The end of oil as we know it … Oil has crashed. But a short-term drop in the price of oil is nothing compared with the end of demand for oil as we know it. The more extreme scenario is what Bernstein Research is now talking about. Energy analyst Neil Beveridge is out with a new note that explores the question of demand — with a prediction that the end of oil as we know it is coming in 2030. –Business Insider
Oil production was supposed to decline and leave the world in chaos and on the verge of starvation. It never happened though, and we knew it wouldn’t.
The concept was known as Peak Oil, and it was a lie.
Now another lie is coming to the fore: the idea that the West and the world are migrating eagerly toward “renewable resources.”
It is an enforced migration, not a voluntary one.
The question for consumers and investors alike is whether it is going to be effective or resisted, as it was in the 1970s. Hundreds of billions and even trillions hang in the balance.
It may sound odd that we argue the energy industry in all its vastness is manipulated. But if you go back in time, you can get some idea of the scale of manipulation that existed and still exists.
We spent well over a decade writing articles about Peak Oil and confronting a plethora of Peak Oil websites that posted article after article claiming that accessible oil was increasingly rare.
None of these websites or the people behind them would consider that their arguments were based on deliberate fallacies.
For instance in the late 1800s, John D. Rockefeller sent his executives over to Europe to attend an initial chemistry conference. They were under strict orders not to return until they had figured out a way to establish that oil was based on the same chemistry that defined other life forms.
Once Rockefeller obtained his manufactured evidence, the marketing of oil as a depleting resource began in earnest. Sinclair Oil even adopted a dinosaur as its logo and mascot.
The Peak Oil concept itself was created in the 1930s by one of the founders of the Technocracy movement, M. King Hubbert.
Hubbert believed Peak Oil would occur in the mid-to-late 20th century. Subsequently, for one reason or another, the date kept moving up. Then recently, the entire concept collapsed along with the price of oil.
Peak Oil depended on people believing that oil was a scarce commodity. Henry Kissinger put this belief structure to good use when he traveled to Saudi Arabia in 1971 and made it clear that the House of Saud was to sell oil for dollars and nothing else.
This created the famous petrodollar, based on oil scarcity. Saudi Arabia’s ability to insist on the oil-dollar trade was rooted in its role as the number one producer of oil.
In order to maintain Saudi Arabia’s primacy, other sources of oil were repressed. But recently, the same forces that created the petrodollar have begun to disassemble it. The easiest way to undermine the petrodollar is to find other sources of energy.
Once Saudi Arabia becomes just one producer of oil among many, its ability to maintain the petrodollar becomes increasingly tenuous.
As additional sources of oil are discovered, nations increasingly pay for energy in currencies other than the dollar. Nations don’t have to hold dollars anymore and the US’s ability to print unlimited amounts is thus lessened.
This is how the dollar dies, via commodity manipulation created by the same Western elites that created the scarcity – and thus the petrodollar – in the first place.
Now that we have examined previous manipulations, let us examine the gradual decline of oil consumption and the rise of alternative energy – and how that is being manipulated.
Call alternative energy the “new” Peak Oil. It’s being aggressively funded all over the world. Meanwhile, the use of oil and coal is gradually being legislated out of existence.
Oil and gas are fairly easily extracted from the ground. They can be easily transported as well. It is energy you can carry with you.
Solar and wind energy, among other forms, are being manufactured in huge “farms.” Therefore these sorts of energy are controlled at a corporate and government level.
The power that is generated will be available at a domestic level. But power will not be obtainable or transportable by the individual.
The availability of this kind of power gives transnational corporations and government agencies tremendous leverage to influence people’s lifestyles and living conditions.
The rise of alternative energy will be driven by three factors, according to the Business Insider article.
Less use: Developed nations will continually and aggressively reduce the use of oil.
Fuel efficiency: New and better technologies will depress oil consumption.
Climate change: Political activism will generate anti-oil regulatory policies. Demand will be reduced by state power.
Each of these factors, it can be argued, is not the result of public choice but elite manipulation. The whole “renewable energy” industry is vastly dependent on public funding in a way that oil and gas never were. The goal, as stated, is increasing social and economic control.
Given a choice, people might well wish to maintain energy supplies that they themselves can access and transport.
Will the “new” Peak Oil come to pass? Not so fast. People generally are exhibiting increasing impatience with such manipulations.
Conclusion: Years ago we asked, as we ask now, whether elite promotions would be more or less enforceable in the 21st century. If Rockefeller had not been able to enforce the lie that oil was a scarce commodity, the whole industry would have taken on a different and less profitable profile. But today the assertion of elite manipulations is becoming increasingly questionable as people become more politically active and less satisfied with their economic condition. Both investors and consumers must inevitably grapple with this emergent phenomenon.