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Obama Oil Speculation Task Force Ignores Oil Speculation

By Matt Bewig | AllGov | March 05, 2012

Despite a growing consensus that speculators are behind recent price increases, the government’s almost year-old oil speculation task force has done little more than talk about the problem. From the beginning of January to the end of February, the average retail price per gallon of gasoline jumped 42 cents from $3.30 to $3.72–a spike of 12.7% in just eight weeks. This year’s pain at the pump is eerily similar to last year’s, when gas prices jumped 77 cents from $3.19 to $3.96 in just eleven weeks between February 21 and May 9–a leap of 24.1%.

In response to last year’s problem, in April 2011, President Obama and Attorney General Eric Holder announced the creation of the Oil and Gas Price Fraud Working Group, which was supposed to root out speculators who buy and sell oil futures based on the predicted price of oil. The trouble is, oil industry experts now estimate that financial speculators account for about 65% of the trading in oil futures contracts, up from 30% historically, leading many to conclude that the reversed ratio explains the high and volatile oil and gasoline prices. One analysis estimated that as much as 30% of the current price can be attributed to speculation. While the task force, which has met only four or five times, has been assisting a Federal Trade Commission investigation into gas prices since June 2011, a key problem is that most price speculation is legal, unless a trader relies on insider information or commits fraud, both of which can be difficult to prove.

Nevertheless, the fact that the U.S. today is producing more of its own oil than it has in years, and supply is actually outstripping demand, has many demanding action on gasoline prices. This year, however, the President is emphasizing his proposal to eliminate tax breaks that net the oil companies about $4 billion per year. Given the lack of success of the oil speculation task force, those tax breaks are probably safe for now.

To Learn More:

Whatever Happened to Task Force on Oil Speculation? (by Kevin G. Hall, McClatchy Newspapers)

U.S. Use of Gasoline is Down, Yet Pump Prices are Up as Speculators Move In (by Noel Brinkerhoff and David Wallechinsky, AllGov)

Gas Prices Up, but so Are Profits and Exports as Refiners Hold Back Production (by Noel Brinkerhoff, AllGov)

March 5, 2012 Posted by | Economics, Malthusian Ideology, Phony Scarcity, Progressive Hypocrite | , , , | 2 Comments

Biofuels not food the biggest driver of ‘land grabbing’ deals, says report

‘Land grab’ report highlights growing interest from speculators in ‘flex’ crops like soya, palm oil and sugarcane that can be used for biofuels or food

By Laurie Tuffrey | The Ecologist | 18th December, 2011

The amount of land acquired for biofuels globally is far higher than previously thought, according to one of the most comprehensive assessments yet by the International Land Coalition (ILC).

Biofuels are now the major driver for large-scale purchases of farmland or ‘land grabbing’ in the global south, with almost 53 per cent of the 71 million hectares cross-referenced in the report, being used for biofuels.

In Africa, the impact of biofuels was even stronger with 66 per cent of land purchases used for biofuels. Food was next highest at 15 per cent.

This is far higher than a World Bank’s analysis last year that just 21 per cent of global land grab deals conducted between 2008-9 were being used for biofuels.

Europe’s biofuel demand

Campaigners say ‘land grabbing’ is being driven by EU targets to source 10 per cent of all transport fuels for buses and cars from biofuels rather than conventional fossil fuels by 2020.

‘These findings suggest that the scale of land-grabbing for biofuel production is far worse than previously imagined,’ Robbie Blake of Friends of the Earth Europe. ‘Europe’s appetite for land is already unsustainable, reaching well beyond its borders, with devastating social and environmental impacts.’

The report, ‘Land Rights and the Rush for Land’, involved the collaboration of over 40 different organisations in the research process – the biggest study to date. It says rural livelihoods have been put in jeopardy by the land grabbing deals, with the promise of jobs not, as yet, materialising.

‘Weak governance, corruption and a lack of transparency in decision-making, which are key features of the  typical environment in which large-scale land acquisitions take place, mean that the poor gain few benefits from these deals but pay high costs,’ says Dr Madiodio Niasse, Secretariat Director of the International Land Coalition.

Rise in ‘flex’ crops

Report author Michael Taylor, from the International Land Coalition, says they were surprised by the dominance of biofuels in land grabbing deals.

‘What one would expect is that food would be a bigger driver, because biofuel is largely driven by two factors which can change quite quickly: one is subsidy […] the other is other is technological change.’

Taylor said that there had also been a rise in ‘flex’ crops in land grabbing deals, which could be used for biofuels or food, such as soya, palm oil and sugar cane.

‘I think some savvy investors are moving towards planting crops that, as the market changes, they can use for whatever they want. At the moment, it looks like energy is maybe more profitable than food, and so it’s biofuel food stock. But, if something changes in the market, they can change it to food.’

After biofuels and food, the other main drivers of land-grabbing deals were mineral exploitation, tourism and carbon sequestration projects. It is not just foreign investors who buy land either, in some cases national elites were behind the deals, buying up land before offering their services to overseas companies.

Land deals going wrong

The report highlighted land grab deals that went wrong and left local populations with degraded land. For example, in Mozambique and Tanzania land was abandoned after the financial crisis and changing oil prices, which made biofuels less attractive to speculators.

As well as changing financial circumstances, the report says many investments were failing because of unrealistic targets and an underestimation of the technical, logistical, administrative and community engagement challenges involved in getting these projects going.’

Governments were also guilty of abusing the land rights of local communities. In Ethiopia, a large area of land owned by the Indian company Karuturi has been put out of bounds to its original users, despite the company only using a small area of it, denying them access to a water supply and thereby rendering their grazing land useless.

And in Indonesia, the government has given large concessions of forest to companies to produce oil, which was subsequently harvested for its timber without any planting taking place, leaving the area unusable by its local communities.

December 30, 2011 Posted by | Environmentalism, Malthusian Ideology, Phony Scarcity | Leave a comment

The Bloodshed in Honduras: Obama’s Disgrace

Biofuel Death Squads

By MARK WEISBROT | CounterPunch | November 21, 2011

Imagine that an opposition organizer were murdered in broad daylight in Argentina, Bolivia, Ecuador or Venezuela by masked gunmen, or kidnapped and murdered by armed guards of a well-known supporter of the government.  It would be front page news in the New York Times, and all over the TV news.  The U.S. State Department would issue a strong statement of concern over grave human rights abuses.  If this were ever to happen.

Now imagine that 59 of these kinds of political killings had taken place so far this year, and 61 the previous year.  Long before the number of victims reached this level, this would become a major foreign policy issue for the United States, and Washington would be calling for international sanctions.

But we are talking about Honduras, not Bolivia or Venezuela.  So when President Porfirio Lobo of Honduras came to Washington last month, President Obama greeted him warmly and said:

“Two years ago, we saw a coup in Honduras that threatened to move the country away from democracy, and in part because of pressure from the international community, but also because of the strong commitment to democracy and leadership by President Lobo, what we’ve been seeing is a restoration of democratic practices and a commitment to reconciliation that gives us great hope.”

Of course, President Obama refused to even meet with the democratically elected president that was overthrown in the coup that he mentioned, even though that president came to Washington three times seeking help after the coup.  That was Mel Zelaya, a left-of-center president who was overthrown by the military and conservative sectors in Honduras after instituting a number of reforms that people had voted for, like raising the minimum wage and laws promoting land reform.

But what angered Washington most was that Zelaya was close to the left governments of South America, including Venezuela.  He wasn’t any closer to Venezuela than Brazil or Argentina was, but this was a crime of opportunity.  So when the Honduran military overthrew Zelaya in June of 2009, the Obama Administration did everything it could for the next six months to make sure that the coup succeeded.  The “pressure from the international community” that Obama referred to in the above statement came from other countries, mainly the left-of-center governments in South America.  The United States was on the other side, fighting — ultimately successfully — to legitimize the coup government through an “election” that the rest of the hemisphere refused to recognize.

In May of this year, Zelaya  stated publicly what most of us who followed the events closely already guessed was true:  that Washington was behind the coup and helped bring it about.  While no one will likely bother to investigate the U.S. role in the coup, this is quite plausible given the overwhelming circumstantial evidence.

Porifiro Lobo took office in January 2010, but most of the hemisphere refused to recognize the government because his election took place under conditions of serious human rights violations.  In May 2011 an agreement was finally brokered in Cartegena, Colombia, that allowed Honduras back into the Organization of American States. But the Lobo government has not complied with its part of the Cartegena accords, which included human rights guarantees for the political opposition.

Here are two of the dozens of political killings that have occurred during Lobo’s presidency, as compiled by the Chicago Religious Leadership Network on Latin America (CRLN):

“Pedro Salgado, vice-president of the Unified Campesino Movement of Aguán (MUCA), was shot then beheaded at about 8:00 p.m. at his home in the La Concepción empresa cooperative. His spouse, Reina Irene Mejía, was also shot to death at the same time. Pedro suffered a murder attempt in December 2010. … Salgado, like the presidents of all the cooperatives claiming rights to land used by African palm oil businessmen in the Aguán, had been subject to constant death threats since the beginning of 2011.”

The courage of these activists and organizers in the face of such horrific violence and repression is amazing.  Many of the killings over the past year have been in the Aguán Valley in the Northeast, where small farmers are struggling for land rights against one of Honduras’ richest landowners, Miguel Facussé.  He is producing biofuels in this region on disputed land.  He is close to the United States and was an important backer of the 2009 coup against Zelaya. His private security forces, together with U.S.-backed military and police, are responsible for the political violence in the region.  U.S. aid to the Honduran military has increased since the coup. … Full article

November 21, 2011 Posted by | Environmentalism, Malthusian Ideology, Phony Scarcity, Progressive Hypocrite, Timeless or most popular | 2 Comments

Women Dethrone Malthus

The 7 Billion Person Halloween Scare

By John V. Walsh | Dissident Voice | October 26th, 2011

This Halloween the neo-Malthusians, many dressed up as environmentalists, will have a big scare for us – the birth of the 7 billionth person on “space ship” earth. We will hear again of the demographic disaster sure to befall us with yet another mouth to feed. But a wondrous antidote to such fear mongering is one of the best books of the last year, The Coming Population Crash, by Fred Pearce. The book begins with a sound thrashing of Malthus and satisfyingly exposes the historical and conceptual links between his failed ideas and some unsavory strains of the current environmental movement such as the Carrying Capacity Network and Sierrans for U.S. Population Stabilization, an anti-immigrant group.

At its heart the book conveys a simple fact. The rate of population growth has been decelerating for decades – well before the publication in the 1970s of Paul Ehrlich’s alarmist, implicitly racist, and dead wrong neo-Malthusian tract, The Population Bomb. It is amazing that many environmentalists are unaware of the crucial fact of slowing population growth, and that some react with hostility to it. Further, somewhere between 2050 and 2100, growth will stop and then come crashing down. It is not the sky that will be falling but the population. From Eastern Europe to Southern Italy to Singapore, that day has already arrived and sooner or later it will come to all parts of the planet. In fact, it may well be that in the next century the problem will be a population that is not large enough to be optimal; but that will be for the 22nd century humans to decide and act on.

And why has this happened? The key is the successful assault on patriarchy by women determined to control their fertility and their lives. Yes, prosperity helps; and population control programs, most notably in China, have had some effect, but they are not the essential factors.  In rich countries and poor, religious and secular, Islamic and Christian, the trend is under way and irreversible. Of that there can be no doubt.

The reason is simple. In the latter half of the 20th Century the survival rate of infants increased dramatically so that women did not have to continue to have children for a reproductive lifetime to replenish the population. At the same time, the sexual revolution and easy contraception came along. Now bearing children takes only 10-15 percent of the adult lifetime of a woman.

As Pearce puts it, “Women have grabbed the chance created by that change. While having children remains important to most women’s lives, it is no longer the only thing or even the main thing they do.  They cease to wield power only within the home. Now they are out of the front door. Across the rich world and in much of the poorer world too, women outnumber men on university campuses and dominate entry to professions like medicine, media and the law. They run the farms and even the governments, sometimes. The reproductive revolution has created a feminist revolution that has a long way to go.  But it has already changed the world. For thousands of years men ruled the world.  Patriarchy was regarded as necessary to produce the next generation. It was deeply engrained and tenaciously defended by men,” their social institutions, both church and state, and mores that condemned lesbianism and homosexuality.

The reproductive revolution kicked away this system of patriarchy, because it was no longer necessary to sustain populations. Women have always wanted equal rights.  Feminism is not a new idea And some women have always broken free. But for most women the reproductive revolution has taken feminism from the ‘realm of utopia to practical possibility’.

So while we hear a great deal of alarmist talk about “peak oil” from certain quarters we scarcely ever hear of “peak population.” Fertility in the world peaked at between five and six children per woman in the 1950s. It is now down to 2.6 and still dropping. Replacement is about 2.1, and we are almost there.

