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Mapping The Countries With The Most Oil Reserves

Mapping The Countries With The Most Oil Reserves

There’s little doubt that renewable energy sources will play a strategic role in powering the global economy of the future.

But, as Visual Capitalist’s Jeff Desjardins notes, for now, crude oil is still the undisputed heavyweight champion of the energy world.

In 2018, we consumed more oil than any prior year in history – about 99.3 million barrels per day on a global basis. This number is projected to rise again in 2019 to 100.8 million barrels per day.

The Most Oil Reserves by Country

Given that oil will continue to be dominant in the energy mix for the short and medium term, which countries hold the most oil reserves?

Today’s map comes from HowMuch.net and it uses data from the CIA World Factbook to resize countries based on the amount of oil reserves they hold.

Here’s the data for the top 15 countries below:

Venezuela tops the list with 300.9 billion barrels of oil in reserve – but even this vast wealth in natural resources has not been enough to save the country from its recent economic and humanitarian crisis.

Saudi Arabia, a country known for its oil dominance, takes the #2 spot with 266.5 billion barrels of oil. Meanwhile, Canada and the U.S. are found at the #3 (169.7 billion bbls) and the #11 (36.5 billion bbls) spots respectively.

The Cost of Production

While having an endowment of billions of barrels of oil within your borders can be a strategic gift from mother nature, it’s worth mentioning that reserves are just one factor in assessing the potential value of this crucial resource.

In Saudi Arabia, for example, the production cost of oil is roughly $3.00 per barrel, which makes black gold strategic to produce at almost any possible price.

Other countries are not so lucky:

*Total cost (bbl) includes production cost (also shown), capital spending, gross taxes, and admin/transport costs.

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

Life imitates art: Norway rejects oil prospecting in sensitive Arctic islands

Life imitates art: Norway rejects oil prospecting in sensitive Arctic islands

In what seemed like an episode of the Norwegian television drama Occupied, Norway’s largest political party joined smaller ones in the nation’s parliament to prevent oil exploration in the scenic Lofoten archipelago. The Labor Party’s environmental wing made climate change and scenic beauty big issues.

Unlike another contentious oil resource, Alaska’s Arctic National Wildlife Refuge, these islands get around 1 million visitors each year. That implies that many Norwegians have actually seen the islands.

In the history of oil-rich nations, Norwegians have followed an unorthodox path. While most such nations have chosen to subsidize domestic prices of petroleum products or at least keep them cheap by policy, Norway has taxed consumption of oil and oil products as if the country were an importer trying to economize on petroleum use.

A recent Bloomberg survey showed that the average price of a gallon of gas worldwide was $3.48. The range was 1 cent in Venezuela to $7.61 in Hong Kong. Norway ranked second highest at $6.89.

Even more strange is that Norway has become a leading market for all-electric cars. About one-third of all new cars sold in the country last year were all-electric. Of course, Norway has very large hydroelectric resources, resources which produced 93.6 percent of the country’s electricity in February 2019, the most recent month for which data is available. But these copious hydropower resources have long been available and didn’t prevent the country from becoming dependent on petroleum-fueled transportation just like the rest of the world.

Norway also made a fateful and propitious decision shortly after the discovery of its oil and natural gas riches in the North Sea. The country decided to invest much of the tax revenue derived from oil and gas in a sovereign wealth fund to be managed on behalf of the Norwegian people for use by future generations.

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

Smart Money Is Piling Into Oil

Smart Money Is Piling Into Oil

oil field dusk

Oil prices jumped to five-month highs this week, pushed higher by a bullish cocktail of supply outages, geopolitical unrest and a sputtering shale sector.

The most recent factor is the sudden eruption of the long simmering feud in Libya between rival factions. The attack on Tripoli by the Libyan National Army (LNA), a militia led by Khalifa Haftar, led to a spike in oil prices on Monday as the market priced in the possibility of supply outages.

