Wednesday, September 07, 2005

Lies to Hike the Oil Price?


I received this from a researcher-- Denny Meredith Louisville, Ky. USA A more appropriate title for this piece would have been "Orchestrating Financial Collapse".

I'd like to throw some things out that the public at large doesn't know and never would know. What I am about to tell is common knowledge in oil circles; but the worker ants at the bottom of the pyramid never question what they see. I was an eye witness to what I am going to relate; and there are a good many others who could come forward-- if only they would.

In 2000 I worked in the Gulf of Mexico for two different companies that provided support services to the "oil patch". The two companies did very different work for the oil companies; so I got an eye full. The first thing that I'd like to expose is the fact that nearly all of the new wells in the gulf are immediately capped off and forgotten about. I saw well after well brought in only to see them capped off and
left. Oil or natural gas-- it didn't matter. I asked a couple of petroleum engineers what exactly was going on; and I was told by both (they worked for different companies) that there was no intention of bringing that oil to market until the "price was right". That wasn't the only bogus thing that was happening. Seismic technology had developed to the point that they could not only tell the companies where the oil was, but how much oil was there. All they had to do was go out and stick a straw in and suck it out. They didn't. Once again, the oil prices weren't right. When they are ready and want it, they know right where to go get it.

Another lie I'd like to lay to rest is the one about all of the "terrible damage" done to the oil platforms and rigs in the gulf during hurricanes. This is how they justify the price spikes that occur because of lost production. If anyone cared to see this for herself, she could travel the entire Gulf of Mexico in search of destroyed oil rigs and she won't find any-- not one. There is a damned good reason that this is so; and that reason is that they are built so well that a hurricane can't touch them. Think about it. If you're going to build something in an area where you are guaranteed to see 150-180 mph winds, storm swells up to 60-80 feet and it will happen year after year, how would you build them? Out of chicken wire and duct tape? Hell, no! And they don't! The platforms are designed to offer almost no wind resistance; and the majority of platforms are at least 120 feet above the water level. They are built so well that several of them have suffered direct hits by watercraft of all sizes with little harm. They were damaged, but they were far from destroyed.

The reason that I know how well they are constructed is because, for awhile, I worked with a company that salvaged derelict oil rigs. When the wells ran dry, the oil companies didn't need them any more. Then, the company that I worked for would buy them, take them apart, haul them back to land, refurbish, and resell them. It is an incredible process to take these things apart because they are constructed so well. I've worked on the boats that hauled explosives to the job sites to speed the disassembly process.

Another lie regards the "burp" in the supply line. Oil companies are as stingy as any on earth; and one of the ways that they cut costs is to eliminate the number of people that they need on a rig to keep it running. Most active wells are totally automated and require almost no human intervention. The oil companies have guys that travel from rig to rig via helicopter to check on things periodically; but most never see a human on them unless something goes wrong or some maintenance is needed.

During a hurricane, about the only rigs that need to be evacuated are the drill rigs that have workers on them. The active wells and pumping stations are controlled by remote control from the shore; and if it weren't for the evacuation of land based personnel from areas where there is danger, these things could continue to pump right through the worst hurricane. So, regarding a burp in the supply chain, there shouldn't be one; and that is because most of the oil from the Gulf of Mexico goes to the refineries at Port Arthur or other points in Texas. And the tankers from the middle east go to Galveston to off-load.

When oil moves across the Atlantic during hurricane season, the tanker traffic might have to kill some time to let a storm get ahead of them; but once it does, they haul ass right behind it. Anyone who has seen how fast an oil tanker can move in open water will tell you that they don't dawdle around. Most of them can move around 30-40 knots; and for a ship that size, that baby is moving on! The only reason they would have to kill any more time would be if a hurricane suddenly changed course and was headed for Galveston. So far this year, that hasn't happened. So why the "break" in supply?

Everything that we hear about oil from the oil companies is a big fat lie. Have we hit "peak oil," as many insist that we have? I'll make a wager with anyone who would care to take the bet. I bet that when oil hits $100 a barrel (I have a hunch that's the target price) there will be no shortage. Any takers?

So for all of the young women and men who are waiting for their draft notices, I would say don't bother, I don't think that there will be a draft. They won't need one. Since the all volunteer military came into being recruitment has always had an inverse relationship to the economy. The better the economy, the harder it is to get recruits. We're facing a winter season in North America that might see heating costs equal to a family's house payment. If our weather is being controlled, expect it to be a bad winter. With $100 a barrel oil on the horizon, and the ensuing loss of jobs because of energy costs, the military will be one of the only places a young man or woman will be able to eat on a regular basis, and keep a roof over their heads.

The beltway fascists have said all along that there would be no draft because they wouldn't need one. Don't you have to wonder how they knew this? God does work in mysterious ways. [Every day, Love is making progress in exposing corruption.] The neocons need cannon fodder for their war machine; and, lo and behold! mysterious market forces drop it on their doorstep.

For another coincidence take a look at Social Security here in the US. Amazing how the price of oil began a sudden rise when it became apparent that the American people weren't going to allow their retirement money to be "privatized". When the carrot didn't work, the stick wasn't far behind.

Thanks to Barbara Siler.

(Note from blog manager H: A link to verify the author or this article could not be found)

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