ABIOTIC OIL, PEAK OIL, AND SAUDI ARABIA

Over the past few weeks I've been drawing attention to the growing crisis facing Saudi Arabia, a crisis exacerbated in part by Russia's intervention in Syria. Regular readers will recall that I even blogged about recent Saudi overtures to Russia, in some versions, even holding out a membership in OPEC to that country.

Russia is in a unique position regarding the entire global petroleum industry, for it is the one country that self-consciously, and deliberately, decided to scientifically test the idea that hydrocarbons were "fossil fuels", a hypothesis that came up wanting during the period that the Soviet Union was investigating and testing this hypothesis.

All this brings us to a very intriguing article shared by Ms. M.W., from Mr. F. William Engdahl, on the origins of the Soviet research, and its geopolitical implications:

Oh Oil, where is thy peak?

COnsider just the discovery of new energy fields summarized by Mr. Engdahl:

In 2006 Brazil’s Petrobras made the largest offshore oil discovery of the last 30 years, holding at least 8 billion barrels of oil in the Santos Basin 250 kilometers from Rio de Janiero. Then-President Lula da Silva proclaimed it would give the “second independence” for Brazil, that from Western oil imports. In 2008 nearby Petrobras, a state company, discovered an equally large natural gas field called Jupiter near their Santos oil discovery. Under Lula’s presidency, the Parliament passed measures to insure oil development would remain in Brazilian hands under Petrobras and not in those of the American and British or other foreign oil majors. In May 2013 after Lula retired and was succeeded by Dilma Rousseff as President, US Vice President Joe Biden flew to Brazil to meet with her and the heads of Petrobras. According to Brazilian sources, Biden demanded Rousseff remove the laws that kept American oil majors from controlling the huge oil and gas finds. She politely declined and soon after she was hit with a major US Color Revolution destabilization that continues to this day, not surprising, with a scandal around Petrobras at the center.

More recently, Iceland, recovering from her banking crisis, began seriously looking offshore for oil and gas in the Jan Mayen Ridge north of the Arctic Circle in 2012. The geophysics are the same as offshore North Sea and one Icelandic former senior government official told me during a visit some five years ago that a private geological survey indicated Iceland could be a new Norway. According to the US Geological Survey, the Arctic could hold 90 billion barrels of oil, most of which is untapped. China made Iceland a key partner, and the two signed a free-trade agreement in 2013 after China’s CNOOC signed an offshore joint venture in 2012 to explore the offshore.

In April 2015 the energy exploration firm UK Oil & Gas Investments announced it had drilled near Gatwick Airport and found what they estimated could be up to 100 billion barrels of new oil. By comparison the entire North Sea has yielded some 45 billion barrels in 40 years. As well in May, UK oil company Rockhopper announced a new oil discovery in the disputed waters of the Falkland Islands offshore of Argentina believed to contain up to one billion barrels of oil.

Now in August, 2015 the Italian oil company ENI announced discovery of a supergiant gas field in the Egyptian offshore, the largest ever found in the Mediterranean Sea, larger than Israel’s Leviathan. The company announced the field could hold a potential of 30 trillion cubic feet of lean gas in place covering an area of about 100 square kilometres. Zohr is the largest gas discovery ever made in Egypt and in the Mediterranean Sea.

There are huge undeveloped oil and gas reserves in the Caribbean, the area of an impact crater that made numerous fissures and where three active tectonic plates come together and part. Haiti is one such region, as is Cuba. In May the Cuban government released a study that estimated Cuba’s offshore territorial waters held some 20 billion barrels of oil. Russia’s oil subsidiary, Gazprom Neft, has already invested in one section in Cuban waters, and during Russian President Putin’s July, 2014 visit to Havana in which Russia cancelled 90% of Cuban Soviet-era debt worth some $32 billion, Igor Sechin, the CEO of Russia’s state-owned Rosneft, the world’s largest oil company, signed an agreement with Cupet, the Cuban state oil company, to jointly explore the basin off Cuba’s northeast coast. That Russian participation in the huge Cuban oil search might explain the sudden rush of the Obama Administration to “warm up” relations with Cuba.

In addition to this, however, there's the Cold War era Soviet research into the whole notion of "fossil fuels":

In the 1950s a group of Soviet scientists was tasked with making the USSR self-sufficient in oil and gas as the Cold War heated up. The first step in their research was to critically investigate all known scientific literature on origins of hydrocarbons. As they looked closely at the so-called fossil fuel theory of oil, they were amazed how unscientific it was. One physicist estimated that for the huge oil that has come out of one giant well, Ghawar, in Saudi Arabia, it would require a block of dead dinosaurs, assuming 100% conversion of meat and bone to oil, that would reach 19 miles wide, deep and high. They soon looked for other explanations for the birth of oil.