What about the aging of this population? The other side of contemporary Malthusianism is the claim that an older population means more mouths to feed and fewer younger working hands to feed them. But that is also false. We have gone from a revolution in agriculture, where it takes an ever smaller fraction of the population, and an ever smaller amount of land per capita, to feed us, to an advanced technological revolution where, for example, productivity in manufacturing in the U.S. is growing exponentially with a rate constant of .035 per year and in all areas at an exponential rate of 0.02 per year. (Productivity here is output per person hour.) So when you hear a voice telling you that we cannot afford Social Security or Medicare benefits for all that is the voice of Malthus, always wrong, calling from his grave.

In fact, Pearce sees a great benefit in an older population. Not only will it be healthier than in the past and capable of making contributions well into the eighth decade of life, but it will be less testosterone driven, with more historical sense and more wisdom and less given to the calls of demagogues. Let us hope so.

In the end the greatest philosophical debate of the modern era may be the one between Marx (and Godwin) versus Malthus. Marx famously labeled Malthus’s views as a “slander on humanity” and its capabilities.  Malthus’s views have been used, explicitly or implicitly, to justify some of the worst atrocities in human history, way beyond that of the great Irish famine. But in addition to being cruel, Malthus has always been wrong. He remains so to this day. If we ignore his false prophecies and those of his heirs, we have a very bright future indeed.

John V. Walsh can be reached at john.endwar@gmail.com.

October 26, 2011 Posted by | Malthusian Ideology, Phony Scarcity, Timeless or most popular | 1 Comment

450 economists call on G20 finance ministers to stop speculation fueling hunger

World Development Movement | 11 October 2011

More than 450 economists from over 40 countries have called on the G20 finance ministers, who are meeting in Paris this week, to take urgent action to stop financial speculation in commodity markets driving up food prices and fueling hunger.

‘Excessive financial speculation is contributing to increasing volatility and record food prices, exacerbating global hunger and poverty,’ say the economists in a letter to the finance ministers. ‘With around 1 billion people enduring chronic hunger worldwide, action is urgently needed to curb excessive speculation and its effects on global food prices.

Economists from top universities including Cambridge, Oxford, Berkeley, Cornell and the London School of Economics have signed the letter, adding their voices to an escalating international campaign.

The G20 agriculture ministers have also called on their finance counterparts to introduce tighter regulation. Speculation is one of a range of issues to be discussed at the finance ministers’ meeting.

The US has moved to control speculation, and European proposals for similar rules are expected to be announced next week. But the UK government is set to block European legislation.

Neil Kellard, Professor in Finance at the University of Essex, who signed the letter, said today:

Over-speculation can steer commodity prices away from fair levels indicated by the supply and demand for food and push the poorest further into chronic hunger. Conversely, very little evidence exists that the recent high levels of commodity investing are necessary to meet hedging demand or promote pricing efficiency in financial markets. Position limits can be set to dampen commodity price movements whilst maintaining and probably enhancing market function.”

Deborah Doane, director of the World Development Movement, said today:

Excessive lobbying from the finance sector seems to be delaying political action, both here in the UK, and elsewhere. This is despite the obvious suffering caused by speculation on this most basic human need, and despite the growing number of voices calling for action. Instead of propping up cynical financial gambling by speculators, the G20 finance ministers must act to ensure that strict rules are put in place to limit the hold of bankers over the world’s food markets.”

Read the economists’ letter 

October 24, 2011 Posted by | Economics, Malthusian Ideology, Phony Scarcity | 1 Comment

Carbon credits tarnished by human rights ‘disgrace’

EurActiv | 03 October 2011

The reported killing of 23 Honduran farmers in a dispute with the owners of UN-accredited palm oil plantations in Honduras is forcing the Clean Development Mechanism (CDM) executive board to reconsider its stakeholder consultation processes.

In Brussels, the Green MEP Bas Eickhout called the alleged human rights abuses “a disgrace”, and told EurActiv he would be pushing the European Commission to bar carbon credits from the plantations from being traded under the EU’s Emissions Trading Scheme (ETS).

Several members of the CDM board have been “personally distressed” by the events in Bajo Aguán, northern Honduras, according to the board’s chairman, Martin Hession, who said they had “caused us great difficulties.”

“Plainly, the events that have been described are deplorable,” he told EurActiv. “There is no excuse for them.”

But because they took place after the CDM’s stakeholder consultations had been held, and fell outside the board’s primary remit to investigate emissions reductions and environmental impacts, it had been powerless to block project registrations.

Another board member told EurActiv that Aguán was a “hot potato,” which struck at the heart of the emissions trading scheme’s integrity. “We all regret the situation extremely,” he said.

Human rights abuses

At issue are the reported murders of 23 local farmers who tried to recover land, which they say was illegally sold to big palm oil plantations, such as Grupo Dinant, in a country scarred by widespread human rights abuses.

In July, a report by an International Fact Finding Mission was presented to the European Parliament’s Human Rights Sub-committee, alleging that 23 peasants, one journalist and his partner, had all been murdered in the Bajo Aguán region, between January 2010 and March 2011.

The deaths were facilitated by the “direct involvement of private security guards from some of the local companies who are complicit with police and military officials,” the report said.

In some cases it cited “feigned accidents” in which peasants were run over by security guards working for two named palm oil businessmen. In other cases, the farmers were simply shot, or “disappeared”.

The Inter-American Commission on Human Rights will be holding a hearing into the report on 24 October, and a delegation of MEPs will be visiting the region between 31 October and 4 November.

But because of a three-year gap between the stakeholder consultation process and the biogas project approvals, the CDM board recently ruled that the project had met the criteria of its mandate.

“We are not investigators of crimes,” a board member told EurActiv. “We had to take judgements within our rules – however regretful that may be – and there was not much scope for us to refuse the project. All the consultation procedures precisely had been obeyed.”

Last week, Hession submitted proposals to a CDM board meeting in Quito, Ecuador, addressing the time-lag between project consultations and registrations.

The CDM secretariat is also preparing an analysis report for a UN meeting next year, and a report on the CDM’s integrity is expected to be published later this month.

But carbon credits from the plantations can still be freely traded on the EU ETS, which allows polluters to offset their carbon emissions by nominally clean energy investments.

Charities like the Lutheran World Federation are particularly concerned, as they say the situation in Bajo Aguán is deteriorating.

“There are worrying signs that the Honduran government is moving 1200 police officers and military personnel into the area,” Toni Sandell a rights worker with Aprodev, a coalition of Christian NGO’s told EurActiv. “That has previously been a source of conflict.”

Other human rights workers in the region claim linkages between Honduran state forces and the landowner’s militias they protect, which are said to have connections to local narco-traffickers.

EU urged to act

Green MEPs have been moved to demand that Climate Commissioner Connie Hedegaard act now against carbon credits from the Honduran palm oil plantations.

“As a big buyer [of carbon credits], as an EU, we can say that these kind of human rights allegations are so fundamental that we will not allow them to be bought,” the Green MEP Bas Eickhout told EurActiv.

“We should throw these Honduran projects out of the system,” he added, “as we did with the HFC 23s.”

Martin Hession said that he felt “extreme sympathy” for Eickhout’s suggestion but was concerned that the EU might not have optimal resources to effectively investigate rights violations.

“Ideally human rights problems need to be dealt with through the appropriate channels of the UN,” he told EurActiv. “But there may well be structures in the EU which could deal with the issue,” he said.

Eickhout held a meeting on integrity in the carbon market at the European Parliament last week, which he described as a “launch pad” for putting Aguán on the Parliament’s agenda and “building up pressure on the Commission to come forward with new proposals”.

An official with the European Commission’s directorate-general for Energy told EurActiv that including human rights in the criteria for assessing CDM projects would be “very difficult”.

“You can say that ‘human rights’ means the UN’s Universal Declaration of Human Rights and check every project for compliance, but I think that takes us very far and the practicalities of it would be very difficult,” he said.

For now, business continues as usual in Aguán and the world’s carbon markets, despite the “systemic and grave human rights violations” noted by the International Fact Finding Mission.

“If this is really a direct consequence of Europe’s climate policies then I would like to send my sincere apologies to the people of Honduras,” Bas Eickhout said.

“The CDM is supposed to be offering environmental benefits and sustainable development but these kinds of stories are really terrible. I don’t want to hear them anymore.”

  • 24 Oct.: The Inter-American Commission on Human Rights will hold a hearing into the International Fact Finding report
  • 31 Oct.- 4 Nov.: A delegation of European MEP’s will visit the region
  • October: EU report on CDM integrity to be published

October 5, 2011 Posted by | Environmentalism, Malthusian Ideology, Phony Scarcity | Leave a comment

Obama/Solyndra Reaction: “Should government pick winners/losers? Qualified Yes!”

By Tim Cavanaugh | Reason | September 2, 2011

An L.A. Times editorial boils the scandal over Solyndra – a Fremont, California solar panel maker backed by an important Obama fundraiser that is bankrupt after burning through a taxpayer-guaranteed loan of more than half a billion dollars – down to two questions:

Should the government be in the business of picking winners and losers by providing loan guarantees to risky energy ventures? And is Obama using stimulus funds to reward his political contributors?

To the first, the answer is a qualified yes. Solar and wind projects aren’t the first to benefit from loan guarantees; Washington has been offering them to nuclear power plants for decades. Research and development of alternative forms of energy are expensive and often need more support than private investors are willing to provide, but such investment is worthwhile not only because it stimulates job growth during a downturn, but also because in an era of climate change and worldwide turmoil over oil and other fossil fuels, it’s in the national interest. Moreover, competing countries, notably China, are outspending the U.S. on clean-energy subsidies, and falling behind will only cede the future market to them.

In reverse order, these arguments are: missile gap; global warming; jobz; that the market’s disinterest creates a compelling public concern; and that the nuclear power industry is now a model worth emulating.

Solyndra's Ben Bierman with President Barack Obama

I’m especially concerned about this last, as I recall one long midsummer morning in the boardroom in 2007, during which editorialist Dan Turner slowly sucked all the oxygen from the room and left the rest of us to die one by one or agree to his all-out denunciation of nuclear power, a piece that put the verdict right in the title: “No to nukes.” Some of Dan’s arguments, including the one that the industry has never existed without massive public subsidies and shows no glide path away from public subsidies, I even found compelling.

Why the switcheroo now? I would have thought lingering questions about whether Fukushima is in fact under control would at least give pause to proponents of all-or-nothing behemoth energy policies that are constructed in spite of rather than in response to market conditions.

I also can’t imagine any number of qualifications that would square the notion that government should choose private-sector winners and losers with a rudimentary understanding of fair play or individual liberty. Is the logic that because in this case the winner turned out to be a loser anyway, we shouldn’t pay too much attention?

President Barack Obama with Solyndra's Chris Gronet

Finally I think the ed board is thinking wishfully when it claims the Solyndra debacle just raises “two important questions.” I can think of a few others: What did Solyndra do with the $527 million (out of a total guarantee of $535 million) it borrowed in the form of taxpayer-subsidized loans? Why did the Energy Department provide so much money for a technology – cylindrical rather than flat solar panels – that has not been proven scalable? What role did Tulsa-based fundraiser George Kaiser, whose George Kaiser Family Foundation held more than a 35 percent equity stake in Solyndra as of an aborted IPO in 2009, play in encouraging this subsidy?

I realize editorial writing is a task more otherworldly than priestly transubstantiation of the host, but it’s just willful blindness to pretend the Solyndra case raises only abstract issues. There’s one journalismism that still holds up: If it looks like shit, smells like shit and tastes like shit, it’s the food at the L.A. Times cafeteria.

~

See also:

NBC and MSNBC Completely Ignore Solyndra Bankruptcy – NewsBusters

September 3, 2011 Posted by | Corruption, Malthusian Ideology, Phony Scarcity, Nuclear Power, Progressive Hypocrite | 3 Comments

How Michael Ruppert’s ‘Peak Oil’ Pile is Gaining Tonnage

By Dave McGowan | March 5, 2005

Excerpt:

It appears that, unbeknownst to Westerners, there have actually been, for quite some time now, two competing theories concerning the origins of petroleum. One theory claims that oil is an organic ‘fossil fuel’ deposited in finite quantities near the planet’s surface. The other theory claims that oil is continuously generated by natural processes in the Earth’s magma. One theory is backed by a massive body of research representing fifty years of intense scientific inquiry. The other theory is an unproven relic of the eighteenth century. One theory anticipates deep oil reserves, refillable oil fields, migratory oil systems, deep sources of generation, and the spontaneous venting of gas and oil. The other theory has a difficult time explaining any such documented phenomena.

So which theory have we in the West, in our infinite wisdom, chosen to embrace? Why, the fundamentally absurd ‘Fossil Fuel’ theory, of course — the same theory that the ‘Peak Oil’ doomsday warnings are based on.