One oil export terminal near Tripoli is the most obvious asset at risk. “If this port were to be shut down due to the fighting, this could see a delivery outage of up to 300,000 barrels per day,” Commerzbank said in a note on Tuesday. “The oil market is already undersupplied, so if supply from Libya also falls away the supply deficit will become even bigger.” Brent jumped to $71 and WTI to $64 on the news, the highest level in five months.

Intriguingly, speculators have only recently turned bullish on crude oil in terms of their positions in the futures market. “Indeed, our money-manager positioning index implies that speculative funds only moved from neutral to positive on oil in the latest week,” Standard Chartered wrote in a report on April 9. The investment bank argued that major investors only began to properly factor in geopolitical risk in the last few days, having overlooked risk for much of this year. Standard Chartered analysts said that the “supply security” of Libyan oil is “low,” and that output could decline in both the short and medium term. 

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

The geopolitics of oil in the Trump era

The geopolitics of oil in the Trump era

The United States have become the leading world producer of hydrocarbons. As from now, they are using their dominant position exclusively to maximise their profits, and do not hesitate to eliminate their major rivals in oil production, plunging their citizens into misery. Although in the past, access to Middle East oil was a vital necessity for their economy (Carter, Reagan, Bush Sr.), then a market over which they presided (Clinton), and then again a failing ressouce whose supply they wanted to control (Bush Jr., Obama), hydrocarbons have now become black gold (Trump).

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Economy depends primarily on the source of energy to which it has access. This need has always been one of the main causes of war. At one time, it was necessary to put slaves to work in the fields then, in the 19th century, to seize coal with which to feed machinery, and today we rely on hydrocarbons (oil and gas).

To avoid looking at this logic too closely, men have always invented good reasons to justify what they are doing.

  1. that Iran is being sanctioned because of its military nuclear programme (which it closed down in 1988);
  2. that the installations and assets of the PDVSA (Venezuelan Oil) have been seized in order to transfer them from the dictator Maduro to Juan Guaido’s team (although it is the former and not the latter who was constitutionally elected President of Venezuela);
  3. or again that the United States maintains its military presence in Syria in order to support their Kurdish allies against the dictator el-Assad (while in fact the Kurds are mercenaries who do not represent their people, and el-Assad was democratically elected).

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

The Russians are coming (and they’re bringing oil)

The Russians are coming (and they’re bringing oil)

As America’s Russia hysteria is stirred once again by the arrival of the long-awaited report of the U.S. Department of Justice on Russian meddling in the 2016 presidential election, a surge in Russian oil imports has arrived on America’s shores.

The surge was little noticed by what passes for the U.S. foreign policy apparatus these days which has now become obsessed with toppling the current regime in Venezuela—a regime unloved by American oil interests who saw their property expropriated by the Venezuelan government.

By effectively preventing the national Venezuelan oil company from getting paid for its cargoes to the United States, the U.S. government has forced Venezuela, previously a major source of imported oil, to seek other customers for its mostly heavy crude.

But the loss of Venezuela as a major U.S. oil supplier has opened up room for other exporters, most notably Russia. Russian oil has never been subject to the economic sanctions arranged by the United States against the country. The arrival of increasing amounts of Russian crude at America’s ports belies the notion so frequently trumpeted by a chorus of fawning admirers of America’s get-tough foreign policy that the U.S. can now use its rising oil dominance to advance its geopolitical goals.

Here’s what’s wrong with that story. First, the United States remains a substantial importer of petroleum products, both on a gross and a net basis. Yes, the country does export a large amount of the light oil produced from the shale deposits in Texas and elsewhere because American refineries cannot use all of it. Those refineries are generally designed to mix light and heavy crudes for optimal output. But, this means the United States must import a significant amount of heavy crude. America remains wildly dependent on world oil to keep its voracious refining industry in operation.

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

U.S. ‘’Oil Weapon’’ Could Change Geopolitics Forever

U.S. ‘’Oil Weapon’’ Could Change Geopolitics Forever

Trump Senate

In a dynamic that shows just how far U.S. oil production has come in recent years, the U.S. Energy Information Administration (EIA) said on Monday that in the last two months of 2018, the U.S. Gulf Coast exported more crude oil than it imported.