They made exhaustive tests in the deep-earth research labs in Moscow of the Soviet military. They developed the brilliant hypothesis that oil was constantly being created deep in the bowels of the Earth below the mantle. It pushes upward towards the surface passing through beds of various elements such as ferrite. They did repeated laboratory experiments producing hydrocarbons under tempetrature and pressure imitating that in the mantle. These migration channels, as the Soviet scientists termed them, were fissures in the mantle caused over millions of years under the expanding of the earth and forced by the enormous temperatures and pressures inside the mantle. The path the initial methane gas takes upwards towards the surface determines whether it emerges and collects as oil or as gas, as coal, as bitumen as in Canada’s Athabasca Tar Sands, or even as diamonds which are also hydrocarbons. The Russian and Ukrainian scientists also discovered, not surprisingly, that every giant oilfield was “self-replentishing,” that is new oil or gas is being constantly pushed up from inside the mantle via the faults or migration channels to replace oil withdrawn. Old oilwells across Russia that were pumped far beyond their natural full rate during the end of the Soviet era when maximum production was considered highest priority, were then shut, considered exhausted. Twenty years later, according to Russian geophysicists I have spoken with, those “depleted” wells are being reopened and, lo and behold, completely refilled with new oil.

So what prevents these resources from being developed? Recall that just a few years ago, as oil prices were high, the USA had expanded its oil production in North Dakota, producing jobs, and actually for a period becoming an equal producer of oil with one of the world's most loathsome regimes, whose wealthy princes hypocitically smoke cigars and imbibe alcohol, while simultaneously supporting a medieval regime of head-chopping, limb-amputating, and even crucifixion to maintain its grip on power at tome. The result has been geopolitically and financially predictable, according to Mr. Engdahl::

Today a geopolitical decision by Saudi Arabia to wipe out the market-disturbing recent emergence of the United States as world’s largest oil producer owing to the major increase in shale oil production, has temporarily collapsed world oil prices from over $100 a barrel in July 2014 to around $43 today in the US market. That is leading to a dramatic cut-back in oil exploration around the world. In a fair world, oil or gas should be available at affordable prices to every nation to serve its own energy requirements and not the monopoly of a tiny cartel of British or American companies. Good to know is the fact that the oil and gas are there in super-abundance that we need not freeze in the dark or turn to windmills until the time mankind develops completely different forms of energy that are clean and earth-friendly. Wars to control oil or gas would become silly nonsense.

As I have blogged previously, the regime in Riyadh is under severe internal and external pressures, oil being its one and only viable export to the world; it has absolutely nothing else - absolutely nothing - else to offer. Russia does not need the Middle East's oil or gas, niether from Riyadh or Tehran. China might, but one can only assume that China has been long aware of the Soviet era research, and is similarly exploring for its own energy supplies.

Additionally, recent energy advances - think only of our recent articles here on the awarding of a USA patent to Dr. Andrea Rossi and his cold fusion technique - ultimately spell the end of the oil-based hydrocarbon energy systems that the world has lived with(or under) for the last century and more. Even the mullahs in Tehran understand this long term implication. So another alternative for combatting Islamicist terrorism presents itself: cut off its source of funding, by developing those energy resources.  There's no need to be dependent upon Saudi oil, and additionally, this might afford the West a means to deal with China, by becoming suppliers to its growing energy needs. Imagine, for a high-octane-speculation moment, what a kind of BRICSA equivalent to OPEC - with the UK, Brazil, Iceland, the USA, Saudi membership prohibitted - might accomplish.

See you on the flip side...

21 thoughts on “ABIOTIC OIL, PEAK OIL, AND SAUDI ARABIA”

  1. The Saudis aren’t stupid, they’re sitting on a mound of US dollars and are quietly behind the scenes buying up the best ‘super soils’ farming land around the globe and massive tracts of cattle farming land (Serbia’s Vojvodina area, Ukraine’s famous black soil and Australia’s cattle ranches just to name a few).

    Funnily my friend actually shot a wild boar on a road on James Packer’s ranch (which he sold to the Saudis) and was in the process of gutting it when a Saudi prince rolled up to inspect the property. Let’s just say the Australian billionaire wasn’t too happy.