I am sorry to report here, by the way, that in doing my homework, I never did come across any of that “hard science” documenting ‘Peak Oil’ that Mr. Strahl referred to. All the ‘Peak Oil’ literature that I found, on Ruppert’s site and elsewhere, took for granted that petroleum is a non-renewable ‘fossil fuel.’ That theory is never questioned, nor is any effort made to validate it. It is simply taken to be an established scientific fact, which it quite obviously is not.

So what do Ruppert and his resident experts have to say about all of this? Dale Allen Pfeiffer, identified as the “FTW Contributing Editor for Energy,” has written: “There is some speculation that oil is abiotic in origin — generally asserting that oil is formed from magma instead of an organic origin. These ideas are really groundless.” (http://www.fromthewilderness.com/free/ww3/04_04_02_oil_recession.html)

Here is a question that I have for both Mr. Ruppert and Mr. Pfeiffer: Do you consider it honest, responsible journalism to dismiss a fifty year body of multi-disciplinary scientific research, conducted by hundreds of the world’s most gifted scientists, as “some speculation”?

Another of FTW’s prognosticators, Colin Campbell, is described by Ruppert as “perhaps the world’s foremost expert on oil.” He was asked by Ruppert, in an interview, “what would you say to the people who insist that oil is created from magma …?” Before we get to Campbell’s answer, we should first take note of the tone of Ruppert’s question. It is not really meant as a question at all, but rather as a statement, as in “there is really nothing you can say that will satisfy these nutcases who insist on bringing up these loony theories.”

Campbell’s response to the question was an interesting one: “No one in the industry gives the slightest credence to these theories.” Why, one wonders, did Mr. Campbell choose to answer the question on behalf of the petroleum industry? And does it come as a surprise to anyone that the petroleum industry doesn’t want to acknowledge abiotic theories of petroleum origins? Should we have instead expected something along these lines?:

“Hey, everybody … uhhh … you know how we always talked about oil being a fossil fuel? And … uhmm … you know how the entire profit structure of our little industry here is built upon the presumption that oil is a non-renewable, and therefore very valuable, resource?

And remember all those times we talked about shortages so that we could gouge you at the pumps? Well … guess what, America? You’ve been Punk’d!”

For the sake of accuracy, I think we need to modify Mr. Campbell’s response, because it should probably read: no one in the petroleum industry will publicly admit giving any credence to abiotic theories. But is there really any doubt that those who own and control the oil industry are well aware of the true origins of oil? How could they not be?

Surely there must be a reason why there appears to be so little interest in understanding the nature and origins of such a valuable, and allegedly vanishing, resource. And that reason can only be that the answers are already known. The objective, of course, is to ensure that the rest of us don’t find those answers. Why else would we be encouraged, for decades, to cling tenaciously to a scientific theory that can’t begin to explain the available scientific evidence? And why else would a half-century of research never see the light of day in Western scientific and academic circles?

Maintaining the myth of scarcity, you see, is all important. Without it, the house of cards comes tumbling down. And yet, even while striving to preserve that myth, the petroleum industry will continue to provide the oil and gas needed to maintain a modern industrial infrastructure, long past the time when we should have run out of oil. And needless to say, the petroleum industry will also continue to reap the enormous profits that come with the myth of scarcity.

How will that difficult balancing act be performed? That is where, it appears, the ‘limited hangout’ concerning abiotic oil will come into play.

Perhaps the most telling quote to emerge from all of this came from Roger Sassen, identified as the deputy director of Resource Geosciences, a research group out of Texas A&M University:

“The potential that inorganic hydrocarbons, especially methane and a few other gasses, might exist at enormous depth in the crust is an idea that could use a little more discussion. However, not from people who take theories to the point of absurdity. This is an idea that needs to be looked into at some point as we start running out of energy. But no one who is objective discusses the issue at this time.”

The key point there (aside from Sassen’s malicious characterization of Kenney) is his assertion that no one is discussing abiotic oil at this time. And why is that? Because, you see, we first have to go through the charade of pretending that the world has just about run out of ‘conventional’ oil reserves, thus justifying massive price hikes, which will further pad the already obscenely high profits of the oil industry. Only then will it be fully acknowledged that there is, you know, that ‘other’ oil.

“We seem to have plum run out of that fossil fuel that y’all liked so much, but if you want us to, we could probably find you some mighty fine inorganic stuff. You probably won’t even notice the difference. The only reason that we didn’t mention it before is that – and may God strike me dead if I’m lying – it is a lot more work for us to get to it. So after we charged you up the wazoo for the ‘last’ of the ‘conventional’ oil, we’re now gonna have to charge you even more for this really ‘special’ oil. And with any luck at all, none of you will catch on that it’s really the same oil.”

And that, dear readers, is how I see this little game playing out. Will you be playing along?

Several readers have written to me, incidentally, with a variation of the following question: “How can you say that Peak Oil is being promoted to sell war when all of the websites promoting the notion of Peak Oil are stridently anti-war?”

But of course they are. That, you see, is precisely the point. What I was trying to say is that the notion of ‘Peak Oil’ is being specifically marketed to the anti-war crowd — because, as we all know, the pro-war crowd doesn’t need to be fed any additional justifications for going to war; any of the old lies will do just fine. And I never said that the necessity of war was being overtly sold. What I said, if I remember correctly, is that it is being sold with a wink and a nudge.

The point that I was trying to make is that it would be difficult to imagine a better way to implicitly sell the necessity of war, even while appearing to stake out a position against war, than through the promotion of the concept of ‘Peak Oil.’ After September 11, 2001, someone famously said that if Osama bin Laden didn’t exist, the US would have had to invent him. I think the same could be said for ‘Peak Oil.’

I also need to mention here that those who are selling ‘Peak Oil’ hysteria aren’t offering much in the way of alternatives, or solutions. Ruppert, for example, has stated flatly that “there is no effective replacement for what hydrocarbon energy provides today.” )

The message is quite clear: “we’re running out of oil soon; there is no alternative; we’re all screwed.” And this isn’t, mind you, just an energy problem; as Ruppert has correctly noted, “Almost every current human endeavor from transportation, to manufacturing, to plastics, and especially food production is inextricably intertwined with oil and natural gas supplies.” )

If we run out of oil, in other words, our entire way of life will come crashing down. One of Ruppert’s “unimpeachable sources,” Colin Campbell, describes an apocalyptic future, just around the corner, that will be characterized by “war, starvation, economic recession, possibly even the extinction of homo sapiens.”

My question is: if Ruppert is not selling the necessity of war, then exactly what is the message that he is sending to readers with such doomsday forecasts? At the end of a recent posting, Ruppert quotes dialogue from the 1975 Sidney Pollack film, Three Days of the Condor:

Higgins: …It’s simple economics. Today it’s oil, right? In 10 or 15 years – food, Plutonium. And maybe even sooner. Now what do you think the people are gonna want us to do then?

Turner: Ask them.

Higgins: Not now – then. Ask them when they’re running out. Ask them when there’s no heat in their homes and they’re cold. Ask them when their engines stop. Ask them when people who’ve never known hunger start going hungry. Do you want to know something? They won’t want us to ask them. They’ll just want us to get it for them.

The message there seems pretty clear: once the people understand what is at stake, they will support whatever is deemed necessary to secure the world’s oil supplies. And what is it that Ruppert is accomplishing with his persistent ‘Peak Oil’ postings? He is helping his readers to understand what is allegedly at stake.

Elsewhere on his site, Ruppert warns that “Different regions of the world peak in oil production at different times … the OPEC nations of the Middle East peak last. Within a few years, they — or whoever controls them — will be in effective control of the world economy, and, in essence, of human civilization as a whole.”

Within a few years, the Middle East will be in control of all of human civilization?! Try as I might, I can’t imagine any claim that would more effectively rally support for a U.S. takeover of the Middle East. The effect of such outlandish claims is to cast the present war as a war of necessity. Indeed, a BBC report posted on Ruppert’s site explicitly endorses that notion: “It’s not greed that’s driving big oil companies – it’s survival.”

A few final comments are in order here about ‘Peak Oil’ and the attacks of September 11, 2001, which Ruppert has repeatedly claimed are closely linked. In a recent posting, he bemoaned the fact that activists are willing to “Do anything but accept the obvious reality that for the US government to have facilitated and orchestrated the attacks of 9/11, something really, really bad must be going on.” That something really, really bad, of course, is ‘Peak Oil.’

To demonstrate the dubious nature of that statement, all one need do is make a couple of quick substitutions, so that it reads: “for the German government to have facilitated and orchestrated the attack on the Reichstag, something really, really bad must have been going on.” Or, if you are the type that bristles at comparisons of Bush to Hitler, try this one: “for the US government to have facilitated and orchestrated the attack on the USS Maine, something really, really bad must have been going on.”

August 23, 2011 Posted by | Deception, Mainstream Media, Warmongering, Malthusian Ideology, Phony Scarcity | 3 Comments

‘Peak Oil’, the best way to implicitly sell the necessity of war

“Within a few years, the Middle East will be in control of all of human civilization”

David McGowan | March 13, 2004 | Center for an Informed America

On February 29, 2004, I received the following e-mail message from Michael Ruppert of From the Wilderness:

I challenge you to an open, public debate on the subject of Peak Oil; any time, any place after March 13th 2004. I challenge you to bring scientific material, production data and academic references and citations for your conclusions like I have. I suggest a mutually acceptable panel of judges and I will put up $1,000 towards a purse to go to the winner of that debate. I expect you to do the same. And you made a dishonest and borderline libelous statement when you suggested that I am somehow pleased that these wars of aggression have taken place to secure oil. My message all along has been, “Not in my name!”

Put your money where your mouth is. But first I suggest you do some homework. Ad hominem attacks using the word “bullshit”, unsupported by scientific data are a sign of intellectual weakness (at best). I will throw more than 500 footnoted citations at you from unimpeachable sources. Be prepared to eat them or rebut them with something more than you have offered.

Wow! How does high noon sound?

Before I get started here, Mike, I need to ask you just one quick question: are you sure it was only a “borderline libelous statement”? Because I was really going  for something more unambiguously libelous. I’ll see if I can do better on this outing. Let me know how I do.

Several readers have written to me, incidentally, with a variation of the following question: “How can you say that Peak Oil is being promoted to sell war when all of the websites promoting the notion of Peak Oil are stridently anti-war?”

But of course they are. That, you see, is precisely the point. What I was trying to say is that the notion of ‘Peak Oil’ is being specifically marketed to the anti-war crowd — because, as we all know, the pro-war crowd doesn’t need to be fed any additional justifications for going to war; any of the old lies will do just fine. And I never said that the necessity of war was being overtly sold. What I said, if I remember correctly, is that it is being sold with a wink and a nudge.

The point that I was trying to make is that it would be difficult to imagine a better way to implicitly sell the necessity of war, even while appearing to stake out a position against war, than through the promotion of the concept of ‘Peak Oil.’ After September 11, 2001, someone famously said that if Osama bin Laden didn’t exist, the US would have had to invent him. I think the same could be said for ‘Peak Oil.’

I also need to mention here that those who are selling ‘Peak Oil’ hysteria aren’t offering much in the way of alternatives, or solutions. Ruppert, for example, has stated flatly that “there is no effective replacement for what hydrocarbon energy provides today.”
(http://www.fromthewilderness.com/free/ww3/052703_9_questions.html)

The message is quite clear: “we’re running out of oil soon; there is no alternative; we’re all screwed.” And this isn’t, mind you, just an energy problem; as Ruppert has correctly noted, “Almost every current human endeavor from transportation, to manufacturing, to plastics, and especially food production is inextricably intertwined with oil and natural gas supplies.” (http://www.fromthewilderness.com/free/ww3/102302_campbell.html)

If we run out of oil, in other words, our entire way of life will come crashing down. One of Ruppert’s “unimpeachable sources,” Colin Campbell, describes an apocalyptic future, just around the corner, that will be characterized by “war, starvation, economic recession, possibly even the extinction of homo sapiens.” (http://www.fromthewilderness.com/free/ww3/102302_campbell.html)

My question is: if Ruppert is not selling the necessity of war, then exactly what is the message that he is sending to readers with such doomsday forecasts? At the end of a recent posting, Ruppert quotes dialogue from the 1975 Sidney Pollack film, Three Days of the Condor: (http://www.fromthewilderness.com/free/ww3/013004_in_your_face.html)

Higgins: …It’s simple economics. Today it’s oil, right? In 10 or 15 years – food, Plutonium. And maybe even sooner. Now what do you think the people are gonna want us to do then?
Turner: Ask them.
Higgins: Not now – then. Ask them when they’re running out. Ask them when there’s no heat in their homes and they’re cold. Ask them when their engines stop. Ask them when people who’ve never known hunger start going hungry. Do you want to know something? They won’t want us to ask them. They’ll just want us to get it for them.

