Let’s Call It “All Out War”
A short while back I wrote about Saudi Arabia running out of oil. After all, no reservoir on Earth can last forever. But the reasons for the Saudis increasing oil production to unsustainable limits, the reason for slashed oil prices, the American shale oil gambit against Russia is the nucleus of current policy crisis on our planet. Russia is suffering from an economic attack of immense magnitude, and the Saudis are being thrown into the maelstrom, right along with the rest of us. Let us recall.
In November of 2014, OPEC members met in Vienna to decide whether or not to cut production in order to keep the price of oil up, even despite competition from American shale oil. At least this is what the news reported. The reality of this move is, as we have seen in other events, a strategic move by the American alliance. The latter part of 2014 saw many “curious” events take place. Not the least of these were; US Secretary of Defense, Chuck Hagel’s resignation; ISIL proclaimed itself to be a worldwide caliphate; Israel launched Operation Protective Edge on the people of Gaza; Malaysian Airlines flight MH17 crystallized as a burning point in West-East relations. The Saudis ramped up production even to the country’s detriment, as we see now. The “why” of this is pretty clear, but for the game to go on Saudi leadership will be committing suicide. More on that further along, for now let’s relive 2014.
2014 saw new heights reached where finger pointing and a misinformation war were used by Washington, London, and Brussels. Other meaningful events included the Obama administration’s “two faced” policies on climate change, the Supreme Court trend against issues like “same-sex marriage”, and other indicatives. But it was the oil war waged against Russia, China, and Iran that thrust the world into our current crisis. This Market Oracle report on world oil break even prices and capacities frames the starting and ending points of my report here. As you can see in these charts, Saudi Arabia is the only major producer Washington could leverage to ruin Russian prosperity. Make no mistake, this is what cheap oil is about today. Look at America’s shale oil “break even” point! Yes, the US is losing money fracking the last of our oil reserves. Even the owned media in the West content an oil war is underway against Russia and Iran. Oil tanking, the ruble’s decline, military and political crisis today is a strategy. Just look at what the notorious spoiler, George Soros said back in March of 2014:
“The strongest deterrent is in the hands of the United States because it can release oil from the strategic oil reserve, which would then reduce the price of oil, and that would ruin the Russian economy, which lives on oil.”
Next came what Washington and her allies expected to be the coup de grâce – “BAM!” – Russia was hit by a second wave of attacks spurred by tumbling oil prices and western currency speculation. The ruble was almost totally destroyed in December, 2014. Russia’s Foreign Intelligence Service (SVR) Chief, Mikhail Fradkov warned of “Foreign investment entities” taking part in the event via intermediaries at the time. Soros and other famous names were implicated in the “short selling” of the ruble.
Meanwhile, 2014 also saw the US and Arab allies had begun airstrikes inside sovereign Syria without President Assad’s permission. Military interdiction, combined with economic warfare initiatives, and the host of conflict derivatives put in play in 2014 reveal to us the severity and nature of this ongoing war. From Russia’s perspective, during this time Vladimir Putin, Russia, and her allies were gaining ground on the Washington and NATO provoked crises from Ukraine to Syria. Even the Foreign Affairs think tank blamed the so-called “West” for the Ukraine crisis at this point. As author John J. Mearsheimer put it;
“…the United States and its European allies share most of the responsibility for the crisis. The taproot of the trouble is NATO enlargement, the central element of a larger strategy to move Ukraine out of Russia’s orbit and integrate it into the West.”
So, like the rampant super-capitalism that powers western banks and investing, NATO growth and the extension of the EU to engulf another surrogate was the “only” plan in place all along. Just as Frankfurt and Luxembourg bankers have milked Romania and other eastern European nations dry these last two decades, Ukraine was destined to be the next vassal republic in a collapsing system. We must understand how each nation is used, how key players manipulate and how none of these events are independent, in order to solve the current crises.
US Desperation: An Economic Doomsday
It is my belief that in 2014 the powers behind Barack Obama saw the “team” losing on every front to Putin and his advisers. Furthermore, the desperate nature of this war, the economic house of cards underneath American, British, and European economic might, and other crucial flaws in these systems made all out war on Russia, Iran and China inevitable. This is fodder for another report or two, but the Saudis suicidal oil play makes more sense when all things are considered. The jig is up though, all that’s left is for a key player to realize the irrefutable – Saudi Arabia must switch sides – or die.
