Study Guide: Oil

Libya Oil Chief: Production Down 50 Percent, 2/28/11

http://www.npr.org/templates/story/story.php?storyId=134103034

  • Libya's oil chief said Monday that production had been cut by around 50 percent, and argued it was "safe" for foreign oil workers to return after a mass exodus sparked by Moammar Gadhafi's increasingly violent campaign to retain control of the country.
  • Libya produces about 1.6 million barrels per day of crude oil, and about 85 percent of its exports are Europe-bound.

Here are some helpful stats for coverage today, from the Energy Information Administration:

  • Libya holds 44 billion barrels of oil reserves. That is the most in Africa, dwarfing the 37.2 billion barrels in Nigeria and far ahead of a country like Egypt, which  held just 3.7 billion barrels
  • Interestingly, oil production isn’t that big. It peaked at 3 million barrels in the 1960s and hasn’t come back. The state-owned oil company is scheduled to reach those levels again by 2017.
  • Libya is a big worldwide supplier, mostly to Europe. Thirty-two percent of oil is exported to Italy, while 14% goes to Germany. Ten percent goes to China and 5% comes here to the U.S.
  • We imported about 80,000 barrels a day from Libya in 2009. The most was 2007, when we imported 117,000 barrels a day.
  • Libya’s reserves represent 3.24% of the worldwide supply. That makes it the planet’s ninth-largest source of reserves.

Prices of crude oil and gasoline rise as violence in Libya upsets markets

http://www.washingtonpost.com/wp-dyn/content/article/2011/02/24/AR2011022404720.html <http://www.washingtonpost.com/wp-dyn/content/article/2011/02/24/AR2011022404720.html>

  • For U.S. consumers, higher oil prices most directly affect drivers and truckers, who devour the vast majority of U.S. petroleum products. U.S. pump prices for regular gasoline jumped 4 cents a gallon overnight, to $3.23, an eight-cent increase in the past week and 55 cents more than a year ago
  • The price of crude oil has surged since Libyans began a revolt against leader Moammar Gaddafi last week, although it has been climbing for most of the past year. Goldman Sachs analysts warned in a report that Libya's unrest created "significant upside risk" and reduced the ability of the Organization of Petroleum Exporting Countries to respond to further supply disruptions.

Gas prices surge 17 cents in a week

http://money.cnn.com/2011/02/26/news/economy/gas_prices/index.htm <http://money.cnn.com/2011/02/26/news/economy/gas_prices/index.htm>

  • NEW YORK (CNNMoney) -- Gas prices have increased 17 cents a gallon in the past week. And analysts expect prices to continue higher, following a sharp rise in the price of crude oil.
  • The national average price for a gallon of regular gas rose 4.6 cents to $3.33, motorist group AAA said Saturday. That marks the fourth day in a row that prices have risen, and brings the national average to the highest level since October 2008.
  • The spike in oil last week could translate to an increase in gas prices of 37 cents per gallon in the coming weeks, according Moody's Analytics economist Chris Lafakis. He estimates that for every $1 increase in the price of oil, retail gas prices typically rise 2.5 cents a gallon.

New Study Shows That Offshore Drilling Could Make Alaska the Eighth Largest Oil Producer in the World – Ahead of Libya and Nigeria

http://www.northerneconomics.com/pdfs/ShellOCS/National%20Effects%20Report%20FINAL.pdf <http://www.northerneconomics.com/pdfs/ShellOCS/National%20Effects%20Report%20FINAL.pdf>

http://www.cnsnews.com/news/article/new-study-shows-offshore-drilling-alaska# <http://www.cnsnews.com/news/article/new-study-shows-offshore-drilling-alaska>

  • (CNSNews.com) – A new study <//www.northerneconomics.com/OCS/National>  says drilling on Alaska’s Outer Continental Shelf (OCS) could make Alaska the eighth largest oil resource province in the world -- ahead of Nigeria, Libya, Russia and Norway.
  • The report -- by the consulting firm Northern Economics and the University of Alaska-Anchorage’s Institute of Social and Economic Research -- says that developing Alaska’s OCS could produce almost 10 billion barrels of oil and 15 trillion cubic feet of natural gas, create around 55,000 new jobs and produce $145 billion in new payroll nationally, generating a total of $193 billion in government revenue through the year 2057.