The message there seems pretty clear: once the people understand what is at stake, they will support whatever is deemed necessary to secure the world’s oil supplies. And what is it that Ruppert is accomplishing with his persistent ‘Peak Oil’ postings? He is helping his readers to understand what is allegedly at stake.

Elsewhere on his site, Ruppert warns that “Different regions of the world peak in oil production at different times … the OPEC nations of the Middle East peak last. Within a few years, they — or whoever controls them — will be in effective control of the world economy, and, in essence, of human civilization as a whole.” (http://www.fromthewilderness.com/free/ww3/102302_campbell.html)

Within a few years, the Middle East will be in control of all of human civilization?! Try as I might, I can’t imagine any claim that would more effectively rally support for a U.S. takeover of the Middle East. The effect of such outlandish claims is to cast the present war as a war of necessity. Indeed, a BBC report posted on Ruppert’s site explicitly endorses that notion: “It’s not greed that’s driving big oil companies – it’s survival.” (http://www.fromthewilderness.com/free/ww3/040403_oil_war_bbc.html)

On the very day that Ruppert’s challenge arrived, I received another e-mail, from someone I previously identified – erroneously, it would appear – as a “prominent critic” of Michael Ruppert. In further correspondence, the writer, Jeff Strahl, explained that he is (a) not a critic of Ruppert in general, but rather a critic only of Ruppert’s stance on certain aspects of the 9-11 story, and (b) not all that prominent. This is what Mr. Strahl had to say:

I’m a participant in a relatively new website, http://911research.wtc7.net, which has done lots of work regarding the WTC and Pentagon side of the 9/11 events, especially the physical evidence which reveals the official story as a complete hoax. Under “talks” you’ll find a slide show I’ve done (and will do again) in public on the Pentagon aspects. This is all simply to let you know I’m far from an apologist for the status quo. Nor am I an apologist for Mike Ruppert, with whom in fact I got into a donnybrook of a fight on public email lists over his denial of the relevancy of physical evidence and the fact that an article full of disinformation about the WTC collapse, written 9/13/01, was still on his website, unedited or corrected, two years later. He finally gave in and printed a (sort of) retraction.

That said, I have to take issue with your stance re Peak Oil, something you say you wish were true, but deny, not on the basis of any information, but on the basis that you seem to think it’s too good to be true, and that it’s all info presented by Ruppert, which you thus suspect since you suspect Ruppert. Matter of fact, Peak Oil was predicted by an oil geologist, King Hubbert, way back in the mid ’60s, before Ruppert was even in college. It’s been pursued since then by lots of people in the science know-how, including Dale Allen Pfeiffer, Richard Heinberg, Colin Campbell and Kenneth Deffeyes. The information is quite clear, global oil production has either peaked in the last couple of years or will do so in the next couple, as Hubbert predicted decades ago (He predicted Peak Oil in the US as happening in the early ’70s, was laughed at, but his prediction came true right on schedule). The science here is quite hard, facts are available from lots of sources. Perhaps Hubbert was part of a long-planned disinfo campaign that was planned way back in the ’60s, and all the others are part of that plot. I find it hard to believe that, and I am quite a skeptic.

As for the relevancy of physical evidence, it would appear that that is another bone that I have to pick with Mr. Ruppert. But I will save that for another time. For now, the issue is ‘Peak Oil’ (which, as you can see, I am continuing to enclose in quotation marks, which is, as regular readers know, how I identify things that don’t actually exist).

For the record, I never said that Michael Ruppert was the only one presenting information about ‘Peak Oil.’ I said that he was the most prominent of those promoting the idea. I also never implied that Ruppert came up with the idea on his own. I am aware that the theory has a history. The issue here, however, is the sudden prominence that ‘Peak Oil’ has attained.

Lastly, let me say that, unlike you, Jeff, I am enough of a skeptic to believe that an ambitious, well-orchestrated disinformation campaign, possibly spanning generations, should never arbitrarily be ruled out. I am also enough of a skeptic to suspect that when a topic I have covered generates the volume of e-mail that my ‘Peak Oil’ musings have generated, then I must have managed to step into a pretty big pile of shit. What I did not realize, until I decided to take Mr. Ruppert’s advice and “do some homework,” was that it was a much bigger pile than I could have imagined.

I read through some, but certainly not all, of the alleged evidence that Ruppert has brought to the table concerning ‘Peak Oil.’ Since I have no interest in financially supporting his cause, I am not a paid subscriber and can therefore not access the ‘members only’ postings. But I doubt that I am missing much. The postings that I did read tended to be extremely redundant and, therefore, a little on the boring side.

Ruppert’s arguments range from the vaguely compelling to the downright bizarre. One argument that pops up repeatedly is exemplified by this Ruppert-penned line: “One of the biggest signs of the reality of Peak Oil over the last two decades has been a continual pattern of merger-acquisition-downsizing throughout the industry.”

Really? And is that pattern somehow unique to the petroleum industry? Or is it a pattern that has been followed by just about every major industry? Is the consolidation of the supermarket industry a sign of the reality of Peak Groceries? And with consolidation of the media industry, should we be concerned about Peak News? Or should we, perhaps, recognize that a pattern of monopoly control – characterized by mergers, acquisitions, and downsizing – represents nothing more than business as usual throughout the corporate world?

Another telling sign of ‘Peak Oil,’ according to Ruppert and Co., is sudden price hikes on gas and oil. Of course, that would be a somewhat more compelling argument if the oil cartels did not have a decades-long history of constantly feigning shortages to foist sudden price increases on consumers (usually just before peak travel periods). Contrary to the argument that appears on Ruppert’s site, it is not need that is driving the oil industry, it is greed.

In what is undoubtedly the most bizarre posting that Ruppert offers in support of his theory, he ponders whether dialogue from an obscure 1965 television series indicates that the CIA knew as far back as the 1960s about the coming onset of ‘Peak Oil.’ (http://www.fromthewilderness.com/free/ww3/042003_secret_agent_man.html) Even if that little factoid came from a more, uhmm, credible source, what would the significance be? Hasn’t the conventional wisdom been, for many decades, that oil is a ‘fossil fuel,’ and therefore a finite, non-renewable resource? Since when has it been an intelligence community secret that a finite resource will someday run out?

A few readers raised that very issue in questioning my recent ‘Peak Oil’ rants. “Even if we are not now in the era of Peak Oil,” the argument generally goes, “then surely we will be soon. After all, it is inevitable.” And conventional wisdom dictates that it is, indeed, inevitable. But if this website has one overriding purpose, it is to question conventional wisdom whenever possible.

There is no shortage of authoritatively stated figures on the From the Wilderness website: billions of barrels of oil discovered to date; billions of barrels of oil produced to date; billions of barrels of oil in known reserves; billions of barrels of oil consumed annually. Yadda, yadda, yadda. My favorite figure is the one labeled, in one posting, “Yet-to-Find.” That figure, 150 billion barrels (a relative pittance), is supposed to represent the precise volume of conventional oil in all the unknown number of oil fields of unknown size that haven’t been discovered yet. Ruppert himself has written, with a cocksure swagger, that “there are no more significant quantities of oil to be discovered anywhere …” (http://www.fromthewilderness.com/free/ww3/013004_in_your_face.html) A rather bold statement, to say the least, considering that it would seem to be impossible for a mere mortal to know such a thing.

Ruppert’s figures certainly paint a scary picture: rapid oil consumption + diminishing oil reserves + no new discoveries = no more oil. And sooner, rather than later. But is the ‘Peak Oil’ argument really valid? It seems logical — a non-renewable resource consumed with a vengeance obviously can’t last for long. The only flaw in the argument, I suppose, would be if oil wasn’t really a ‘fossil fuel,’ and if it wasn’t really a non-renewable resource.

“Conventional wisdom says the world’s supply of oil is finite, and that it was deposited in horizontal reservoirs near the surface in a process that took millions of years.” So said the Wall Street Journal in April 1999 (Christopher Cooper “Odd Reservoir Off Louisiana Prods Oil Experts to Seek a Deeper Meaning,” Wall Street Journal, April 16, 1999). It therefore logically follows that conventional wisdom also says that oil will reach a production peak, and then ultimately run out.
(http://www.oralchelation.com/faq/wsj4.htm)

As I said a few paragraphs ago, the purpose of this website is to question conventional wisdom — by acquainting readers with stories that the media overlook, and with viewpoints that are not allowed in the mainstream. It was my understanding that From the Wilderness, and other ‘alternative’ websites, had a similar goal.

But is ‘Peak Oil’ really some suppressed, taboo topic? If it is, then why, as I sit here typing this, with today’s (March 7, 2004) edition of the Los Angeles Times atop my desk, are the words “Running Out of Oil — and Time” staring me in the face from the front page of the widely read Sunday Opinion section? The lengthy piece, penned by Paul Roberts, is replete with dire warnings of the coming crisis. Save for the fact that the words ‘Peak Oil’ are not routinely capitalized, it could easily pass for a From the Wilderness posting.
(http://www.latimes.com/news/printedition/opinion/la-op-roberts7mar07,1,107339.story)

The Times also informed readers that Roberts has a new book due out in May, entitled The End of Oil: On the Edge of a Perilous New World. Scary stuff. Beating Robert’s book to the stores will be Colin Campbell’s The Coming Oil Crisis, due in April. Both titles will have to compete for shelf space with titles such as Richard Heinberg’s The Party’s Over: Oil, War and the Fate of Industrial Societies, published April of last year; David Goodstein’s Out of Gas: The End of the Age of Oil, which just hit the shelves last month; and Kenneth Deffeyes’ Hubbert’s Peak: The Impending World Oil Shortage, published October 2001. The field is getting a bit crowded, but sales over at Amazon.com remain strong for most of the contenders.

The wholesale promotion of ‘Peak Oil’ seems to have taken off immediately after the September 11, 2001 ‘terrorist’ attacks, and it is now really starting to pick up some steam. The BBC covered the big story last April (http://www.fromthewilderness.com/free/ww3/040403_oil_war_bbc.html). CNN covered it in October (http://www.fromthewilderness.com/free/ww3/100203_cnn_peak_oil.html). The Guardian covered it in December (http://www.fromthewilderness.com/free/ww3/120303_bottom_barrel.html). Now the Los Angeles Times has joined the chorus.

I guess the cat is pretty much out of the bag on this one. Everyone can cancel their subscriptions to From the Wilderness and pocket the $35 a year, since you can read the very same bullshit for free in the pages of the Los Angeles Times.

Interestingly enough, there is another story about oil that, unlike the ‘Peak Oil’ story, actually has been suppressed. It is a story that very few, if any, of my readers, or of Michael Ruppert’s readers, are likely aware of. But before we get to that story, let’s first briefly review what we all ‘know’ about oil.

As anyone who stayed awake during elementary school science class knows, oil comes from dinosaurs. I remember as a kid (calm down, folks; there will be no Brady Bunch references this week) seeing some kind of ‘public service’ spot explaining how dinosaurs “gave their all” so that we could one day have oil. It seemed a reasonable enough idea at the time — from the perspective of an eight-year-old. But if, as an adult, you really stop to give it some thought, doesn’t the idea seem a little, uhmm … what’s the word I’m looking for here? … oh yeah, I remember now … preposterous?

How could dinosaurs have possibly created the planet’s vast oil fields? Did millions, or even billions, of them die at the very same time and at the very same place? Were there dinosaur Jonestowns on a grand scale occurring at locations all across the planet? And how did they all get buried so quickly? Because if they weren’t buried right away, wouldn’t they have just decomposed and/or been consumed by scavengers? And how much oil can you really squeeze from a pile of parched dinosaur skeletons?

Maybe there was some type of cataclysmic event that caused the sudden extinction of the dinosaurs and also buried them — like the impact of an asteroid or a comet. But even so, you wouldn’t think that all the dinosaurs would have been huddled together waiting to become oil fields. And besides, scientists are now backing away from the mass extinction theory.
(http://www.latimes.com/news/nationworld/nation/la-sci-extinction6mar06,1,3634810.story)

The Wall Street Journal article previously cited noted that it “would take a pretty big pile of dead dinosaurs to account for the estimated 660 billion barrels of oil in the [Middle East].” I don’t know what the precise dinosaur-carcass-to-barrel-of-oil conversion rate is, but it does seem like it would take a hell of a lot of dead dinosaurs. Even if we generously allow that a single dinosaur could yield 5 barrels of oil (an absurd notion, but let’s play along for now), more than 130 billion dinosaurs would have had to be simultaneously entombed in just one small region of the world. But were there really hundreds of billions of dinosaurs roaming the earth? If so, then one wonders why there is all this talk now of overpopulation and scarce resources, when all we are currently dealing with is a few billion humans populating the same earth.

