Five Myths of the Peak Oil Theory

by AL Whitney (C) copyright 2010  All Rights Reserved

In 2008, after doing additional research, I realized that the peak oil theory had huge flaws. It relies on the following five “myths”:

Myth #1.    Oil is a fossil fuel and as such is a “finite” resource
Western science has bought into and taught the fossil fuel myth regarding petroleum for many many years. Researcher/author William Engdahl wrote: ” . . . Western geologists do not bother to offer hard scientific proof of fossil origins. They merely assert it as a holy truth. The Russians have produced volumes of scientific papers, most in Russian. The dominant Western journals have no interest in publishing such a revolutionary view. Careers, entire academic professions are at stake after all.” [As is the sale of many books.]

In an interview Colonial Fletcher Prouty, former government insider,  explained the events surrounding the decision to categorize oil as an organic substance (fossil fuel). He points out that it was deceptively made at a world scientific conference in Geneva back in the 1892 as a result of pressure exerted by scientists employed by oil magnate John D. Rockefeller. They have never found a fossil below 16,000 feet and today oil is frequently mined at depths of 30,000 feet. This fallacy was cemented into “fact” in the early 70′s during the “energy crisis” when globalists John Rockefeller IV and Henry Kissinger convinced top U.S. government officials that a “world price” needed to be established for the “finite resource” – oil.

Here is Col Prouty’s 8 minute interview:

Modern petroleum science has disproven the ‘oil comes from fossils theory’ many years ago. As Dr J F Kenny revealed in this interview on NPR, it was never more than a theory anyway. But, because the industry still enjoys a Depletion Allowance, and the US ‘government’ under the Nixon administration created the Petrodollar, modern petroleum science has been suppressed. Legitimate critics of geologist M K Hubbert’s oil peak bell curve have also been marginalized and even ignored.

Myth #2.    Government reported supply/production figures are relatively accurate and reliable
Many have long recognized that US government statistics are managed/manipulated for political reasons; therefore their accuracy is suspect. A few examples:

Few peak oil proponents wish to acknowledge that all government agencies are political. The head of these agencies are carefully selected by the Executive Branch and report directly to the President. If his political agenda isn’t carried out, the director of the agency is removed and replaced. Hence we don’t get ‘real science’ from government agencies, we get ‘political science’.

Myth #3.    The market price for oil is a legitimate indicator of oil supply and demand
The market manipulation by the unholy alliance between the oil industry, Wall Street and our government was brilliantly exposed by author James Norman in his book, The Oil Card.  Mr. Norman, who also exposed Enron’s stock market manipulation, used his expertise to research COMEX/NYMEX and the oil market. He discovered the same dishonest practices used by the Enron folks have been replicated to manipulate the price of a barrel of oil – for political reasons.

Myth #4.    Exploration and discoveries have slowed or stopped because there is no more oil to find
While Dr. Colin Campbell reports that there have been few oil discoveries since the 60s, he neglects to mention that the industry actually capped off massive oil discoveries in Alaska. Author Lindsey Williams exposed the discovery (and capping) of the massive Gull Island oil fields in his book The Energy Non-Crisis. This fact was verified by former Senator of Colorado, Hugh Chance.  It is only one example of supply destruction that has occurred to control oil availability and price for this “scarce” resource – for which the oil cartel gets a depletion allowance. Additionally, few – if any – academics understand the corporate tax structure behind the “oil depletion allowance“.

Also, many ‘peakists’ don’t bother to mention the Bakken oil field discovery  in the Western United States that is taking off like a shot.

Myth #5.    Corruption has little impact on the “oil market”
Many books have been written on this topic, such as: The Oil Card (stock market manipulation), The Energy Non Crisis (intentional limitation of oil supplies), and See No Evil (corrupt CIA/oil company alliance). Perhaps the most important exposé on corruption in the oil industry is Gary Allen’s The Rockefeller File. The Rockefeller family has done more to control and corrupt the oil industry than any other force and Mr. Allen offers enough documentation to indict them. Unfortunately our current justice system seems to be non-functioning regarding powerful families and corporate crimes.

Related:

The Gulf Oil Spill, Peak Oil and INC the BEAST

Oil is not a fossil fuel – it’s renewable

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7 responses to “Five Myths of the Peak Oil Theory

  1. All of your figures are questionable. The oil companies have no obligation to tell the truth about production figures. The so-called government agencies don’t either. You are making assumptions regarding the reasons for oil price fluctuations that cannot be supported by facts. Neither oil nor water are finite resources. Academia has been spewing out poppycock and calling it ‘science’ for many years. Do your own investigation. There are plenty of links on this page to get you started. Also, author William Engdahl has written wonderful books and articles on this topic.

  2. Pingback: Oil Is Not A Fossil Fuel |

  3. I’ll answer my own question by highlighting a few peaks in resource production from world history…

    Coal production in Britain peaked in 1913. World War I began the very next year. This is also when the Reserve Currency status of the British Pound Sterling began to fade as the world began to prefer the US Dollar. This is also around the time that the Federal Reserve was created and the US went mostly off the gold standard.

    Coal production in Britain decreased rapidly again in the late 1920s after coal miners went on strike due to long hours and brutal work conditions. Only a few years later the world was sliding towards economic depression.

    In 1971 US oil production came to a peak and began to decline. The following decade saw two energy crises and extreme economic stagflation. This is also the time when the US went off the gold standard completely.

    In 1987 oil production in the Soviet Union peaked and began to decline. By 1991, after political and economic collapse, the country became the Former Soviet Union.

    In 1998 Argentine oil production peaked and began to decline. In 1999 the country experienced a violent economic and political collapse.

    In 1999 UK North Sea oil production peaked and began a sharp decline. This was followed closely by the popping of the tech bubble, 9/11, a massive war for resources (oil) in Iraq and lots of money printing.

    In 2005 global conventional crude oil production peaked (led by Mexico) and began to decline. Since then we’ve seen a great recession, more resource wars, food price inflation, food riots, the Arab Spring, Occupy Wall Street and unprecedented amounts of money printing. The Federal Reserved Printed more US Dollars in the last 45 days than existed in 1980.

    Plan Ahead – Plant a Garden

  4. There are so many misconceptions paraded around as truth here I don’t know where to being.

    Lets start with the Bakken which you claim I’ve been ignoring.

    The Bakken is not a recent discovery. That oil was added to the Discovered category a long time ago.

    The technology required to get that oil out of the ground has also existed for decades but production was never profitable.

    It is now a profitable play because oil prices are hanging steadily around $100 per barrel which is hundreds of a percent higher than historic levels.

    Oil is that expensive now because in 2005 conventional oil production peaked and then began to decline.

    One Bakken well costts $10,000,000 and millions of gallons of fresh water to drll, frack and restimulate. That process will currently get you an average of 665,000 barrels of oil over the next 45 years from one well.

    The US consumes 665,000 barrels of oil every 45 minutes.

    So just to be clear, we’re trading $10,000,000 and millions of gallons of water over 45 years for enough oil to keep the US running for 45 minutes.

    The world burns through that much oil in 650 seconds.

    This will barely delay the global peak and then…?

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