  2. This is a hopeful twist revisited. This all sounds more plausible and tenable than previous times I and others have considered these likelihoods. Possible concerns through all this is the desperate measures Mr Global will go to while suffering through such humongous paradigm change.

    Please take looks at electric universe, Velikovsky, Thunderbolts.info,… points on just this subject. Ancient myths from diverse sources, cultures and locations all over Earth recounted petrol raining down during what electric universe adherents speculate were electric interplanetary interactions as Mars, Venus, Saturn,… came too close for Earth’s comfort. The resultant chemical interactions from interplanetary electric discharges are capable of producing infinitely more than is currently noted on Earth.

    Electric Universe theory also helps explain more simply the expanding Earth theory. And the merits of petro-resources being produced from Earth’s inside out also fit in well with EU theory.

    So as we come to realize and document that the oligarchs, robber-barrons, monopolist, covert fascists,…. have in fact held back science and resources from the rest of society in order to hurt, herd and control the rest of society, how are we to shake off such folk who block so many and so long from knowledge, wealth, resources and life?

    1. And incidently, these scenarios do explain infinitely better the ongoing rush to stupidity by Mr Global and the Cabal exemplified in belligerently destructrive stupid “let them eat cake moments”:

      constant blatant warcrims from obamabushblair et al,
      9/11,
      BP the Gulf of Mexico,
      pedophilic fascist dicators in religions, govts and business,
      Fukushima,
      Tar/sands oil train bombs,
      GMO’s,
      dying bees,
      geoengineering,
      financial armageddon
      transhumanism,…

      These are all critically stupid moments (and just a short list) of human history that when looked at as a whole from a longer distance make us all go more than a little bit, hmmmmmm

      Pattern recognition is one part of intelligence. Being able to hold a number of possible ideas in mind simultaneous to evaluating their probability of accurately representing reality is another crucial part of intelligence.

      Somewhere in here recognizing patterns and holding open our mind to all possibilities, one has to recognize that some levels of stupidity are not sustainable without some careful concerted effort. Such efforts reflect tactics, strategies and goals of those who work so hard in such directions.

      1. The source of this historic pattern is the beast nature that has been embraced by these global leaders. They are not our brightest nor our strongest; they are our most ruthless and savage. The greatest threat to our worst, the beast elite, is the awakening and embracement of humanities potential higher self. The rule of wisdom, fairness, and freedom of knowledge strips them of all their power and prestige and creates a world in which they can not dominate. One third of humanity are beasts, one third are content to being little more than monkeys, one third strives for the higher potential. The beasts only way to keep their rule is to constantly distract, corrupt, enslave, or kill those who seek to lift the monkeys and themselves up to their highest potential. Their methods are still little more than those of an unimaginative and dim witted bully in a school yard but when taken to the level of organization we call government leads to the never ending, sad and pathetic ever repeating horror show we call human history. Sadly these beasts have dumbed down and retarded the human potential so badly through their centuries of brutal domestication that it may now be impossible for mankind to fulfill his proper destiny of reaching his full potential. Only a global catastrophy that wipes out the vast majority of these unnatural domesticated mental and physical weaklings has a chance of getting the human race back on its proper path I fear. And the most mentally ill are our elite families. Our worst lunatics run and created this planetary asylum of mentally and physically unfit beings masquerading around as mankind. But the vast majority are no longer the proper God created version of mankind any longer, they are domesticated and dumbed down shadows of their former and proper selves. The Creator has already begun to correct this, look at the planetary rumblings and increasing asteroids as well as the conscious re-awakening the beasts are desperately trying to suppress.

  3. Oil has never been in short supply. It has always been artificially restricted. In the 1920’s the major oil companies drew a line around Iraq and agreed that nobody would find oil there. They didn’t want to kill the goose laying the golden eggs.

    One by one they will try and “allow” these new finds to be developed with massive cost overruns and delays naturally. They aren’t dumb. The Saudis did the price drop for several reasons. Most of the recent discoveries will be uneconomic at $50 USD/Barrel and they just couldn’t allow any more finds to be made. There are fields that rival theirs in cost and they didn’t want someone “accidentally” finding them. Most exploration is drying up at these prices as they planned.

    The supposed offer to Russia to join OPEC is an old one. Join and limit your share or we drop the price drastically. The problem is that Russia devalued their currency so they will be profitable at these levels and lower. Russia can also last longer than Saudi Arabia with low prices.