And why the Middle East? Was that region some kind of Mecca for dinosaurs? Was it the climate, or the lack of water and vegetation, that drew them there? Of course, the region could have been much different in prehistoric times. Maybe it was like the Great Valley in the Land Before Time movies. Or maybe the dinosaurs had to cross the Middle East to get to the Great Valley, but they never made it, because they got bogged down in the desert and ultimately became (through, I’m guessing here, some alchemical process) cans of 10W-40 motor oil.

Another version of the ‘fossil fuel’ story holds that microscopic animal carcasses and other biological matter gathered on the world’s sea floors, with that organic matter then being covered over with sediment over the course of millions of years. You would think, however, that any biological matter would decompose long before being covered over by sediment. But I guess not. And I guess there were no bottom-feeders in those days to clear the ocean floors of organic debris. Fair enough. But I still don’t understand how those massive piles of biological debris, some consisting of hundreds of billions of tons of matter, could have just suddenly appeared, so that they could then sit, undisturbed, for millions of years as they were covered over with sediment. I can understand how biological detritus could accumulate over time, mixed in with the sediment, but that wouldn’t really create the conditions for the generation of vast reservoirs of crude oil. So I guess I must be missing something here.

The notion that oil is a ‘fossil fuel’ was first proposed by Russian scholar Mikhailo Lomonosov in 1757. Lomonosov’s rudimentary hypothesis, based on the limited base of scientific knowledge that existed at the time, and on his own simple observations, was that “Rock oil originates as tiny bodies of animals buried in the sediments which, under the influence of increased temperature and pressure acting during an unimaginably long period of time, transform into rock oil.”

Two and a half centuries later, Lomonosov’s theory remains as it was in 1757 — an unproved, and almost entirely speculative, hypothesis. Returning once again to the Wall Street Journal, we find that, “Although the world has been drilling for oil for generations, little is known about the nature of the resource or the underground activities that led to its creation.” A paragraph in the Encyclopedia Britannica concerning the origins of oil ends thusly: “In spite of the great amount of scientific research … there remain many unresolved questions regarding its origins.”

Does that not seem a little odd? We are talking here, after all, about a resource that, by all accounts, plays a crucial role in a vast array of human endeavors (by one published account, petroleum is a raw ingredient in some 70,000 manufactured products, including medicines, synthetic fabrics, fertilizers, paints and varnishes, acrylics, plastics, and cosmetics). By many accounts, the very survival of the human race is entirely dependent on the availability of petroleum. And yet we know almost nothing about this most life-sustaining of the earth’s resources. And even though, by some shrill accounts, the well is about to run dry, no one seems to be overly concerned with understanding the nature and origins of so-called ‘fossil fuels.’ We are, rather, content with continuing to embrace an unproved 18th century theory that, if subjected to any sort of logical analysis, seems ludicrous.

On September 26, 1995, the New York Times ran an article headlined “Geochemist Says Oil Fields May Be Refilled Naturally.” Penned by Malcolm W. Browne, the piece appeared on page C1.

Could it be that many of the world’s oil fields are refilling themselves at nearly the same rate they are being drained by an energy hungry world? A geochemist at the Woods Hole Oceanographic Institution in Massachusetts … Dr. Jean K. Whelan … infers that oil is moving in quite rapid spurts from great depths to reservoirs closer to the surface. Skeptics of Dr. Whelan’s hypothesis … say her explanation remains to be proved …
Discovered in 1972, an oil reservoir some 6,000 feet beneath Eugene Island 330 [not actually an island, but a patch of sea floor in the Gulf of Mexico] is one of the world’s most productive oil sources … Eugene Island 330 is remarkable for another reason: it’s estimated reserves have declined much less than experts had predicted on the basis of its production rate.

“It could be,” Dr. Whelan said, “that at some sites, particularly where there is a lot of faulting in the rock, a reservoir from which oil is being pumped might be a steady-state system — one that is replenished by deeper reserves as fast as oil is pumped out” …
The discovery that oil seepage is continuous and extensive from many ocean vents lying above fault zones has convinced many scientists that oil is making its way up through the faults from much deeper deposits …

A recent report from the Department of Energy Task Force on Strategic Energy Research and Development concluded from the Woods Hole project that “there new data and interpretations strongly suggest that the oil and gas in the Eugene Island field could be treated as a steady-state rather than a fixed resource.”
The report added, “Preliminary analysis also suggest that similar phenomena may be taking place in other producing areas, including the deep-water Gulf of Mexico and the Alaskan North Slope” …

There is much evidence that deep reserves of hydrocarbon fuels remain to be tapped.

This compelling article raised a number of questions, including: how did all those piles of dinosaur carcasses end up thousands of feet beneath the earth’s surface? How do finite reservoirs of dinosaur goo become “steady-state” resources? And how does the fossil fuel theory explain the continuous, spontaneous venting of gas and oil?

The Eugene Island story was revisited by the media three-and-a-half years later, by the Wall Street Journal (Christopher Cooper “Odd Reservoir Off Louisiana Prods Oil Experts to Seek a Deeper Meaning,” Wall Street Journal, April 16, 1999).
(http://www.oralchelation.com/faq/wsj4.htm)

Something mysterious is going on at Eugene Island 330.
Production at the oil field, deep in the Gulf of Mexico off the coast of Louisiana, was supposed to have declined years ago. And for a while. it behaved like any normal field: Following its 1973 discovery, Eugene Island 330’s output peaked at about 15,000 barrels a day. By 1989, production had slowed to about 4,000 barrels a day.
Then suddenly — some say almost inexplicably — Eugene Island’s fortunes reversed. The field, operated by PennzEnergy Co., is now producing 13,000 barrels a day, and probable reserves have rocketed to more than 400 million barrels from 60 million. Stranger still, scientists studying the field say the crude coming out of the pipe is of a geological age quite different from the oil that gushed 10 years ago.

All of which has led some scientists to a radical theory: Eugene Island is rapidly refilling itself, perhaps from some continuous source miles below the Earth’s surface. That, they say, raises the tantalizing possibility that oil may not be the limited resource it is assumed to be.

… Jean Whelan, a geochemist and senior researcher from the Woods Hole Oceanographic Institution in Massachusetts … says, “I believe there is a huge system of oil just migrating” deep underground.

… About 80 miles off the Louisiana coast, the underwater landscape surrounding Eugene Island is otherworldly, cut with deep fissures and faults that spontaneously belch gas and oil.

So now we are talking about a huge system of migrating dinosaur goo that is miles beneath the Earth’s surface! Those dinosaurs were rather crafty, weren’t they? Exactly three years later (to the day), the media once again paid a visit to the Gulf of Mexico. This time, it was Newsday that filed the report (Robert Cooke “Oil Field’s Free Refill,” Newsday, April 19, 2002).

(http://csf.colorado.edu/forums/pkt/2002II/msg00071.html)

Deep underwater, and deeper underground, scientists see surprising hints that gas and oil deposits can be replenished, filling up again, sometimes rapidly.
Although it sounds too good to be true, increasing evidence from the Gulf of Mexico suggests that some old oil fields are being refilled by petroleum surging up from deep below, scientists report. That may mean that current estimates of oil and gas abundance are far too low.

… chemical oceanographer Mahlon “Chuck” Kennicutt [said] “They are refilling as we speak. But whether this is a worldwide phenomenon, we don’t know” …

Kennicutt, a faculty member at Texas A&M University, said it is now clear that gas and oil are coming into the known reservoirs very rapidly in terms of geologic time. The inflow of new gas, and some oil, has been detectable in as little as three to 10 years. In the past, it was not suspected that oil fields can refill because it was assumed that oil was formed in place, or nearby, rather than far below.

According to marine geologist Harry Roberts, at Louisiana State University … “You have a very leaky fault system that does allow it (petroleum) to migrate in. It’s directly connected to an oil and gas generating system at great depth.”

… “There already appears to be a large body of evidence consistent with … oil and gas generation and migration on very short time scales in many areas globally” [Jean Whelan] wrote in the journal Sea Technology

Analysis of the ancient oil that seems to be coming up from deep below in the Gulf of Mexico suggests that the flow of new oil “is coming from deeper, hotter [sediment] formations” and is not simply a lateral inflow from the old deposits that surround existing oil fields, [Whelan] said.

Now I’m really starting to get confused. Can someone please walk me through this? What exactly is an “oil and gas generating system”? And how does such a system generate oil “on very short time scales”? Is someone down there right now, even as I type these words, forklifting dinosaur carcasses into some gigantic cauldron to cook up a fresh batch of oil?

Desperate for answers to such perplexing questions, I turned for advice to Mr. Peak Oil himself, Michael Ruppert, and this is what I found: “oil … is the result of climactic conditions that have existed at only one time in the earth’s 4.5 billion year history.” I’m guessing that that “one time” – that one golden window of opportunity to get just the right mix of dinosaur stew – isn’t the present time, so it doesn’t seem quite right, to me at least, that oil is being generated right now.

In June 2003, Geotimes paid a visit to the Gulf of Mexico (“Raining Hydrocarbons in the Gulf”), and the story grew yet more compelling.
(http://www.geotimes.org/june03/NN_gulf.html)

Below the Gulf of Mexico, hydrocarbons flow upward through an intricate network of conduits and reservoirs … and this is all happening now, not millions and millions of years ago, says Larry Cathles, a chemical geologist at Cornell University.

“We’re dealing with this giant flow-through system where the hydrocarbons are generating now, moving through the overlying strata now, building the reservoirs now and spilling out into the ocean now,” Cathles says.

… Cathles and his team estimate that in a study area of about 9,600 square miles off the coast of Louisiana [including Eugene Island 330], source rocks a dozen kilometers [roughly seven miles] down have generated as much as 184 billion tons of oil and gas — about 1,000 billion barrels of oil and gas equivalent. “That’s 30 percent more than we humans have consumed over the entire petroleum era,” Cathles say. “And that’s just this one little postage stamp area; if this is going on worldwide, then there’s a lot of hydrocarbons venting out.”

Dry oil wells spontaneously refilling? Oil generation and migration systems? Massive oil reserves miles beneath the earth’s surface? Spontaneous venting of enormous volumes of gas and oil? (Roberts noted that – and this isn’t really going to please the environmentalists, but I’m just reporting the facts, ma’am – “natural seepage” in areas like the Gulf of Mexico “far exceeds anything that gets spilled” by the oil industry. And those natural emissions have been pumped into our oceans since long before there was an oil industry.)

The all too obvious question here is: how is any of that explained by a theory that holds that oil and gas are ‘fossil fuels’ created in finite quantities through a unique geological process that occurred millions of years ago?

Why do we insist on retaining an antiquated theory that is so obviously contradicted by readily observable phenomena? Is the advancement of the sciences not based on formulating a hypothesis, and then testing that hypothesis? And if the hypothesis fails to account for the available data, is it not customary to either modify that hypothesis or formulate a new hypothesis — rather than, say, clinging to the same discredited hypothesis for 250 years?

In August 2002, the journal Proceedings of the National Academy of Sciences published a study authored by J.F. Kenney, V.A. Kutchenov, N.A. Bendeliani and V.A. Alekseev. The authors argued, quite compellingly, that oil is not created from organic compounds at the temperatures and pressures found close to the surface of the earth, but rather is created from inorganic compounds at the extreme temperatures and pressures present only near the core of the earth.
(http://www.gasresources.net/index.htm)

As Geotimes noted (“Inorganic Origin of Oil: Much Ado About Nothing?,” Geotimes, November 2002), the journal “published the paper at the request of Academy member Howard Reiss, a chemical physicist at the University of California at Los Angeles. As per the PNAS guidelines for members communicating papers, Reiss obtained reviews of the paper from at least two referees from different institutions (not affiliated with the authors) and shepherded the report through revisions.”
(http://www.geotimes.org/nov02/NN_oil.html)

I mention that because I happened to read something that Michael Ruppert wrote recently that seems pertinent: “In real life, it is called ‘the proof is in the pudding.’ In scientific circles, it is called peer review, and it usually involves having your research published in a peer-reviewed journal. It is an often-frustrating process, but peer-reviewed articles ensure the validity of science.”
(http://www.fromthewilderness.com/free/ww3/052703_9_questions.html)

It would seem then that we can safely conclude that what Kenney, et. al. have presented is valid science, since it definitely was published in a peer-reviewed journal. And what that valid science says, quite clearly, is that petroleum is not by any stretch of the imagination a finite resource, or a ‘fossil fuel,’ but is in fact a resource that is continuously generated by natural processes deep within the planet.

Geotimes also noted that the research paper “examined thermodynamic arguments that say methane is the only organic hydrocarbon to exist within Earth’s crust.” Indeed, utilizing the laws of modern thermodynamics, the authors constructed a mathematical model that proves that oil can not form under the conditions dictated by the ‘fossil fuel’ theory.