Saudi Arabia’s Salman bin Abdulaziz Al Saud could end Cold War II and win an endless prosperity for the Saudi people with a command. Rather than pump the last of his people’s only treasure out of the ground to serve the infidels in Washington and London, the Saudi king need only cut oil production 20 or 30% for a little while. The US cannot keep up, Russia would not move to fill the void, neither would Iran for $80 or so per barrel would make everyone rich. The Saudis would lose nothing, austerity there could end overnight in reality, and the US weapons makers would never allow US presidents or congresspersons to cut weapons shipments to anywhere. I am smiling now, at the sheer simplicity of my remedy here, smiling and thinking how Obama’s people must hate me at this moment.
I know I have dramatically over-simplified with this Saudi-solution to the current world crisis. But I’ve done so only in characterizing King Salman’s task, his needed proclamation. You see deals have been struck already, in between the leadership of the so-called “West” and the corporate legion behind. Saudi Arabia’s royal family is beholding, pinned to the proverbial wall by what Putin characterized as “back room” deals. After all, imagine what it took to orchestrate a wide reaching economic war, and all the proxy wars from Libya to Afghanistan and back. The Israelis standing in the wings, Rothschild banking interests, the George Soros types all around, the multitude of henchmen like Turkey’s Recep Erdogan, the new world mafia has long tentacles. But I guess you can fantasize on your own about a real world James Bond epoch, of the real SPECTRE running in between governments and the people. Still, sooner or later Saudi Arabia’s king is going to have to choose in between a practical alliance and one that will lead to revolution in his country. My advice is that he cut ties now, and save the world and his people the trouble of his abdication.
Many who have read this far could be confused. My skill in writing is taxed even, when trying to synthesize the infinitely complex into a single point of solution. I do hope my point is well made though, because the King of Saudi Arabia could end a lot of misery without so much effort as a complete oil embargo like in 1973. My American contemporaries will argue, as a matter of utter hard headed idiocy, how shale oil can not only keep up, but how the strategic reserves can last forever. This is however utter stupidity, if not for the overestimation of US shale oil capacities, then for the negative effects of producing needed oil flows. As for the “strategic” nature of American oil, and the play with the Saudis, this report from the Office of Deputy Assistant Secretary for Petroleum Reserves details how Saudi Arabia will eventually be stabbed in the back. The assessment argues that 4 trillion barrels of oil from shale can be produced on the one hand, while proving OPEC oil has already passed its peak. This document is, in fact, the very report current US policies have been derived from. This quote about the “dangers of non-action” is telling:
“Worldwide competition for oil could result in a price escalation and supply disruptions similar to those experienced in the 1970s. Unlike the crisis in the 70s however, this time relief by simply finding more conventional oil will not be possible.”
Bitter Medicine
The report is damning in many respects, not the least of which is the clear recommendation that public “policy” be changed in order to facilitate not only the needed regulations for extracting shale oil, but to help “investors” to have confidence in fueling it. In effect, the authors evangelize for the current energy war that ravages nations. Not only do these scientists of cataclysm trumpet a new era of un-sustainability, they also minimize any possible notion fracking and shale extraction can have negative consequences. Prepared by for the Bush administration in 2004 by a company known as AOC Petroleum Support Services LLC and experts from INTEK Inc. (see connections to Northrop Grumman, Transocean, etc.), the report also alludes to the cohesive structure of Washington leadership, for Obama’s administration clearly carried out the suggested recommendations to the letter. Unfortunately for the American people and the world, INTEK’s analysis was tilted, hyped, overestimated and pumped into the policy machine by hedge fund managers and energy bosses as fact. This analysis shows the naked truth, the Obama led fiscal psychosis laid bare:
“The Associated Press also reported, citing a Government Accountability Office investigation, that the US Interior Department’s Bureau of Land Management had failed to adequately inspect thousands of oil and gas wells that are potentially high risk for water and environmental damage.
Despite the mounting evidence that the shale gas boom is heading for a bust, both economically and environmentally, both governments and industry are together pouring their eggs into a rather flimsy basket.”
Obama and his team, and the neocons behind, they are once again proven liars and essential traitors to America’s best interests. Shale oil production is maxed out, any future demands will cause an industry wide meltdown in America. Now the only thing that can save what is left of a sustainable future is in the very hands of the surrogate ally led to mutually assured economic destruction, Saudi Arabia. If that nation hopes to survive this energy war, a king has to come clean with his people, and he has to serve up what the Obama handlers feared most – a new kind of embargo. I am sure, that with some thought having already been spent; all the parties concerned know I am right.
As for Barack Obama and his team, go ahead, hate me hard.
Phil Butler, is a policy investigator and analyst, a political scientist and expert on Eastern Europe, exclusively for the online magazine “New Eastern Outlook”.