Monthly net trade of crude oil in the Gulf Coast region (the difference between gross exports and gross imports) fell from a high in early 2007 of 6.6 million b/d of net imports to 0.4 million b/d of net exports in December 2018. As gross exports of crude oil from the Gulf Coast hit a record 2.3 million b/d, gross imports of crude oil to the Gulf Coast in December—at slightly less than 2.0 million b/d—were the lowest level since March 1986.

U.S. oil production hit a staggering 12.1 million b/d in February, while that amount has been projected to stay around that production mark in the mid-term then increase in the coming years. The U.S. is the new global oil production leader, followed by Russia and Saudi Arabia, while Saudi Arabia is still the world’s largest oil exporter – a factor that still gives Riyadh considerable leverage, particularly as it works with Russia, and other partners as part of the so-called OPEC+ group of producers. However, Saudi Arabia’s decades-long role of market swing producers has now been replaced by this coalition of producers, reducing Riyadh’s power both geopolitically and in global oil markets. In short, what Saudi Arabia could once do on its own, it has to do with several partners.

Meanwhile, U.S. crude oil production, particularly in the Gulf Coast region, is still increasing. In November 2018, U.S. Gulf Coast crude oil production set a new record of 7.7 million b/d, the IEA report added.

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

Oil Rises As Saudi Extends Production Cuts Through April

Oil Rises As Saudi Extends Production Cuts Through April 

President Trump isn’t going to like this.

Offering the first indication that the OPEC+ cartel of major oil exporters intends to extend cuts, Saudi Arabia has reportedly told its clients that they will receive significantly less oil than they had requested in April, extending deeper-than-agreed oil production cuts into a second month, Bloomberg reported.

Saudi

The report, which provoked a spike in oil prices, suggests that “Riyadh is determined to regain control of the oil market as prices remain well below the level that many OPEC members need to cover their government spending.” Oil rose as much as 1% on the news, before fading some gains.

However, the extension isn’t all that surprising: Responding to Trump, who demanded in a tweet that OPEC do something to curb rising oil prices, Saudi Energy Minister Khalid Al-Falih said last month that “we are taking it easy, 25 countries are taking a very slow and measured approach.”

Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike – fragile!

Aramco, Saudi’s state-owned oil producer, has given customers their allocations for the next month, and they’re some 635,000 barrels short of what refiners had asked for.

With Venezuela output falling further due to U.S. sanctions and power blackouts, oil refiners put in requests – or nominations in industry jargon – for Saudi crude of more than 7.6 million barrels a day for April, the person said. However, the kingdom will supply overseas customers with less than 7 million barrels a day, 635,000 barrels less than refiners asked for however, they said.

The second consecutive month of deep production cuts shows the world’s largest oil exporter is determined to re-balance the market more quickly even though events in Venezuela have left some refiners short of crude. The crisis has worsened a deficit of so-called heavy-sour crude that many refiners use to make diesel.

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

The Real New Deal

The Real New Deal

Wassily Kandinsky Succession 1935

While we’re on the issue of the Green New Deal, here’s an article by Dr. D. with an intro by Dr. D., one he sent me in the mail that contained the actual article, and that I think shouldn’t go to waste. I hope he agrees.

Waste being the key term here, because he arrives at the same conclusion I’ve often remarked upon: that our societies and economies exist to maximize waste production. Make them more efficient and they collapse. 

Ergo: no Green New Deal is any use if you don’t radically change the economic models. Let’s see AOC et al address that, and then we can talk. It’s not as if a shift towards wind and solar will decrease the economic need for waste production (though it may change the waste composition), and thus efficiency is merely a double-edged sword at the very best. 