I mention that because of something else I read on Ruppert’s site. Listed as #5 of “Nine Critical Questions to Ask About Alternative Energy” is: “Most of the other questions in this list can be tied up into this one question: does the invention defy the Laws of Thermodynamics? If the answer is yes, then something is wrong.”
(http://www.fromthewilderness.com/free/ww3/052703_9_questions.html)

Well then, Mr. Ruppert, I have some very bad news for you, because something definitely is wrong — with your ‘Peak Oil’ theory. Because here we have a published study, subjected to peer review (thus assuring the “validity” of the study), that demonstrates, with mathematical certainty, that it is actually the ‘fossil fuel’ theory that defies the laws of thermodynamics. It appears then that if we follow Ruppert’s Laws, we have to rule out fossil fuels as a viable alternative to petroleum.

Reaction to the publication of the Kenney study was swift. First to weigh in was Nature (Tom Clarke “Fossil Fuels Without the Fossils: Petroleum: Animal, Vegetable or Mineral?,” Nature News Service, August 14, 2002).

Petroleum – the archetypal fossil fuel – couldn’t have formed from the remains of dead animals and plants, claim US and Russian researchers. They argue that petroleum originated from minerals at extreme temperatures and pressures.

Other geochemists say that the work resurrects a scientific debate that is almost a fossil itself, and criticize the team’s conclusions.

The team, led by J.F. Kenney of the Gas Resources Corporation in Houston, Texas, mimicked conditions more than 100 kilometres below the earth’s surface by heating marble, iron oxide and water to around 1500° C and 50,000 times atmospheric pressure.

They produced traces of methane, the main constituent of natural gas, and octane, the hydrocarbon molecule that makes petrol. A mathematical model of the process suggests that, apart from methane, none of the ingredients of petroleum could form at depths less than 100 kilometres.

The geochemist community, and the petroleum industry, were both suitably outraged by the publication of the study. The usual parade of experts was trotted out, of course, but a funny thing happened: as much as they obviously wanted to, those experts were unable to deny the validity of the research. So they resorted to a very unusual tactic: they reluctantly acknowledged that oil can indeed be created from minerals, but they insisted that that inconvenient fact really has nothing to do with the oil that we use.

Showing that oil can also form without a biological origin does not disprove [the ‘fossil fuel’] hypothesis. “It doesn’t discredit anything,” said a geochemist who asked not to be named.

… “No one disputes that hydrocarbons can form this way,” says Mark McCaffrey, a geochemist with Oil Tracers LLC, a petroleum-prospecting consultancy in Dallas, Texas. A tiny percentage of natural oil deposits are known to be non-biological, but this doesn’t mean that petrol isn’t a fossil fuel, he says.

“I don’t know anyone in the petroleum community who really takes this prospect seriously,” says Walter Michaelis, a geochemist at the University of Hamburg in Germany.

So I guess the geochemist community is a petulant lot. They did “concede,” however, that oil “that forms inorganically at the high temperatures and massive pressures close to the Earth’s mantle layer could be forced upwards towards the surface by water, which is denser than oil. It can then be trapped by sedimentary rocks that are impermeable to oil.”

What they were acknowledging, lest anyone misunderstand, is that the oil that we pump out of reservoirs near the surface of the earth, and the oil that is spontaneously and continuously generated deep within the earth, could very well be the same oil. But even so, they insist, that is certainly no reason to abandon, or even question, our perfectly ridiculous ‘fossil fuel’ theory.

Coverage by New Scientist of the ‘controversial’ journal publication largely mirrored the coverage by Nature (Jeff Hecht “You Can Squeeze Oil Out of a Stone,” New Scientist, August 17, 2002).

Oil doesn’t come from dead plants and animals, but from plain old rock, a controversial new study claims.
The heat and pressure a hundred kilometres underground produces hydrocarbons from inorganic carbon and water, says J.F. Kenney, who runs the Gas Resources Corporation, an oil exploration firm in Houston. He and three Russian colleagues believe all our oil is made this way, and untapped supplies are there for the taking.
Petroleum geologists already accept that some oil forms like this. “Nobody ever argued that there are no inorganic sources,” says Mike Lewan of the US Geological Survey. But they take strong issue with Kenney’s claim that petroleum can’t form from organic matter in shallow rocks.

Geotimes chimed in as well, quoting Scott Imbus, an organic geochemist for Chevron Texaco Corp., who explained that the Kenney research is “an excellent and rigorous treatment of the theoretical and experimental aspects for abiotic hydrocarbon formation deep in the Earth. Unfortunately, it has little or nothing to do with the origins of commercial fossil fuel deposits.”

What we have here, quite clearly, is a situation wherein the West’s leading geochemists (read: shills for the petroleum industry) cannot impugn the validity of Kenney’s unassailable mathematical model, and so they have, remarkably enough, adopted the unusual strategy of claiming that there is actually more than one way to produce oil. It can be created under extremely high temperatures and pressures, or it can be created under relatively low temperatures and pressures. It can be created organically, or it can be created inorganically. It can be created deep within the Earth, or it can be created near the surface of the Earth. You can make it with some rocks. Or you can make it in a box. You can make it here or there. You can make it anywhere.

While obviously an absurdly desperate attempt to salvage the ‘fossil fuel’ theory, the arguments being offered by the geochemist community actually serve to further undermine the notion that oil is an irreplaceable ‘fossil fuel.’ For if we are now to believe that petroleum can be created under a wide range of conditions (a temperature range, for example, of 75° C to 1500° C), does that not cast serious doubt on the claim that conditions favored the creation of oil just “one time in the earth’s 4.5 billion year history”?

A more accurate review of Kenney’s work appeared in The Economist (“The Argument Needs Oiling,” The Economist, August 15, 2002).

Millions of years ago, tiny animals and plants died. They settled at the bottom of the oceans. Over time, they were crushed beneath layers of sediment that built up above them and eventually turned into rock. The organic matter, now trapped hundreds of metres below the surface, started to change. Under the action of gentle heat and pressure, and in the absence of air, the biological debris turned into oil and gas. Or so the story goes.

In 1951, however, a group of Soviet scientists led by Nikolai Kudryavtsev claimed that this theory of oil production was fiction. They suggested that hydrocarbons, the principal molecular constituents of oil, are generated deep within the earth from inorganic materials. Few people outside Russia listened. But one who did was J. F. Kenney, an American who today works for the Russian Academy of Sciences and is also chief executive of Gas Resources Corporation in Houston, Texas. He says it is nonsense to believe that oil derives from “squashed fish and putrefied cabbages.” This is a brave claim to make when the overwhelming majority of petroleum geologists subscribe to the biological theory of origin. But Dr Kenney has evidence to support his argument.

In this week’s Proceedings of the National Academy of Sciences, he claims to establish that it is energetically impossible for alkanes, one of the main types of hydrocarbon molecule in crude oil, to evolve from biological precursors at the depths where reservoirs have typically been found and plundered. He has developed a mathematical model incorporating quantum mechanics, statistics and thermodynamics which predicts the behaviour of a hydrocarbon system. The complex mixture of straight-chain and branched alkane molecules found in crude oil could, according to his calculations, have come into existence only at extremely high temperatures and pressures—far higher than those found in the earth’s crust, where the orthodox theory claims they are formed.

To back up this idea, he has shown that a cocktail of alkanes (methane, hexane, octane and so on) similar to that in natural oil is produced when a mixture of calcium carbonate, water and iron oxide is heated to 1,500° C and crushed with the weight of 50,000 atmospheres. This experiment reproduces the conditions in the earth’s upper mantle, 100 km below the surface, and so suggests that oil could be produced there from completely inorganic sources.

Kenney’s theories, when discussed at all, are universally described as “new,” “radical,” and “controversial.” In truth, however, Kenney’s ideas are not new, nor original, nor radical. Though no one other than Kenney himself seems to want to talk about it, the arguments that he presented in the PNAS study are really just the tip of a very large iceberg of suppressed scientific research.

This story really begins in 1946, just after the close of World War II, which had illustrated quite effectively that oil was integral to waging modern, mechanized warfare. Stalin, recognizing the importance of oil, and recognizing also that the Soviet Union would have to be self sufficient, launched a massive scientific undertaking that has been compared, in its scale, to the Manhattan Project. The goal of the Soviet project was to study every aspect of petroleum, including how it is created, how reserves are generated, and how to best pursue petroleum exploration and extraction.

The challenge was taken up by a wide range of scientific disciplines, with hundreds of the top professionals in their fields contributing to the body of scientific research. By 1951, what has been called the Modern Russian-Ukrainian Theory of Deep, Abiotic Petroleum Origins was born. A healthy amount of scientific debate followed for the next couple of decades, during which time the theory, initially formulated by geologists, based on observational data, was validated through the rigorous quantitative work of chemists, physicists and thermodynamicists. For the last couple of decades, the theory has been accepted as established fact by virtually the entire scientific community of the (former) Soviet Union. It is backed up by literally thousands of published studies in prestigious, peer-reviewed scientific journals.

For over fifty years, Russian and Ukrainian scientists have added to this body of research and refined the Russian-Ukrainian theories. And for over fifty years, not a word of it has been published in the English language (except for a fairly recent, bastardized version published by astronomer Thomas Gold, who somehow forgot to credit the hundreds of scientists whose research he stole and then misrepresented).

This is not, by the way, just a theoretical model that the Russians and Ukrainians have established; the theories were put to practical use, resulting in the transformation of the Soviet Union – once regarded as having limited prospects, at best, for successful petroleum exploration – into a world-class petroleum producing, and exporting, nation.

J.F. Kenney spent some 15 years studying under some of the Russian and Ukrainian scientists who were key contributors to the modern petroleum theory. When Kenney speaks about petroleum origins, he is not speaking as some renegade scientist with a radical new theory; he is speaking to give voice to an entire community of scientists whose work has never been acknowledged in the West. Kenney writes passionately about that neglected body of research:

The modern Russian-Ukrainian theory of deep, abiotic petroleum origins is not new or recent. This theory was first enunciated by Professor Nikolai Kudryavtsev in 1951, almost a half century ago, (Kudryavtsev 1951) and has undergone extensive development, refinement, and application since its introduction. There have been more than four thousand articles published in the Soviet scientific journals, and many books, dealing with the modern theory. This writer is presently co-authoring a book upon the subject of the development and applications of the modern theory of petroleum for which the bibliography requires more than thirty pages.

The modern Russian-Ukrainian theory of deep, abiotic petroleum origins is not the work of any one single man — nor of a few men. The modern theory was developed by hundreds of scientists in the (now former) U.S.S.R., including many of the finest geologists, geochemists, geophysicists, and thermodynamicists of that country. There have now been more than two generations of geologists, geophysicists, chemists, and other scientists in the U.S.S.R. who have worked upon and contributed to the development of the modern theory. (Kropotkin 1956; Anisimov, Vasilyev et al. 1959; Kudryavtsev 1959; Porfir’yev 1959; Kudryavtsev 1963; Raznitsyn 1963; Krayushkin 1965; Markevich 1966; Dolenko 1968; Dolenko 1971; Linetskii 1974; Letnikov, Karpov et al. 1977; Porfir’yev and Klochko 1981; Krayushkin 1984)

The modern Russian-Ukrainian theory of deep, abiotic petroleum origins is not untested or speculative. On the contrary, the modern theory was severely challenged by many traditionally-minded geologists at the time of its introduction;  and during the first decade thenafter, the modern theory was thoroughly examined, extensively reviewed, powerfully debated, and rigorously tested. Every year following 1951, there were important scientific conferences organized in the U.S.S.R. to debate and evaluate the modern theory, its development, and its predictions. The All-Union conferences in petroleum and petroleum geology in the years 1952-1964/5 dealt particularly with this subject. (During the period when the modern theory was being subjected to extensive critical challenge and testing, a number of the men pointed out that there had never been any similar critical review or testing of the traditional hypothesis that petroleum might somehow have evolved spontaneously from biological detritus.)

The modern Russian-Ukrainian theory of deep, abiotic petroleum origins is not a vague, qualitative hypothesis, but stands as a rigorous analytic theory within the mainstream of the modern physical sciences. In this respect, the modern theory differs fundamentally not only from the previous hypothesis of a biological origin of petroleum but also from all traditional geological hypotheses. Since the nineteenth century, knowledgeable physicists, chemists, thermodynamicists, and chemical engineers have regarded with grave reservations (if not outright disdain) the suggestion that highly reduced hydrocarbon molecules of high free enthalpy (the constituents of crude oil) might somehow evolve spontaneously from highly oxidized biogenic molecules of low free enthalpy. Beginning in 1964, Soviet scientists carried out extensive theoretical statistical thermodynamic analysis which established explicitly that the hypothesis of evolution of hydrocarbon molecules (except methane) from biogenic ones in the temperature and pressure regime of the Earth’s near-surface crust was glaringly in violation of the second law of thermodynamics. They also determined that the evolution of reduced hydrocarbon molecules requires pressures of magnitudes encountered at depths equal to such of the mantle of the Earth. During the second phase of its development, the modern theory of petroleum was entirely recast from a qualitative argument based upon a synthesis of many qualitative facts into a quantitative argument based upon the analytical arguments of quantum statistical mechanics and thermodynamic stability theory. (Chekaliuk 1967; Boiko 1968; Chekaliuk 1971; Chekaliuk and Kenney 1991; Kenney 1995) With the transformation of the modern theory from a synthetic geology theory arguing by persuasion into an analytical physical theory arguing by compulsion, petroleum geology entered the mainstream of modern science.

