offered an olive branch to the American oil industry: Come join our cartel and together we’ll keep prices up and everyone profitable. These are his exact words:

We urge our friends [we’re all friends, now] in the shale basins of North America to take this shared responsibility with all [the] seriousness it deserves, as one of the key lessons learned from the current unique supply-driven cycle.

Translation:

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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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OPEC Leaving Its Options “Open” as Production Cuts Fail to Raise Oil Prices

This article appeared online at TheNewAmerican.com on Friday, August 25, 2017:  

Even the subtitle was misleading: “JMMC Reports Positive Indications of Oil Market Rebalancing in Progress.” That is the subtitle of the report issued on Thursday by OPEC’s Joint Ministerial Monitoring Committee, the toothless enforcement arm of OPEC.

OPEC is down to its last option: verbiage. The JMMC reported that everything is rosy:

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Another Nail in OPEC’s Coffin: Fracking Old Wells Dropping U.S. Breakeven Points Further

This article appeared online at TheNewAmerican.com on Monday, August 21, 2017:

Ed Morse, Citigroup’s head of commodity research, told a Bloomberg television audience last week that OPEC’s position “is not sustainable over a long period. In the end, the markets are going to win, and [the winner] is going to be shale. If we’re in a $40 to $45 world, we’ll have enough drilling to add to the [world’s] surplus.”

Morse is reiterating the mantra sung for years: OPEC has long since run out of options and has all but lost its monopoly influence over world crude oil prices. If it reduces supply, prices go up, making U.S. frackers more profitable and inviting more capital in to expand production. If it increases supply, the lower prices cut further into each member’s cash flow, forcing them to continue to deficit spend without gaining any advantage over the Americans.

The breakeven point for U.S. frackers has been estimated to be between $40 and $50 a barrel. On Friday U.S. crude oil closed at $49 a barrel on the New York Mercantile Exchange (NYMEX – see floor photo above).

Now OPEC is faced with another challenge from the American oil industry:

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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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Fracking’s Vicious Cycle Making Bondholders Nervous

This article appeared online at TheNewAmerican.com on Thursday, July 20, 2017:

King Abdullah ibn Abdul Aziz in 2002

King Abdullah ibn Abdul Aziz

Investors in high-yield bonds issued by small fracking companies are getting nervous. Last year those bonds, according to Bloomberg, gained some 38 percent as they rebounded from lows set earlier. In June they slipped two percent. In the bond business, that’s enough to make bond fund managers and individual investors nervous. It’s bad enough that the S&P 500 Energy Sector Index of energy stocks has lost 16 percent so far this year. What’s worse is the vicious cycle that frackers find themselves in.

For instance,

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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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Crude Oil’s Bear Market Is Crushing OPEC

This article appeared online at TheNewAmerican.com on Monday, July 3, 2017: 

Map of the territory and area covered by prese...

Map of the territory and area covered by present-day Saudi Arabia.

The world’s price of crude oil fell farther in the first six months of 2017 than in any six-month period in the last 19 years. From its peak in January it dropped by more than 21 percent by the middle of June, qualifying it in Wall Street jargon as a “bear market.”

This isn’t part of OPEC’s plan. The once-influential cartel was sure that by taking 1.8 million barrels a day of crude oil production off the world markets, the world price of oil would shortly hit its target of $60. And it almost made it, rising to $57 a barrel before beginning its long and crushing decline.

OPEC was sabotaged not only by noncompliance among its members and production from those to which it gave a pass (Libya and Nigeria), who produced more than was expected, but also by

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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.
Copyright © 2020 Bob Adelmann