    China has so many irons in the fire right now I just have to think one will make it. LFTR? Fusion? LENR? Or something we’ve never heard of? Who knows but once they do they’ll have a ready market to replace their own and mass produce and export to everyone else. BRICSA on steroids! Loan the money from their own development bank at reasonable rates, sell them the power stations and make money coming and going.

  4. It is ironic that the oil industry is discovering what farmers learned long ago: For maximum sustained ‘crop’, rotate your planting. Let any given field lie fallow for a time, rather than planting every year. The ‘greening’ of oil… (grin)

  5. Confirmation: The Alaskan ‘Prudo Bay’ oil fields were predicted, in 1977, to last for 15 years. They are producing as much oil/natural gas today as they were in 1977.

  6. When the Rockefeller Trust said they were jettisoning their oil holdings. Something was up. I do believe LENR / Cold Fusion will go head to head with the new oil block. However, I can think of nothing better to fight off the new Ice Age, than petroleum, especially, in Russia. It will be a while before OU / LENR / Cold Fusion can be deployed. I’m sure the our climate weapons and space based assets will take full advantage to drive the change in their direction. Support the change that supports you. Even if it hurts.

  7. Where to begin Ptolemy-Geocentric Universe Malthus-Overpopulation Global Warming-Cooling Big Bang-Big Crunch. This list goes on of what the latest fantasies are being pimped by out oligarchs to cling to power. If we believe in plate tectonics the continental plates would need a lubricate to accomplish this. It’s interesting it’s the Russians who are doing real science instead passing off dreams and illusions as science. Though they have fallen to their own delusion witness Lysenko disaster in Soviet agriculture.

  8. Just as Diamond Are Forever 7 plentiful; it is the capitalists, aligned with State apparatuses, that are manufacturing monopolies. At the top of this fertilized manured-heap of the 1% fixed monopolies – is the MONEY. Next, a close-by-smell second is the petroleum-based-economy.
    All purposed.
    All Manufactured!
    Like the news.
    All is perception. And it’s managed by those who love you.
    After all, they’re doing this for your own good.
    The 1% will tell you, in all their combined sincere “truthiness”, it’s not at all for the love of money.

  9. It is also interesting that the Soviet research seems to indicate that there may be some credence to the expanding earth theory. If one examines the age of the rock to either side of the deep ocean faults, the oldest rock is farther away from the faults and the youngest rock is at the fault edges. The fracture lines in the rock seem to indicate that the rock flows away from these faults as it is created. The creation of new gas/oil would also help explain that expansion.
    The meme of the scarcity of gas/oil is an illusion created by the oil barons to justify their raising the prices, and the rape of underdeveloped countries. How long will it be before the rest of us finally understand that everything the elite would have us believe is a lie based on compromised/controlled science.

    1. Geologists have come to the conclusion that all ‘earth’ created from the magma at those deep ocean faults is balanced by the subduction of old ‘earth’ at other faults. Just a conveyor belt.

      Your comment does raise the question as to whether this 100% ‘balancing’ is actually true, or really is somewhat less than 100%. Thus, leading to the ‘expanding Earth’…

      1. These same geologists also believe oil comes from deposits of dinosaurs and ancient ferns. Sure, I’ll buy that…

        You can strip out all the thin-crust ocean beds, none of which are much older than 300 million years or so, and the ancient, 5-mile-thick continental plates fit together perfectly like the pieces an orange rind — while the earth today is now comparatively the size of a honeydew melon.

        Then of course you hve the problem of just how the brontosauruses and their ilk — reptiles larger than a house — could actually lift their necks, let alone walk, let alone pump any blood to their pea-brains found some 6-9 meters from their hearts, without a significantly reduced gravity.

        Oh, and don’t forget Carboniferous dragonflies with 27-inch wingspans, larger than trash-can lids.

        Yeah, those expanding earthers are looney! But nonetheless we know for a fact that those eagle-sized dragonflies are the source of our West Texas crude…

        Sure, I’ll buy that! It all sounds so logical! (As we all know, simple logic has nothing to do with it; they will go to any lengths to support the satus quo narrative in the face of the stunningly obvious.)

        1. basta, I was not refuting WalkingDead’s comment. I had just had a new way of looking at things lodge in my mind. My first paragraph was the ‘old school’; my second paragraph was the new possibility.

          I, too, have wondered about the ‘downsizing’ of virtually every species from ancient times to today. Various ‘conventional’ theories try to account for this, but somehow feel lacking. Lesser gravity would be one way of accounting for this. Many SF authors have noted the flora and fauna of heavy-gravity worlds would be squat and compact. (The reverse for low-gravity worlds.)