T. Boone Pickens doubts Saudi Arabia can stabilize oil prices

http://www.globalpost.com/dispatch/news/business-tech/110225/t-boone-pickens-saudi-arabia-oil-prices# <http://www.globalpost.com/dispatch/news/business-tech/110225/t-boone-pickens-saudi-arabia-oil-prices>

  • Libya usually ships 1.3 million barrels per day. To partially make up for that shortfall, Saudi Arabia has already increased its production by 700,000 barrels per day, to more than 9 million bpd, Reuters reported today <http://www.reuters.com/article/2011/02/25/markets-energy-nymex-idUSN2524362320110225> . Saudi officials, who are taking steps to ward off domestic unrest, have stated that they could pump 12 million bpd.
  • “I don’t think they have the capacity to do 12 million,” Pickens told GlobalPost. “I’d be surprised if they have the capacity to do 10 million.”
  • If Pickens is correct, that would mean that Saudi Arabia is producing at near maximum capacity. “They’re the only ones who could make up the production shortfall,” Pickens said. “We’ve got to be crazy to bet on Saudi Arabia for everything
  • Pickens based his skepticism over Saudi Arabia’s capacity claims on the country’s inability to pump additional oil from its aging fields prior to the financial crisis, as prices soared to record highs. He stressed that no one can say for sure what Saudi Arabia’s capacity is, due to the lack of transparency in the world’s biggest oil exporter. “They won’t let you audit the reserves, and you don’t really know what the production level is.”
  • Pickens warned that Saudi Arabia essentially has the power to set world energy prices, and states that they haven’t yet stated at what level they intend to do so. “There’s a big energy table, we don’t have a chair there. We’re out in the hall and [the Saudis] come out and tell you what you’re going to pay for it.”
  • He points out that China has far greater control over its oil supply than the U.S. does, importing 5 million bpd from fields that it either owns or controls via debt deals. “They have an energy plan,” he said. “The U.S. has no energy plan.”

China & Oil

http://www.pickensplan.com/china/ <http://www.pickensplan.com/china/>

  • Since Dec 2007 China has spent $262B on petroleum and “loan for energy” deals to secure future oil production
  • These contracts have potential to bring 7.8B barrels of oil to China
  • China has bid on or bought shares in over 25 international oil exploration & production companies
  • China has committed to exploration, production & petroleum infrastructure construction in more than 24 countries (some are US enemies)

http://www.eia.doe.gov/cabs/China/Oil.html <http://www.eia.doe.gov/cabs/China/Oil.html>

  • China consumed an estimated 8.3 million barrels per day (bbl/d) of oil in 2009, up nearly 500 million bbl/d from year earlier levels. During that same year, China produced an estimated 4.0 million bbl/d of total oil liquids, of which 96 percent was crude oil.
  • China’s net oil imports reached about 4.3 million bbl/d in 2009, making it the second-largest net oil importer in the world behind the United States and for the first time surpassing Japan’s imports.
  • EIA forecasts that China’s oil consumption will continue to grow during 2010 and 2011, with oil demand reaching almost 9.6 million bbl/d in 2011. This anticipated growth of over 1.2 million bbl/d between 2009 and 2011 represents about 37 percent of projected world oil demand growth during the 2-year period according to the September 2010 Short-Term Energy Outlook.
  • By contrast, China’s oil production is forecast to rise by about 150 thousand bbl/d to nearly 4.2 million bbl/d in 2011.

Russia Starts Oil Pipeline to China as Putin Looks to Diversify, Dec. 31, 2010

http://www.bloomberg.com/news/2010-12-31/russia-starts-oil-pipeline-to-china-as-putin-looks-to-diversify-exports.html <http://www.bloomberg.com/news/2010-12-31/russia-starts-oil-pipeline-to-china-as-putin-looks-to-diversify-exports.html>

  • OAO Rosneft, Russia’s largest oil producer, and state-run pipeline operator OAO Transneft will sell China 15 million metric tons (110 million barrels) a year for 20 years through the East Siberia Pacific Ocean pipeline, known as ESPO, after China provided the companies $25 billion in oil-backed loans to finance construction and development of deposits.
  • Russia currently supplies crude to China by rail and shipped 1.06 million tons in November, making it the Asian country’s seventh-largest supplier, according to Chinese customs statistics on Bloomberg.
  • Prime Minister Vladimir Putin <http://topics.bloomberg.com/vladimir-putin/>  has said the $26 billion project will diversify the delivery of Russia’s natural resources beyond Europe <http://topics.bloomberg.com/europe/> . Russia also hopes the pipeline will unlock millions of barrels of resources trapped in remote deposits along its path.
  • The ESPO pipeline <http://www.transneft.ru/projects/project/?zpID=4248> when completed in 2014 will span about 4,700 kilometers (2,900 miles), longer than the distance from London <http://topics.bloomberg.com/london/> to Tehran. It will carry oil from Taishet, beyond the west Siberian basin where most of Russia’s oil is produced, to Russia’s Pacific port of Kozmino.