Here’s Dr. D. First intro, then article:

Dr. D: [..] of course there are a thousand things I can say, but I wanted to make just this one point:  that the economy as we know it is prohibited from contracting by its own system structure.  One thing I couldn’t expand on is that I believe it is almost entirely unconscious.  People like AOC, the Aspen Ecological Center, these people have in the back of their minds “What is possible” and “how things are done” and “can I sell this or will people turn away.” 
 
As I say, the idea of saying, “Everything will be perfect, just live like a Zen Monk” is a non-starter.  Why, I don’t know, as it’s very pleasant and quite provable. 

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

Flirting With Disaster: the Return of Offshore Drilling

Flirting With Disaster: the Return of Offshore Drilling

Photograph by TheConduqtor

It’s been decades since a fisherman out of Montauk on Long Island told me about seeing a ship in the Atlantic Ocean east of Long Island similar to those he had seen searching for oil in the Gulf of Mexico when he was a shrimper there. I telephoned oil company after company and each gave a firm denial about having any interest in looking for petroleum off Long Island.

That was until a PR man from Gulf called back and said, yes, his company was looking for oil and gas off Long Island—and was involved in a consortium of 32 oil companies (many of which earlier issued denials).

It was my first experience in oil industry honesty—an oxymoron.

Then, after breaking the story as an investigative reporter for the daily Long Island Press about the oil industry seeking to drill in the offshore Atlantic, there were years of staying on the story. I traveled the Atlantic Coast including in 1971 getting onto the first off-shore drilling rig set up in the Atlantic, off Nova Scotia. The riskiness of offshore drilling was obvious on that rig. There were spherical capsules to eject workers in emergencies. And a rescue boat went round-and-round 24-hours-a-day. The man from Shell Canada said: “We treat every foot of hole like a potential disaster.”

You might recall seeing movies from years ago about oil drilling in the west and the drill hitting a “gusher” and it raining oil on happy workers. But on an offshore rig that “gusher” would be raining oil on the sea and life in it and then the oil would move to shore.

The Shell Canada executive gestured to the Nova Scotia shore and said peat moss was being stockpiled to try to absorb spilled oil. On Long Island, he said, “you’d use straw.”

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

Bethany McLean: Saudi America

Bethany McLean: Saudi America

The truth about fracking & how it’s changing the world by Adam TaggartFriday, March 1, 2019, 3:37 PM

For years now we’ve been covering the false promise of the American shale oil “miracle”.

Yes, it has extracted a lot more oil out of American soil that most thought possible. But at an economic loss. And at great environmental cost.

If the shale drilling companies can’t make any profit, either when oil prices are high or low — why are we still pursuing shale deposits so aggressively?

To shed further light on this paradox, this week we welcome journalist Bethany McLean to the program. McLean is editor-at-large at Fortune Magazine and a contributing editor for Vanity Fair and Slate magazines. She is also author of the excellent book: Saudi America: The Truth About Fracking And How It’s Changing The World.

McLean warns that the hype, the hucksterism, and the geological shortcomings of the deposits themselves, are setting up both investors and American society for tremendous disappointment:

The real catalyst of the shale revolution was the Great Financial Crisis and the era of unprecedentedly-low interest rates that followed.

And that had two effects. One was that it made debt cheap. So these companies that are heavily dependent on being able to raise capital could raise debt at low prices. And without that, I’m not sure there would’ve been a shale revolution because they needed such immense amounts of capital to fund their drilling.

But it had a second impact, which is that when pension funds were no longer able to earn a return in traditional fixed income markets, they’ve increasingly put their money into riskier assets like hedge funds that invest in credit and private equity firms. Those entities, in turn, have increasingly invested in shale.

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

Have We Already Passed World Peak Oil and World Peak Coal?

Have We Already Passed World Peak Oil and World Peak Coal?

Most people expect that our signal of an impending reduction in world oil or coal production will be high prices. Looking at historical data (for example, this post and this post), this is precisely the opposite of the correct price signal. Oil and coal supplies decline because prices fall too low for producers. These producers make voluntary cutbacks because the prices they receive fall below their cost of production. There often are supply gluts at the same time.

