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Oil shortage a myth, says industry insider June 9, 2008

Posted by tkcollier in Economy & Business.
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Oil shortage a myth, says industry insider – Climate Change, Environment – The Independent
Proven oil reserves are likely to be far larger than reported because of the way the capacity of oilfields is estimated and how those estimates are added to form the proven reserves of a company or a country. Companies add the estimated capacity of oil fields in a simple arithmetic manner to get proven oil reserves. This gives a deliberately conservative total deemed suitable for shareholders who do not want proven reserves hyped, Dr Pike said.

However, mathematically it is more accurate to add the proven oil capacity of individual fields in a probabilistic manner based on the bell-shaped statistical curve used to estimate the proven, probable and possible reserves of each field. This way, the final capacity is typically more than twice that of simple, arithmetic addition, Dr Pike said. “The same also goes for natural gas because these fields are being estimated in much the same way. The world is understating the environmental challenge and appears unprepared for the difficult compromises that will have to be made.” Click on image to enlarge

Jeremy Leggett, author of Half Gone, a book on peak oil, is not convinced that Dr Pike is right. “The flow rates from the existing projects are the key. Capacity coming on stream falls fast beyond 2011,” Dr Leggett said. “On top of that, if the big old fields begin collapsing, the descent in supply will hit the world very hard.”


1. Bobby Hawk - March 20, 2011

The oil reserves for the US are woefully incorrect. The same is true for Russia. The battle ground in this game is played between several opponents with the prize being the owner of the world currency. The major players are Russia. the EU, China, Japan, and the USA.

The USA holds the crown of word currency currently, but it has been under attack for some time now. The events of 2008 were an effort to undermine the stronghold the US has on world currency. Domination of world currency is mostly about energy and other commodities which people must have. Where gold is a commodity that is useful in some industries and its is a visual representation of wealth, it is not a necessity for daily life. Food, water, shelter, and energy are the commodities of life which are required. All currencies are based on the commodities which back up these 4 basic components. The more natural resources a country has of all these four, the more wealthy its currency becomes.

The final piece in this puzzle is the political and financial stability of a country. A country who is not in debt and has a stable political climate (specifically not based on Marx & Engels doctrine), is more likely to become the holder of the title world currency. An unstable country politically which holds vast amounts of debt, does not have the financial clout to hold on to the position of world currency.

Why is this position important? Because every financial transaction in the world becomes the property of the nation who holds the possession of World currency. All loans and all interests are made and paid in their currency. Yes other countries have currency, however when they go to purchase commodities on the world market (oil, food, raw materials etc) then they must trade in the accepted world currency. Currently that is US dollars. However, the Russians are working over time to make that currency the Ruble. Think what happens the minute Saudi becomes unstable and the EU must get its oil from Russia. The Russians will refuse to trade in US dollars and then the change over to Rubles as the world currency starts.

Americans have always been wealthy and spoiled, they will not know what to do when the become a the poorest third world country in the world. This level of instability in the USA is occurring today, right now. With America several trillion dollars in debt, all that is needed is the change of oil trade from US dollars to another currency and the US dollar becomes nearly worthless over night. Yes it will have value in other commodities, but it will never regain it ground as the world currency again, once oil is no longer traded in US dollars. The dollar will fall very quickly by 50% to 70% of its current value. Investments in the marked will loose by the same volume. The only stable investments which will not be effected by the fall of the dollar are commodities (raw materials including bullion, and food). Imagine gasoline costing 50% to 70% more than todays $3.35/gal ($5 – $6/gal). Now imagine that happening overnight.

Now you can understand why the president (Obama) went to Brazil. He is attempting to head off the inevitable. He was so inexperienced on the world stage because he was so ingrained in the doctrine of Marx and Engels that the Russians found him an easy mark. The Russians played president Obama, by keeping him involved in the socialists utopian plan of globalization, while keeping him engaged in two wars and now a third in Libya. They knew president Obama had a huge ego problem and the Russians have taken advantage of that fault. In the end All Americans will pay dearly for the ego of Obama. The smart ones have already moved into foreign currencies, bullion and commodities. The remainder who were not wise and the innocent who trusted president Obama, will undergo a tragic loss which will dwarf the stock market crash of the 1920s. Those not prepared will see their net worth cut by at least 50% with numbers ranging as high as 70%. Home values will plummet, businesses go bankrupt and the dollar will experience hyperinflation. The cost of a single loaf of bread will be over $60 USD. All because of one mans ego and his belief in the Marx – Engels doctrine (which the Russians taught him). The Russians are betting on it!

2. @sidileak.com #SiteStats | News, Views and Reviews: Sid Harth - June 18, 2011

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