The modern Russian-Ukrainian theory of deep, abiotic petroleum origins is not controversial nor presently a matter of academic debate. The period of debate about this extensive body of knowledge has been over for approximately two decades (Simakov 1986). The modern theory is presently applied extensively throughout the former U.S.S.R. as the guiding perspective for petroleum exploration and development projects. There are presently more than 80 oil and gas fields in the Caspian district alone which were explored and developed by applying the perspective of the modern theory and which produce from the crystalline basement rock.
(Krayushkin, Chebanenko et al. 1994) Similarly, such exploration in the western Siberia cratonic-rift sedimentary basin has developed 90 petroleum fields of which 80 produce either partly or entirely from the crystalline basement. The exploration and discoveries of the 11 major and 1 giant fields on the northern flank of the Dneiper-Donets basin have already been noted. There are presently deep drilling exploration projects under way in Azerbaijan, Tatarstan, and Asian Siberia directed to testing potential oil and gas reservoirs in the crystalline basement.
(http://www.gasresources.net/index.htm)

It appears that, unbeknownst to Westerners, there have actually been, for quite some time now, two competing theories concerning the origins of petroleum. One theory claims that oil is an organic ‘fossil fuel’ deposited in finite quantities near the planet’s surface. The other theory claims that oil is continuously generated by natural processes in the Earth’s magma. One theory is backed by a massive body of research representing fifty years of intense scientific inquiry. The other theory is an unproven relic of the eighteenth century. One theory anticipates deep oil reserves, refillable oil fields, migratory oil systems, deep sources of generation, and the spontaneous venting of gas and oil. The other theory has a difficult time explaining any such documented phenomena.

So which theory have we in the West, in our infinite wisdom, chosen to embrace? Why, the fundamentally absurd ‘Fossil Fuel’ theory, of course — the same theory that the ‘Peak Oil’ doomsday warnings are based on.

I am sorry to report here, by the way, that in doing my homework, I never did come across any of that “hard science” documenting ‘Peak Oil’ that Mr. Strahl referred to. All the ‘Peak Oil’ literature that I found, on Ruppert’s site and elsewhere, took for granted that petroleum is a non-renewable ‘fossil fuel.’ That theory is never questioned, nor is any effort made to validate it. It is simply taken to be an established scientific fact, which it quite obviously is not.

So what do Ruppert and his resident experts have to say about all of this? Dale Allen Pfeiffer, identified as the “FTW Contributing Editor for Energy,” has written: “There is some speculation that oil is abiotic in origin — generally asserting that oil is formed from magma instead of an organic origin. These ideas are really groundless.”
(http://www.fromthewilderness.com/free/ww3/04_04_02_oil_recession.html)

Here is a question that I have for both Mr. Ruppert and Mr. Pfeiffer: Do you consider it honest, responsible journalism to dismiss a fifty year body of multi-disciplinary scientific research, conducted by hundreds of the world’s most gifted scientists, as “some speculation”?

Another of FTW’s prognosticators, Colin Campbell, is described by Ruppert as “perhaps the world’s foremost expert on oil.” He was asked by Ruppert, in an interview, “what would you say to the people who insist that oil is created from magma …?” Before we get to Campbell’s answer, we should first take note of the tone of Ruppert’s question. It is not really meant as a question at all, but rather as a statement, as in “there is really nothing you can say that will satisfy these nutcases who insist on bringing up these loony theories.”
(http://www.fromthewilderness.com/free/ww3/102302_campbell.html)

Campbell’s response to the question was an interesting one: “No one in the industry gives the slightest credence to these theories.” Why, one wonders, did Mr. Campbell choose to answer the question on behalf of the petroleum industry? And does it come as a surprise to anyone that the petroleum industry doesn’t want to acknowledge abiotic theories of petroleum origins? Should we have instead expected something along these lines?:

“Hey, everybody … uhhh … you know how we always talked about oil being a fossil fuel? And … uhmm … you know how the entire profit structure of our little industry here is built upon the presumption that oil is a non-renewable, and therefore very valuable, resource*? And remember all those times we talked about shortages so that we could gouge you at the pumps? Well … guess what, America? You’ve been Punk’d!”

For the sake of accuracy, I think we need to modify Mr. Campbell’s response, because it should probably read: no one in the petroleum industry will publicly admit giving any credence to abiotic theories. But is there really any doubt that those who own and control the oil industry are well aware of the true origins of oil? How could they not be?

Surely there must be a reason why there appears to be so little interest in understanding the nature and origins of such a valuable, and allegedly vanishing, resource. And that reason can only be that the answers are already known. The objective, of course, is to ensure that the rest of us don’t find those answers. Why else would we be encouraged, for decades, to cling tenaciously to a scientific theory that can’t begin to explain the available scientific evidence? And why else would a half-century of research never see the light of day in Western scientific and academic circles?

Maintaining the myth of scarcity, you see, is all important. Without it, the house of cards comes tumbling down. And yet, even while striving to preserve that myth, the petroleum industry will continue to provide the oil and gas needed to maintain a modern industrial infrastructure, long past the time when we should have run out of oil. And needless to say, the petroleum industry will also continue to reap the enormous profits that come with the myth of scarcity.

How will that difficult balancing act be performed? That is where, it appears, the ‘limited hangout’ concerning abiotic oil will come into play.

Perhaps the most telling quote to emerge from all of this came from Roger Sassen, identified as the deputy director of Resource Geosciences, a research group out of Texas A&M University: “The potential that inorganic hydrocarbons, especially methane and a few other gasses, might exist at enormous depth in the crust is an idea that could use a little more discussion. However, not from people who take theories to the point of absurdity. This is an idea that needs to be looked into at some point as we start running out of energy. But no one who is objective discusses the issue at this time.”

The key point there (aside from Sassen’s malicious characterization of Kenney) is his assertion that no one is discussing abiotic oil at this time. And why is that? Because, you see, we first have to go through the charade of pretending that the world has just about run out of ‘conventional’ oil reserves, thus justifying massive price hikes, which will further pad the already obscenely high profits of the oil industry. Only then will it be fully acknowledged that there is, you know, that ‘other’ oil.

“We seem to have plum run out of that fossil fuel that y’all liked so much, but if you want us to, we could probably find you some mighty fine inorganic stuff. You probably won’t even notice the difference. The only reason that we didn’t mention it before is that – and may God strike me dead if I’m lying – it is a lot more work for us to get to it. So after we charged you up the wazoo for the ‘last’ of the ‘conventional’ oil, we’re now gonna have to charge you even more for this really ‘special’ oil. And with any luck at all, none of you will catch on that it’s really the same oil.”

And that, dear readers, is how I see this little game playing out. Will you be playing along?

May 25, 2011 Posted by | Deception, Mainstream Media, Warmongering, Malthusian Ideology, Phony Scarcity, Wars for Israel | 4 Comments

The myth of oil as a dwindling resource

By Bruce Everett | August 18, 2008

Obama tells us in his Lansing speech:

We know that we cannot sustain a future powered by a fuel that is rapidly disappearing. … Not when the rapid growth of countries like China and India mean that we’re consuming more of this dwindling resource faster than we ever imagined. We know that we can’t sustain this kind of future.

Natural resources are limited by definition, but how limited? At the time of the Trojan War, the Greeks relied on bronze, an alloy of copper and tin, for their armor and swords. With limited technology, the Greeks mined surface deposits of copper with very primitive techniques. There is archeological evidence that Europeans were recycling bronze, normally an indication of high prices, as early as 4,000 years ago.

World copper production has been increasing more or less continuously for at least 6,000 years. Since 1900, annual global copper output has increased by a factor of 300. Why haven’t we run out of this limited resource? The answer is that resource economics are a race between depletion and technology. Technology can win over very long periods of time, in this case thousands of years. We have moved from searching for surface concentrations of copper to mining ore deposits containing less than 1% copper at an altitude of 14,000 feet in Chile.

When people talk about limited oil resources, they tend to mean proven reserves of conventional oil – a very limited definition referring to oil deposits that have been identified and can be recovered with 90% certainty with today’s prices and technology. But the world is full of hydrocarbons that we just haven’t figured out how to produce yet.

Estimates of proven conventional oil reserves are around 2 trillion barrels (42 gallons per barrel), and we’ve already used about half that amount. At our current consumption rate of 85 million barrels per day, we have about 32 years’ of supply left. If oil production continues to increase, this time period will get shorter. Pretty scary, right?

Not necessarily. First, we haven’t discovered all the conventional oil yet. The US Geological Survey estimates that another 2½ trillion barrels are yet to be discovered. That would give us over 110 years of supply.

We also have large amounts of what is known as “unconventional” oil – heavy oil in tar sands and other formations located primarily in Canada and Venezuela. We’re starting to access these resources using a combination of mining and oil production techniques, and the resource is very large – at least another 4½ trillion barrels – taking our potential supply to over 250 years. And we’re not done yet.

Shale oil, a primitive form of petroleum generally locked in tight rock formations, is estimated at another 2½ trillion barrels. And most of it is in the United States. We also have 4½ trillion barrels worth of coal and 2½ trillion barrels of natural gas, both of which can be converted into liquid fuels with known technologies. That gives over 500 years of hydrocarbons, not including such exotic resources as methane hydrates (natural gas locked in an ice matrix on the ocean floor) which could be over 30 trillion barrels in the US alone.

It is certainly true that we don’t know how to access these new resources yet without environmental damage or prohibitive cost. We also, however, do not yet know how to produce solar or wind power economically. Technology is an enormously powerful force, and it is a major shaper of our society. If history is any guide, we will find better ways in the future of not only accessing available hydrocarbons but of mitigating the environmental impacts.

I have often offered my students “Everett’s hypothesis” which states that at any time in human history, proven reserves of essential materials tend to grow to about 30 years’ supply and no more. Why? Because the discounted future value of anything more than 30 years in the future is very small, and hence not worth much time and effort. This hypothesis is unprovable, but, if true, suggests that available resources would have appeared “unsustainable” at any point in human history if we assume no continuous technological development.

My personal guess? The world will consume more hydrocarbons a hundred years from now than it does today at a lower real price and with less environmental impact.

May 24, 2011 Posted by | Malthusian Ideology, Phony Scarcity, Timeless or most popular | 1 Comment

Are Rising Oil and Food Prices a Scam?

By Danny Schechter | Consortium News | April 19, 2011

The global economy and its recovery, and the living standards of millions of plain folks, are now at risk from the sudden rise in oil and commodity prices.

Gas at the pump is up, and going higher. Food prices are following. The consequences are catastrophic for the global poor as their costs go up while their income doesn’t.

It’s menacing American workers too, who in large part have not seen a meaningful raise since the days of Reagan (keeping it this way is clearly behind the current flurry of attacks on unions).

Already, unrest in the Middle East and many African countries is being blamed for these dramatic increases. It seems as if this threat to global stability is being largely ignored in our media, one that treats the oil business as just another mystical world of free market trading.

Why is it happening? Why all the volatility? Is oil getting scarcer, leading to price increases? Is the cost of food, similarly, a reflection of naturally increasing commodity prices?

While it’s true that natural disasters and droughts play some role in this unchecked price inflation, it also seems apparent that something else is attracting increasing attention, even if most of our media fails to explore what is a political time bomb while most political leaders shrug their shoulders and ignore it.

President Obama recently said there is nothing he can do about the hike in oil and food prices. But critics say the problem is that government and media alike refuse to recognize what’s really going on: unchecked speculation!

Not everyone buys into this suspicion. In fact, it is one of the more intense subjects of debate in economics.

Princeton University economist Paul Krugman pooh-poohs the impact of speculation, counter-posing the traditional argument that oil prices are set by supply and demand.

The Economist magazine agrees, summing up its views with a pithy phrase, “Speculation does not drive the oil price. Driving does.”

Others, like oil industry analyst Michael Klare of Hampshire College, see demand outdistancing supply:

“Consider the recent rise in the price of oil just a faint and early tremor heralding the oilquake to come. Oil won’t disappear from international markets, but in the coming decades it will never reach the volumes needed to satisfy projected world demand, which means that, sooner rather than later, scarcity will become the dominant market condition.”