New gas and oil pipelines in Europe and Asia could take the politics out of transportation

March 3, 2010 <March%203,%202010%0dhttp:/www.telegraph.co.uk/sponsored/russianow/business/7361011/New-gas-and-oil-pipelines-in-Europe-and-Asia-could-take-the-politics-out-of-transportation.html>

http://www.telegraph.co.uk/sponsored/russianow/business/7361011/New-gas-and-oil-pipelines-in-Europe-and-Asia-could-take-the-politics-out-of-transportation.html <March%203,%202010%0dhttp:/www.telegraph.co.uk/sponsored/russianow/business/7361011/New-gas-and-oil-pipelines-in-Europe-and-Asia-could-take-the-politics-out-of-transportation.html>

  • The Trans-Asian gas pipeline cost $6.7bn to build and is the first out of the Caspian region that runs east, linking Turkmenistan's massive gas basin with China's west-east gas pipeline. Now Turkmen gas can be sent as far as Shanghai and Hong Kong. The pipeline will carry up to 40 billion cubic metres (bcm) by 2013 – accounting for almost half of China's gas needs.
  • The Turkmen gas pipeline follows on the heels of a new Kazakh oil pipeline to China that rounds out the new eastward-looking energy transport infrastructure. The first phase of the Kazakh oil pipeline went into operation in July last year; a second phase will link Kazakhstan's rich Caspian oil resources to China.
  • Russia has proposed two new routes that run to the north and south of Ukraine to diversify the supply routes: Nord Stream runs from northwest Russia to Germany <http://www.telegraph.co.uk/sponsored/russianow/business/7293128/Nord-Stream-further-agreement-in-the-gas-pipeline-for-Finland-and-Russia.html> ; and South Stream runs from southern Russia under the Black Sea to Turkey. Mr Putin ordered construction to start on Nord Stream at the end of last year, after the pipeline got the last environmental permits from Germany.

Federal judge to Salazar: Stop stalling drilling permits

http://washingtonexaminer.com/blogs/beltway-confidential/2011/02/federal-judge-orders-salazar-act-drilling-permits-within-month##ixzz1FH97aRjE <http://washingtonexaminer.com/blogs/beltway-confidential/2011/02/federal-judge-orders-salazar-act-drilling-permits-within-month>

  • Federal District Judge Martin Feldman today gave President Obama and Interior Secretary Ken Salazar 30 days to act on five applications seeking permits to drill in the Gulf of Mexico submitted months ago by a Louisiana firm
  • Feldman had strong words for Obama and Salazar, noting that "the government is under a duty to act by either granting or denying a permit application within a reasonable time. Not acting at all is not a lawful option."
  • He added that "to discharge the Secretary’s oversight responsibility, without any time-sensitive obligation to do so, as the government now starkly urges, unmasks the fiction of transparency in government."
  • To the government's excuse that regulation became more complicated and time-consuming in the wake of the Deepwater Horizon disaster, Feldman was equally unmoved: "Perhaps it is reasonable for permit applicants to wait more than two weeks in a necessarily more closely regulated environment. Delays of four months and more in the permitting process, however, are unreasonable, unacceptable, and unjustified by the evidence before the Court," he said.

http://www.nytimes.com/2010/07/13/us/13commission.html <http://www.nytimes.com/2010/07/13/us/13commission.html>

  • The revised moratorium would allow some drilling rigs to resume operating under certain conditions. To qualify, the rig’s owners must prove that they have adequate plans in place to quickly shut down an out-of-control well, that the blowout preventers atop the wells it drills have passed rigorous new tests, and that sufficient cleanup resources are on hand in case of a spill. Industry officials said it would be difficult to meet those conditions quickly, which could threaten thousands of jobs.

1.      Puget Sound Anarchists

http://pugetsoundanarchists.org/node/243

2.      China uses whistles, water, police on protests

http://www.google.com/hostednews/ap/article/ALeqM5imCQTUC76-TcrIzF-V_5ZT2a3z9Q?docId=6fa2f9cd1987475e908516c820193fea

3.      Middle East unrest spreads to Oman

One protester killed by security forces in Omani town of Sohar, while Bahrain stages peaceful demonstration and Saudi intellectuals call on king to relinquish many powers

http://www.guardian.co.uk/world/2011/feb/27/middle-east-protests-oman-bahrain

4.      Analysis: After the crisis, a worldwide rise in unrest?

With the Middle East in turmoil, authoritarian states jumpy and post-crisis economic pain prompting protest in western Europe and elsewhere, some suspect a systemic rise in worldwide unrest might just be beginning.

http://uk.reuters.com/article/2011/02/28/us-global-unrest-idUKTRE71R3M420110228

5.      From Egypt to America: Revolution, class struggle & the return of history

http://www.wsws.org/articles/2011/feb2011/meet-f26.shtml

Terry Trobiani owns Gianelli's Drive Thru in Prairie Grove, Illinois, where he put up a row of American flags for the Fourth of July. But the city claimed he was displaying two of them improperly and issued him a $100 ticket for each flag.