This strange situation arises because prices must be high enough for the producersat the same time that goods and services made by oil (and other energy products) are inexpensive enough for consumers to afford. There is a two way battle taking place:

(1) Prices producers require tend to rise over time, because of depletion. The easiest to extract portion of any resource (such as oil, coal, copper, or lithium) tends to be removed first. What is left tends to be deeper, lower quality, or otherwise more difficult to extract cheaply.

(2) Prices consumers can afford for discretionary goods (such as cell phones and automobiles) tend to fall for a combination of reasons:

  • Wages of many workers fall because of competition from lower cost labor in other countries.
  • Some jobs are eliminated through the use of computers or robots.
  • Young people are increasingly being required to pay for higher education (beyond that which is provided free), leaving many with loans to repay, reducing their discretionary income.
  • Changes to US healthcare law (mostly starting January 1, 2014) lead to required health insurance premiums. While some citizens find cost savings in this approach, healthy young people often experience cutbacks in discretionary income as a result.
  • Rents and home prices keep rising faster than incomes.

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

Everyone Has Fallen for the Lies About Venezuela

Everyone Has Fallen for the Lies About Venezuela

Shutterstock

There are three things I know for sure in this fanciful, sometimes inglorious experience we call life:

  1. You will never have a safety pin when you need one, and you will have thousands when you don’t need one.
  2. Wild animals are breathtakingly majestic until they’re crawling up your pant leg.
  3. A U.S. presidential administration will never admit that it invaded another country or backed a coup attempt in order to essentially steal the natural resources (oil) of said country.

This is why it was so very shocking last week when members of the Trump administration admitted they were backing a coup attempt in order to essentially steal the natural resources (oil) of another country.

That country is Venezuela. I’ll get back to this in a moment.

Let’s take a second to go over the big three. There are three things that seem to provoke the ornery United States into overthrowing or bringing down a foreign government, no matter how many innocent civilians may die in the process. (If enough die, the perpetrators often get nominated for a Nobel Peace Prize.) If your country has one of these things, the U.S. might screw with you. If your country has two of these things, the U.S. will definitely screw with you. If your country has three of these things, then look behind you, because the U.S. is currently screwing you:

1. Being socialist.

Pretty self-explanatory. If you don’t have the same economic system as we do, we treat it like you have candy and we’re not allowed to have any, so we slip razor blades in yours and tell everyone your candy kills people.

2. Dropping the U.S. dollar.

Iraq dropped the dollar. We invaded.
Syria dropped the dollar. We invaded.
Iran dropped the dollar. We want to invade.
Libya dropped the dollar. We invaded.

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

Oil, Agriculture and Imperialism: Averting the Fast-Track to Armageddon?

Oil, Agriculture and Imperialism: Averting the Fast-Track to Armageddon?

Image source

US National Security Advisor John Bolton has more or less admitted that the ongoing destabilisation of Venezuela is about grabbing its oil. He recently stated:

We’re looking at the oil assets… We’re in conversation with major American companies now… It will make a big difference to the United States economically if we could have American oil companies really invest in and produce the oil capabilities in Venezuela.”

The US’s hand-picked supposed leader-in-waiting, Juan Guaido, aims to facilitate the processand usher in a programme of ‘mass privatisation’ and ‘hyper-capitalism’ at the behest of his coup-instigating masters in Washington, thereby destroying the socialist revolution spearheaded by the late Hugo Chavez and returning to a capitalist oligarch-controlled economic system.

One might wonder who is Bolton, or anyone in the US, to dictate and engineer what the future of another sovereign state should be. But this is what the US has been doing across the globe for decades. Its bloody imperialism, destabilisations, coups, assassinations, invasions and military interventions have been extensively documented by William Blum.

Of course, although oil is key to the current analysis of events in Venezuela, there is also the geopolitical subtext of debt, loans and Russian investment and leverage within the country. At the same time, it must be understood that US-led capitalism is experiencing a crisis of over-production: when this occurs capital needs to expand into or create new markets and this entails making countries like Venezuela bow to US hegemony and open up its economy.