Usually you hear this debate in scholarly circles or read it in political tracts where orthodox views collide with more alarmist projections about the oil supply “peaking.”

But officials in the Third World don’t see the subject as academic. Reserve Bank of India Governor Duvvuri Subbarao charges, “Speculative movements in commodity derivative markets are also causing volatility in prices.”

The World Bank is meeting on this issue this week because it is seen as a matter of “utmost urgency.”

“The price of food is a matter of life and death for the very poorest people in the world,” said Tom Arnold, CEO of Concern Worldwide, the international humanitarian agency, ahead of his participation at The Open Forum on Food at World Bank headquarters.

He adds, “with many families spending up to 80 percent of their income on basic foods to survive, even the slightest increase in price can have devastating effects and become a crises for the poorest.”

Journalist Josh Clark argues on the website “How Stuff Works” that much of the oil speculation is rooted in the financial crisis. He wrote:

“The next time you drive to the gas station, only to find prices are still sky high compared to just a few years ago, take notice of the rows of foreclosed houses you’ll pass along the way. They may seem like two parts of a spell of economic bad luck, but high gas prices and home foreclosures are actually very much interrelated.

“Before most people were even aware there was an economic crisis, investment managers abandoned failing mortgage-backed securities and looked for other lucrative investments. What they settled on was oil futures.”

The debate within the industry is more subdued, perhaps to avoid a public fight between suppliers and distributors who don’t want to rock the boat.

But some officials like Dan Gilligan, president of the Petroleum Marketers Association, representing 8,000 retail and wholesale suppliers has spoken out. He argues:

“Approximately 60 to 70 percent of the oil contracts in the futures markets are now held by speculative entities. Not by companies that need oil, not by the airlines, not by the oil companies. But by investors who profit money from their speculative positions.”

Now, a prominent and popular market analyst is throwing caution to the wind by blowing the whistle on speculators.

Finance expert Phil Davis runs a website and widely read newsletter to monitor stocks and options trades. He’s a professional’s professional, whose grandfather taught him to buy stocks when he was just ten years old.

His website is Phil’s Stock World, and stocks are his world. He’s subtitled the site, “High Finance for Real People.”

He is usually a sober and calm analyst, not known as maverick or dissenter.

When I met Phil the other night, he was on fire, enraged by what he believes is the scam of the century that no one wants to talk about, because so many powerful people armed with legions of lawyers want unquestioning allegiance, and will sue you into silence.

He studies the oil/food issue carefully and has concluded, “It’s a scam folks, it’s nothing but a huge scam and it’s destroying the U.S. economy as well as the entire global economy but no one complains because they are ‘only’ stealing about $1.50 per gallon from each individual person in the industrialized world.”

“It’s the top 0.01 percent robbing the next 39.99 percent – the bottom 60 percent can’t afford cars anyway (they just starve quietly to death, as food prices climb on fuel costs).

“If someone breaks into your car and steals a $500 stereo, you go to the police, but if someone charges you an extra $30 every time you fill up your tank 50 times a year ($1,500) you shut up and pay your bill. Great system, right?”

Phil is just getting started, as he delves into the intricacies of the NYMEX market that handles these trades:

“The great thing about the NYMEX is that the traders don’t have to take delivery on their contracts, they can simply pay to roll them over to the next settlement price, even if no one is actually buying the barrels.

“That’s how we have developed a massive glut of 677 million barrels worth of contracts in the front four months on the NYMEX and, come rollover day – that will be the amount of barrels ‘on order’ for the front 3 months, unless a lot barrels get dumped at market prices fast.

“Keep in mind that the entire United States uses ‘just’ 18M barrels of oil a day, so 677M barrels is a 37-day supply of oil. But, we also make 9M barrels of our own oil and import ‘just’ 9M barrels per day, and 5M barrels of that is from Canada and Mexico who, last I heard, aren’t even having revolutions.

“So, ignoring North Sea oil, Brazil and Venezuela, and lumping Africa in with OPEC, we are importing 3Mbd from unreliable sources and there is a 225-day supply under contract for delivery at the current price or cheaper plus we have a Strategic Petroleum Reserve that holds another 727 million barrels (full) plus 370M barrels of commercial storage in the U.S. (also full) which is another 365.6 days of marginal oil already here in storage in addition to the 225 days under contract for delivery.“

These contracts for oil outnumber their actual delivery, a sign of speculation and market manipulation, as oil companies win government authorizations for wells but then don’t open them for exploration or exploitation.

It’s all a game of manipulating oil supply to keep prices up. And no one seems to be regulating it.

What Phil sees is a giant but intricate game of market manipulation and rigging by a cartel — not just an industry — that actually has loaded tankers criss-crossing the oceans but only landing when the price is right.

“There is nothing that the conga-line of tankers between here and OPEC would like to do more than unload an extra 277 Million barrels of crude at $112.79 per barrel (Friday’s close on open contracts and price).

“But, unfortunately, as I mentioned last week, Cushing, Oklahoma (where oil is stored) is already packed to the gills with oil and can only handle 45M barrels if it started out empty so it is, very simply, physically impossible for those barrels to be delivered.

“This did not, however, stop 287M barrels worth of May contracts from trading on Friday and GAINING $2.49 on the day. “

He asks, “Who is buying 287,494 contracts (1,000 barrels per contract) for May delivery that can’t possibly be delivered for $2.49 more than they were priced the day before? These are the kind of questions that you would think regulators would be asking – if we had any.”

The TV news magazine “60 Minutes” spoke with Dan Gilligan, who noted that investors don’t actually take delivery of the oil: “All they do is buy the paper, and hope that they can sell it for more than they paid for it. Before they have to take delivery.”

He says they make their fortunes “on the volatility that exists in the market. They make it going up and down.”

Payam Sharifi, at the University of Missouri-Kansas City, notes that even as the rise in oil prices threatens the world economy, there is almost total silence on the danger:

“This issue ought to be discussed again with a renewed interest – but the media and much of the populace at large have simply accepted high food and oil prices as an unavoidable fact of life, without any discussion of the causes of these price rises aside from platitudes.”

What can we do about that?

~

News Dissector Danny Schechter made the film Plunder The Crime of Our Time (Plunderthecrimeofourtime.com) on the financial crisis as a crime story. He wrote an introduction to the recent reissue of a classic two-volume expose of John D. Rockefeller’s The Standard Oil Company, one of the top ten works of investigative reporting in American history. (Cosimo Books) Comments to dissector@mediachannel.org

April 19, 2011 Posted by | Deception, Economics, Malthusian Ideology, Phony Scarcity | 2 Comments

Biofuels, Soaring Food Prices and Iowa

By ROBERT BRYCE | CounterPunch | February 25, 2011

When the chairman of the world’s largest food company says that using  food crops to make biofuels is “absolute madness,” sensible people should take heed.

Alas, President Obama, along with a Congress that is dominated by Big Ag interests, just doesn’t seem to care that Peter Brabeck, the chairman of the Swiss food giant, Nestle, made that very declaration last month. And that blithe ignorance of the madness of biofuels is resulting in some truly horrifying results. Here are the numbers: This year, the US corn ethanol sector will consume 40 percent of all US corn – that’s about 15 percent of global corn production or 5 percent of all global grain – in order to produce a volume of motor fuel with the energy equivalent of about 0.6 percent of global oil needs.

Congress not only lavishes subsidies on the corn ethanol scam, it has mandated the use of corn ethanol, and provided tariff protections to an industry that is helping push global food prices to all-time highs and shrink grain reserves at the very same time that global grain production is faltering and protests over food prices are commonplace.

The quantity of grain to be consumed this year for US ethanol production – 4.9 billion bushels – boggles the mind. That’s more than twice as much as all the corn produced in Brazil and more than six times as much as is grown in India. Put another way, that’s more corn than the output of the European Union, Mexico, Argentina, and India combined.

Despite these facts, last month, President Obama, in his State of the Union speech, said “we can break our dependence on oil with biofuels.” Meanwhile, the Iowa Caucus, the nation’s first presidential primary is now less than one year away. And Newt Gingrich, the former speaker of the US House, who’s dearly hoping that he can be a viable candidate for the 2012 Republican presidential nomination, was recently in Iowa cravenly wooing the ethanol producers and slamming “big city” critics of the ethanol industry. Alas, there’s little reason to expect much bravery out of Gingrich’s fellow Republicans on Capitol Hill. Speaker of the House John Boehner recently told reporters not to expect cuts to the ethanol subsidies because they are “not in the discretionary spending pot.”

While Obama prevaricates and Congress dithers, ethanol boosters are once again claiming that their sector has negligible effect on grain prices. Instead, they blame surging grain prices on, well, everything but their industry. To be sure, bad weather in Russia and Australia has cut grain harvest in those countries. In addition, rising demand for grain in the developing world is affecting prices.

But the events of the last few weeks — corn futures at near-record highs and social unrest related to food prices – are nearly identical to the mayhem that occurred in 2007 and 2008. Back then, at least 15 studies, including ones by Purdue University, the World Bank and the Congressional Research Service, exposed the link between increasing ethanol production and higher food prices. Soaring food prices led to violent protests in Egypt, Cameroon, Ivory Coast, Haiti, Mauritania, Ethiopia, Madagascar, the Philippines and Indonesia. And worries about adequate food stocks led several countries to ban food exports.

New studies are, once again, finding a direct link between the corn ethanol scam and higher food prices. In December, a study by two US agriculture economists, Thomas Elam and Steve Meyer, found that corn prices are being pushed dramatically higher by demand from the ethanol sector. Elam and Meyer, who have done consulting work for the meat industry, found that without the ethanol mandates, the average price of corn would now be lower by more than $2 per bushel. And they conclude that “biofuels policy has caused significant cost increases for all users of feedgrains.”

There are many unfortunate aspects to America’s corn ethanol insanity. But among the most unfortunate is that US policymakers were warned, and they were warned by the Rand Corporation, one of the most conservative defense-oriented think tanks in America. In May 2008, Rand Corporation issued a report which said that diverting corn to the ethanol sector was not only bad economics, but a security threat: “Using corn for ethanol is economically inefficient and has harmed US national security. Diverting corn from food to ethanol production has pushed up world market prices for grains and other foods, which, in 2008, resulted in riots in a number of developing countries.”

In recent weeks, we’ve seen food-price hikes and protests that are reminiscent of 2008. There have been food riots in Algeria and Mozambique. Last month, some 8,000 Jordanians protested in the streets of Amman and other cities to protest rising food prices. In Egypt, the world’s biggest wheat importer, wheat prices are up by 30 percent over the past 12 months. This week, protesters took to the streets in India to protest surging food costs.

The surging price of wheat is being stoked by rising corn prices, which have doubled over the past six months and are now at about $7 per bushel. “Higher corn prices always means higher wheat prices,” says Bill Lapp, president of Advanced Economic Solutions, an Omaha-based commodity consulting firm.

David Orden, a senior research fellow at the International Food Policy Research Institute in Washington, told me that surging corn prices is “a continuation of what happened in 2008.” The push for biofuels, he said, “has clearly tightened up agricultural commodity markets. That’s good for farmers, but it is not good for poor people around the world.”

Many of those poor live in the US. Some 43.6 million Americans, about 14 percent of the population, are now receiving federal food stamps. Since October 2008, the number of Americans relying on food stamps jumped by 41.5 percent and enrollment in the program has increased for 26 consecutive months. And thanks to the ethanol scam, those many millions are being priced out of the meat aisle. Over the past year, beef prices have risen more than 6 percent and pork prices are up 11 percent. Economists are expecting overall grocery prices in the US to rise by about 5 percent this year.

But the real – and likely more dangerous – food-price increases will happen  outside the US. Last year, the OECD projected that global grain prices are likely to be as much as 40 percent higher by 2020,  and a London-based non-profit entity, ActionAid, predicted that some 600 million more people could be left hungry by 2020 due to increased production of biofuels.

Brabeck, the chairman of Nestle, the world’s biggest food company, has rightly put the spotlight on the biofuels madness. As the head of a company with $100 billion in annual food-related revenues, Brabeck clearly has a keen understanding of the global food industry. And last month during the World Economic Forum in Davos, he identified the stunningly obvious solution to the ongoing insanity. “No food for fuel,” he said.

“No food for fuel” should be the rallying cry on Capitol Hill and at the United Nations. It should be a required oath for all of the candidates (and Gingrich in particular) who are planning to campaign in Iowa for the 2012 presidential contest. As the biggest ethanol-producing state, Iowa has long had a stranglehold on America’s presidential selection process because it holds the first primary. And because it holds the first primary, the state’s powerful agriculture interests have, for decades, prevented viable candidates from speaking out against the corn ethanol madness.

It’s time – no, it’s long past time — to heed Brabeck’s advice. Stop the madness.

February 25, 2011 Posted by | Economics, Malthusian Ideology, Phony Scarcity, Progressive Hypocrite | 1 Comment