Terry joined Glenn Beck on the radio program Tuesday to explain what he believes really happened. He told Glenn that, according to city ordinance, the American flag is considered "ornamental" and should therefore have been permitted on a federal holiday. But the city has now classified the flag as a "sign."

"Apparently, the village of Prairie Grove has classified the American flag as a sign and they've taken away the symbol of the American flag," Terry said. "So, as a sign, it falls under their temporary sign ordinance, which prohibits any flying, or any positioning of signs on your property — and now this includes the American flag. [...] The only way I could fly the American flag on my property is if I put it on a permanent 20 to 30-foot flagpole, which they have to permit."

Terry went on to explain how the city is now demanding an apology for his actions, and all after more than a year of small-business crushing COVID restrictions and government mandates.

"COVID was tough," Terry stated. "You know, we're in the restaurant business. COVID was tough on us. We succeeded. We made it through. We cut a lot of things, but we never cut an employee. We paid all our employees. I didn't take a paycheck for a year just to keep our employees on, because it was that important to me to keep things going. And, you know, you fight for a year, and you beat a pandemic, and then you have this little municipality with five trustees and a president, who just have no respect for small businesses. And right now, what I see is they have no respect for the republic and the United States ... I think it's terrible. The direction that government, at all levels, have taken us to this point, it's despicable."

Watch the video below to catch more of the conversation:


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The Biden administration is now doing everything it can to censor what it has decided is COVID-19 "misinformation." But Glenn Beck isn't confident that the silencing of voices will stop there.

Yeonmi Park grew up in North Korea, where there is no freedom of speech, and she joined Glenn to warn that America must not let this freedom go.

"Whenever authoritarianism rises, the first thing they go after is freedom of speech," she said.

Watch the video clip below from "The Glenn Beck Podcast" or find the full episode with Yeonmi Park here:

Want more from Glenn Beck?

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Most self-proclaimed Marxists know very little about Marxism. Some of them have all the buzzwords memorized. They talk about the exploits of labor. They talk about the slavery of capitalist society and the alienation caused by capital. They talk about the evils of power and domination.

But they don't actually believe what they say. Or else they wouldn't be such violent hypocrites. And we're not being dramatic when we say "violent."

For them, Marxism is a political tool that they use to degrade and annoy their political enemies.

They don't actually care about the working class.

Another important thing to remember about Marxists is that they talk about how they want to defend the working class, but they don't actually understand the working class. They definitely don't realize that the working class is composed mostly of so many of the people they hate. Because, here's the thing, they don't actually care about the working class. Or the middle class. They wouldn't have the slightest clue how to actually work, not the way we do. For them, work involves ranting about how work and labor are evil.

Ironically, if their communist utopia actually arrived, they would be the first ones against the wall. Because they have nothing to offer except dissent. They have no practical use and no real connection to reality.

Again ironically, they are the ultimate proof of the success of capitalism. The fact that they can freely call for its demise, in tweets that they send from their capitalistic iPhones, is proof that capitalism affords them tremendous luxuries.

Their specialty is complaining. They are fanatics of a religion that is endlessly cynical.

They sneer at Christianity for promising Heaven in exchange for good deeds on earth — which is a terrible description of Christianity, but it's what they actually believe — and at the same time they criticize Christianity for promising a utopia, they give their unconditional devotion to a religion that promises a utopia.

They are fanatics of a religion that is endlessly cynical.

They think capitalism has turned us into machines. Which is a bad interpretation of Marx's concept of the General Intellect, the idea that humans are the ones who create machines, so humans, not God, are the creators.

They think that the only way to achieve the perfect society is by radically changing and even destroying the current society. It's what they mean when they say things about the "status quo" and "hegemony" and the "established order." They believe that the system is broken and the way to fix it is to destroy, destroy, destroy.

Critical race theory actually takes it a step farther. It tells us that the racist system can never be changed. That racism is the original sin that white people can never overcome. Of course, critical race theorists suggest "alternative institutions," but these "alternative institutions" are basically the same as the ones we have now, only less effective and actually racist.

Marx's violent revolution never happened. Or at least it never succeeded. Marx's followers have had to take a different approach. And now, we are living through the Revolution of Constant Whining.

This post is part of a series on critical race theory. Read the full series here.

Americans are losing faith in our justice system and the idea that legal consequences are applied equally — even to powerful elites in office.

Rep. Devin Nunes (R-CA) joined Glenn Beck on the radio program to detail what he believes will come next with the Durham investigation, which hopefully will provide answers to the Obama FBI's alleged attempts to sabotage former President Donald Trump and his campaign years ago.

Rep. Nunes and Glenn assert that we know Trump did NOT collude with Russia, and that several members of the FBI possibly committed huge abuses of power. So, when will we see justice?

Watch the video clip below:


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