Tuesday, 01 November 2011 22:25

Investing in Oil, the Right Energy and the Power Game

In the early 1980s, Ronald Reagan's America influenced the prices of crude oil to go low. This raised production and gradually led to a simulated peak oil. Some liberals still believe it was real. The actual backstage game was to speed up bankruptcy across the Soviet economy. With the Red Army clogged in Afghanistan, with their centralized clunky planned economy, a so-called oil peak was an intelligent push to cripple a huge portion of Moscow's income from energy exports. So the Soviet empire was no more after 1991. 

Almost a decade later, the young guns of the former KGB took over Kremlin. They were not just young but also much smarter than their former leaders. Vladimir Putin's Russia has rebuilt its political power and projected regional influence based on natural gas and oil exports. Former communists swiftly converted into capitalists, building a transnational network of oil companies from Europe to Japan, from South America to the Middle East and from China to Northern Africa.  

 
In a way, Putin revived the old Russian expansionism because he knew how to manage a practically limitless pool of natural resources at hand. Investing in oil is not strictly business but also politics. 
 

Obama's America is Losing, Yet Again! 

 

Like the USSR in the 1980s, the USA of the 2000s suffered from the geopolitical consumption in Iraq and the same Afghanistan. However, the costs of war are not on par with the incredible government spending on lala-land domestic dream projects. 

Because the USA is not a major oil exporter (although it could be), the way Russia is, there's no need to hurry its demise by reinventing a new peak oil (although mainstream theorists fantazise on "peak oils" every now and then). The "green energy" theory has gained an unprecedented stronghold in the psyche of the Obama-centered intelligentsia. The President of the USA, together with the liberal media and various designated "American czars," are so deeply invested in "green energy." 

It's like a cult matter, like a religion haunting their minds, when Obama says "let there be green energy jobs." They expect that jobs will come into existence because Obama said so. The cult drive denies the scientific method of trial and error. Simply put, current research is still years away, if not decades, from pure and clean energyextracted out of the void of space. Actually that's more likely to be called blue energy instead of the tiring and pathetic green energy political mantra of the day. 

Obama's word cannot create novel realities only because he is so confident (or shows to be) in the questionable efficiency of wind mills and solar panels. 

What the US government knows, but loves to ignore, is that the USA has crude oil resources on par with the former USSR. It's only a matter of willingness, to open the pipes for America to become a major oil exporter. This along with covering its addiction for oil from domestic fields. But the US government is not invested in oil. 

Adding insult to injury, to this unexplainable stubbornness, groups of radical environmentalists keep filling lawsuits against oil companies that extract and process oil from American fields. "In both Montana and Idaho courts to try to prevent the big rig trucks from hauling the oil drilling equipment, and In some cases they have gathered on the highways to block the traffic - literally, physically, standing on the roads and at times laying-down on the roads - to prevent the trucks from rolling."

This is just an example of stupid America shooting herself in the foot. 

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