The End of the Oil Age?

Petroleum and Crude Oil – the Future of Oil Production

DW (2019) – only online until April 17th

Film Review

This documentary analyzes the long term economic viability of the petroleum industry, in view of climate change, increasing competition from cheap renewable energy and shifting geopolitical allegiances.

It begins with an examination of the 2014 collapse in oil prices – with the cost of a barrel of oil dropping by over 70% between June 2014 and January 2016. Oil bottomed out at $26 a barrel in February 2016.

The filmmakers explore a number of factors keeping the oil price above $100 a barrel prior to 2014. Speculation in oil futures by big banks such as Goldman Sachs and Morgan Stanley seems to be the main one.

These high oil prices made the fracking boom possible. Fracking technology, whereby trapped oil and gas reserves are released by fracturing bedrock, is an extremely expensive technology. According to industry analysts, fracking is only financially viable with oil prices above $70 a barrel.

The fracking industry was a great boon to the US petroleum industry, enabling it to export oil and liquified natural gas (LNG) for the first time in decades.

The filmmakers point to two main reasons for the 2014 collapse in oil prices. The first was reduced oil demand (due to global economic slowdown) popping the speculative bubble created by the big banks. The second was Saudi Arabia’s attempt to destroy the US fracking industry by flooding the global market with oil.

This scheme seems to have backfired. While numerous small fracking operations went bust, the major oil companies had sufficient financial resources to continue fracking at a loss.

The low oil prices probably hurt Saudi Arabia more than the US, as the Saudis are extremely dependent on oil revenues to finance their national budget.

In 2017, Saudi Arabia and other OPEC* countries reached out to Russia to form OPEC Plus. The latter agreed to limit oil production to stabilize prices. The Saudi oil ministry fully expects Kazakhstan and other former Soviet republics will also join OPEC Plus.

Meanwhile oil producing countries (except for the US under Trump) have learned an important lesson from the 2014 price shock. Both Norway (the world’s largest oil/gas producer) and Saudi Arabia are rapidly diversifying their energy industries to protect themselves from future price volatility. Most industry analysts expect other countries to follow suit. At present China, the world’s largest oil importer, is also the largest investor in renewables. This, in turn, signals a significant reduction in their future oil dependency.

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*Organization of Oil Exporting Countries – current members include Algeria, Angola, Austria, Cameroon, Congo, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia (the de factor leader), Syria, United Arab Emirates, and Venezuela.

 

911 Trillions: Follow the Money

In this documentary, James Corbett approaches the mystery of 9-11 by tracing money flows rather than physical evidence – ie he identifies individuals and companies that plainly had foreknowledge of the 9-11 attacks and used it to reap windfall profits.

The three main ways people profited from 9-11 were insurance scams, insider trading and fraudulent electronic transactions. Ironically the Securities and Exchange Commission (SEC), 9-11 Commission and FBI identified some of the same scam artists as Corbett and other private researchers. Bizarrely they declined to indict them owing to “no known ties to al Qaeda.”

Insurance Scams

Key suspects: Larry Silverstein, GMAC (the finance arm of General Motors) and real estate developers Lloyd Goldstein and Joseph Kerr. GMAC, Goldman and Kerr helped finance Silverstein purchase of the Twin towers from the New York Port Authority in July 2001. Immediately on taking possession, Silverstein doubled the insurance coverage from $1.5 billion (the buildings’ assessed value was $1.2 billion) to $3.55 billion. In addition, following the attacks, the Port Authority repaid Silverstein 80% of the original lease. In total, Silverstein netted a $4.5 billion profit from 9-11.

Insider Trading

On Sept 10 2001, the SEC identified a 90% increase in “put options”* for companies whose stocks would tank the week after 9-11:

• United Airlines
• American Airlines
• Morgan Stanley (one of two major tenants in Twin Towers)
• Marsh & McLennan (one of two major tenants in Twin Towers)
• Boeing
• Citigroup
• Axa
• Merrill Lynch
• J P Morgan
• various reinsurers

The SEC also noted a six-fold increase in “call options” on defense contractor Raytheon (manufactured missiles subsequently used in attack on Afghanistan) in the weeks prior to the attacks.

Three of the most prominent insider traders were Mrs and Mrs Wirt D Walker III (distant relatives of George Herbert Walker Bush and business partners with Marvin Bush with links to the Carlyle Group***) and Deutsche Bank, Alex Brown Division, run by to Buzzy Krongard, former consultant to former CIA director James Woolsey Jr.

Fraudulent Electronic Transactions

Marsh & McLannan was responsible for developing Silverstream, an innovative method of paperless electronic transactions. A team of March & McLannan auditors were investigating $100 million in suspicious transactions involving AIG and Deutsche Bank. All were killed in the 9-11 attacks – their data sets conveniently destroyed. A German company Convar was able to reconstruct most of these transactions from hard drives recovered at Ground Zero.

Attack on the Pentagon

The attack on the Pentagon killed the Department of Defense team investigating the $2.3 trillion that went missing from the DOD 2000-2001 budget – and destroyed all their data.

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*A put option lets the option owner sell a stock at its original price when the share price falls – pocket the difference.

**A call option lets the option owner buy a stock at its original price when a share price increases – and pocket the difference.

***Carlyle Group – a global equity management group, closely linked with George H. W. Bush and the bin Laden family.

Anatomy of Modern Corruption: The Clinton Foundation and the Superdelegates

What Hillary Clinton Really Represents

Empire Files (2016)

Film Review

This early 2016 documentary is a virtual encyclopedia of Clinton family corruption. Based entirely on publicly verifiable information, it reveals how Hillary, especially, has based her political career on supporting legislation that specifically benefits her corporate and foreign donors. It also explores the identity of some of the 700 Democratic “superdelegates” who helped deny Bernie Sanders the Democratic nomination – despite overwhelming support he received from voters.

The Clinton Foundation was founded in 1997 with the alleged purpose of providing humanitarian relief after international disasters. Its real purpose, however, was to engage in “crisis capitalism,” a term coined by Naomi Klein in The Shock Doctrine. Following a disasters, such as the 2001 earthquake in India, the Clinton Foundation would waltz in and create a variety of for-profit projects enabling further exploitation of third world resources and labor by Clinton Foundation donors.

Major donors to the Clinton foundation included Exxon, Walmart, Pfizer, Dow, Monsanto, General Electric (GE), Fox News, the Soros Foundation, Freddie Mac and Fannie Mae. As senator, Clinton rewarded the latter two donors by supporting deregulation that would lead to their bankruptcy in 2008 and a massive taxpayer bailout.

As Secretary of State, Clinton would grant similar favors to Boeing and GE by facilitating overseas sales of their military hardware and to Exxon by heavily promoting the spread of fracking throughout the world.

Countries such as Saudi Arabia, Oman, United Arab Republic and Qatar were also big donors to the Clinton Foundation. In all 181 Clinton Foundation donors lobbied Clinton as Secretary of State and most were successful in getting the policies they advocated enacted.

Many of the 700 superdelegates appointed by the Democratic National Committee (to help ensure their hand picked candidates won the Democratic primary) were also corporate lobbyists hoping to benefit financially from a Clinton presidency: among others, the corporate lobbies represented included the Excel pipeline, the private prison industry, Big Pharma and the four main Wall Street banks (City Group, Morgan Stanley, Goldman Sachs and JP Morgan Chase).