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Energy Dominance Isn’t Just a Trump Obsession

Energy Dominance Isn’t Just a Trump Obsession

Energy Dominance should be the catchphrase of the day. It’s on the minds of every political figure, and the focus of every economy.

This is especially true of those vulnerable to a change in the status quo, namely Saudi Arabia.

While some continue to believe the gyrations of the oil market over the past few months are evidence of our running up against the limit of the petroleum based global economy, I disagree. 

The world is awash in decades of easily-extracted oil and gas. The supply of it has been kept off the market due to its centrality in the grand game of geopolitics. But, it has nothing to do with the amount of oil and gas out there.

Peak oil has become a religion among its adherents. Decrying the U.S. shale boom, rightly, for its profligacy has more to do with it being a consequence of disastrous central bank inflation rather than some grand plan of the ‘cabal’ because we passed peak EROEI some time ago.

When you drop interest rates to zero and flood the world with liquidity that can only find a home in equity markets, the natural result is malinvestment into unsustainable business practices.

The first wave of the shale boom in the U.S. occurred during this period and created the dynamic we have today. It’s groundwork was laid when oil prices spiked during Greenspan’s post-9/11 reflation and the Iraq War took a lot of marginal supply off the table. 

That sparked a gold rush mentality and a huge boom occurred as oil prices kept rising after “Bernanke saved the world” with trillions in liquidity and multiple rounds of QE. 

Properties were bought based on sky-high valuations which were the result of searching for yield in a yield-free world. 

 …click on the above link to read the rest of the article…

Trump Betrays MAGA Over Venezuela

Trump Betrays MAGA Over Venezuela

The U.S. backed a coup in Venezuela that has failed. And President Trump was the architect of it. This is a farce surrounding an intrigue contained within a tragedy.

What has happened in Venezuela is tragic. Nicolas Maduro is a comical figure straight out of central casting for a South American leader of a junta. But it has been the U.S.’s designs on Venezuela’s oil and gas reserves (the largest proven in the world as of 2017) that is the real story behind this week’s events.

For anyone still harboring doubts as to who Trump truly is Venezuela should end them. Trump’s Energy Dominance policy is at the core of his foreign policy. And he will do whatever it takes to secure that policy and deliver a long-standing order to the U.S. and European oligarchy to gain control over Venezuela.

Energy Dominance

As Alistair Crooke succinctly put it last year at Strategic Culture:


The US – were energy dominance to succeed – simply would control the tap to the economic development – or its lack thereof – for rivals China, and Asia. And the US could squeeze Russia’s revenues in this way, too. In short, the US could put a tourniquet on China’s and Russia’s economic development plans. Is this why JCPOA was revoked by President Trump?
Here then, is the squaring of that circle (more US power, yet less empire): Trump’s US aims for ‘domination’, not through the globalists’ permanent infrastructure of the US defence umbrella, but through the smart leveraging of the US dollar and financial clearing monopoly, by ring-fencing, and holding tight, US technology, and by dominating the energy market, which in turn represents the on/off valve to economic growth for US rivals. In this way, Trump can ‘bring the troops home’, and yet America keeps its hegemony. Military conflict becomes a last resort. 

 …click on the above link to read the rest of the article…

“Energy Dominance,” what does it mean? Decoding a Fashionable Slogan

“Energy Dominance,” what does it mean? Decoding a Fashionable Slogan

“Now, I know for a fact that American energy dominance is within our grasp as a nation.” Ryan Zinke, U.S. Secretary of the Interior (source)

“All Warfare is Based on Deception” Sun Tzu, “The Art of War”

Over nearly a half-century, since the time of Richard Nixon, American presidents have proclaimed the need for “energy independence” for the US, without ever succeeding in attaining it. During the past few years, it has become fashionable to say that the US has, in fact, become energy independent, even though it is not true. And, doubling down on this concept, there came the idea of “energy dominance,”introduced by the Trump administration in June 2017.  It is now used at all levels in the press and in the political debate.

No doubt, the US has good reasons to be bullish on oil production. Of the three major world producers, it is the only one growing: it has overtaken Saudi Arabia and it seems to be poised to overtake Russia in a few years. (graphic source).

This rebound in the US production after the decline that started in the early 1970s is nearly miraculous. And the miracle as a name: shale oil. A great success, sure, but, if you think about it, the whole story looks weird: the US is trying to gain this “dominance” by means of resources which, once burned, will be forever gone. It is like people competing at who is burning their own house faster. What sense does it make?

Art Berman keeps telling us that shale oil is an expensive resource that could be produced at a profit only for market conditions that are unrealistic to expect. So far, much more money has been poured into shale oil production than it has returned from the sales of shale oil.

 …click on the above link to read the rest of the article…

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