          For the “Carboniferous dragonflies with 27-inch wingspans” to fly, either the atmospheric pressure had to be much higher or the gravity lower. Simple physics. Intriguing…

          1. More intriguing than we can guess. The whole idea of evolution was pooched up by Darwin to support his social evolutionary genocidal cousin Galton. Their journals and letters to each other (bit of an odd crush these two had while not marrying their other cousins) play it out plainly. John Taylor Gatto dug through all this awhile ago.

            Galton invented the term eugenics. Plato was all about it. Galton and Darwin gave it much more recent and much more palatable affect for public consumption – or non-consumption as the case was. Galton and Darwin discussed how humans had 57 races (origin of Heinz 57?) and that the top two or so races were evolving while the rest were here to serve the top 2 or so. The bottom few races were so backward as to require thinning at the least and much more likely, extermination. I and most I talk with guess Africans got the bottom of the list. Africa’s down there.

            The identity of top and bottom races is telling of the history and goals and strategies and tactics of the day and the Wedgewood wealth these spoiled brat “polymaths” of their Gates/Ford/Rockefeller/,…. trust fund babies came from. No wonder they married only within their own families. Any other family trees we know of look as twisted?

            So did anyone guess the Irish at the bottom (slated for extermination) and England and Germany at the top?

            So give it some thought. Anyone here ever see any convincing evidence of evolution? Not similarities. Not genes here nor there. Serious signs of evolution. A species visibly changing into another. Oh yeh. It takes too long. No way to prove or disprove. From most points in science, such unprovable beliefs are termed religions, not theories.

            There are much more convincing, much simpler and much more testable theories on the origin of species et al. A random lightning strike on some puddle of inanimate goo that suddenly becomes a life in ridiculously simple form that just as suddenly (give or take a few million years) becomes a more complex life form?

            Get real. Lightning, electricity, plasma, sound, light, radiation is all frequency. Frequency organizes everything. Evolution (if such development can even be called that) is probably more likely to happen infinitely faster. And to have probably developed into intelligent life on this and/or other planets faster. And often. And almost as often to have fallen apart completely to be restarted again.

          2. Ok obviously I can rant a bit and have plenty more theory to lay out regarding life the universe and everything. The point of all that was simply to note that everything we were taught in school has so far uniformly turned out to be tripe. The main value of such tripe so far has turned out to be to give us a backdrop for comparing much better ideas against.

            So now it’s far easier for me to be open to ideas I hadn’t had the luck to imagine nor to have read about than it is for me to waste my time considering junk we’re still having foisted on us.

            And far more interesting to see who can help us along our way to more useful and more accurate accountings. Dr Farrell is so far consistent on considering patterns and motives in such paradigm changes. More and more it’s sounding like BRICS are presenting an alternative to the Rothschild matrix we were raised in. Is anyone else getting that here?

      2. hi goshawks,

        Sorry if you thought I was mocking in your direction! Not at all, I was just pointing out with a few simple examples the validity of expanding earth theory. I too had caught that subtle aside that WalkingDead had initially remarked upon, and was just having some fun showing how insane the official narrative actually is.

        1. Thanks, basta. The internet is not the best for figuring out irony, sarcasm, etc.

          On the expanding earth meme: Astrophysicists explain the expansion of the universe as the literal growth of SpaceTime within a given area. However, they counteract this ‘universalness’ within mass-containing bodies, citing the attraction of gravity as offsetting this ‘growth’. What if this were not the case? (Or only partially-offsetting the expansion?) Would this be a cornerstone for ‘expanding earth’ as a basis in fact?

  10. “BRICSA equivalent to OPEC – with the UK, Brazil, Iceland, the USA, Saudi membership prohibited –“
    I don’t understand, why would Brazil, a member of BRICSA be included in the prohibited list?

    1. My ‘take’, based on Joseph’s citing of Engdahl’s article, would have the phrase read:

      “BRICSA equivalent to OPEC – with the UK, Brazil, Iceland, and the USA – and Saudi membership prohibited“

  11. That the dinosaurs are the source of oil and natural gas is right up there with Santa Claus and the Tooth Fairy in believability. The mountain of garbage the system churns out as conventional wisdom is really breathtaking in its stupidity and audacity.

    And Saudi Arabia’s days are clearly numbered. They’re being put in play and will eventually be thrown under the bus like all the rest of them that have gone before. With friends like the Cabal, who needs enemies?

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