For US capitalism, however, oil is certainly king. Its prosperity is maintained by oil with the dollar serving as the world reserve currency. Demand for the greenback is guaranteed as most international trade (especially and significantly oil) is carried out using the dollar. And those who move off it are usually targeted by the US (Venezuela being a case in point).

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

Oil, Agriculture and Imperialism: Averting the Fast-Track to Armageddon?

Oil, Agriculture and Imperialism: Averting the Fast-Track to Armageddon?

US National Security Advisor John Bolton has more or less admitted that the ongoing destabilisation of Venezuela is about grabbing its oil. He recently stated:

“We’re looking at the oil assets… We’re in conversation with major American companies now… It will make a big difference to the United States economically if we could have American oil companies really invest in and produce the oil capabilities in Venezuela.”

The US’s hand-picked supposed leader-in-waiting, Juan Guaido, aims to facilitate the process and usher in a programme of ‘mass privatisation’ and ‘hyper-capitalism’ at the behest of his coup-instigating masters in Washington, thereby destroying the socialist revolution spearheaded by the late Hugo Chavez and returning to a capitalist oligarch-controlled economic system.

One might wonder who is Bolton, or anyone in the US, to dictate and engineer what the future of another sovereign state should be. But this is what the US has been doing across the globe for decades. Its bloody imperialism, destabilisations, coups, assassinations, invasions and military interventions have been extensively documented by William Blum.

Of course, although oil is key to the current analysis of events in Venezuela, there is also the geopolitical subtext of debt, loans and Russian investment and leverage within the country. At the same time, it must be understood that US-led capitalism is experiencing a crisis of over-production: when this occurs capital needs to expand into or create new markets and this entails making countries like Venezuela bow to US hegemony and open up its economy.

For US capitalism, however, oil is certainly king. Its prosperity is maintained by oil with the dollar serving as the world reserve currency. Demand for the greenback is guaranteed as most international trade (especially and significantly oil) is carried out using the dollar. And those who move off it are usually targeted by the US (Venezuela being a case in point).

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

Why Must Venezuela Be Destroyed?

Why Must Venezuela Be Destroyed?

February 01, 2019 “Information Clearing House” –     Last week Trump, his VP Mike Pence, US State Dept. director Mike Pompeo and Trump’s national security advisor John Bolton, plus a bunch of Central American countries that are pretty much US colonies and don’t have foreign policies of their own, synchronously announced that Venezuela has a new president: a virtual non-entity named Juan Guaidó, who was never even a candidate for that office, but who was sorta-kinda trained for this job in the US. Guaidó appeared at a rally in Caracas, flanked by a tiny claque of highly compensated sycophants. He looked very frightened as he self-appointed himself president of Venezuela and set about discharging his presidential duties by immediately going into hiding.

His whereabouts remained unknown until much later, when he surfaced at a press conference, at which he gave a wishy-washy non-answer to the question of whether he had been pressured to declare himself president or had done so of his own volition. There is much to this story that is at once tragic and comic, so let’s take it apart piece by piece. Then we’ll move on to answering the question of Why Venezuela must be destroyed (from the US establishment’s perspective).

What stands out immediately is the combination of incompetence and desperation exhibited by all of the above-mentioned public and not-so-public figures. Pompeo, in voicing his recognition of Guaidó, called him “guido,” which is an ethnic slur against Italians, while Bolton did one better and called him “guiado” which could be Spanish for “remote-controlled.” (Was that a Freudian slip or just another one of Bolton’s senior moments?) Not to be outdone, Pence gave an entire little speech on Venezuela—a sort of address to the Venezuelan people—which was laced with some truly atrocious pseudo-Spanish gibberish and ended with an utterly incongruous “¡Vaya con Dios!” straight out of a hammy 1950s Western.

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

Olduvai IV: Courage
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Olduvai II: Exodus
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Olduvai II: Exodus
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