Tuesday, January 31, 2017

REX TILLERSON AND THE MYTHS,LIES AND OIL WARS TO COME&CONFESSIONS OF A "EX" PEAK OIL BELIEVER

Rex Tillerson and the Myths, Lies and Oil Wars to Come
Rex Tillerson, former CEO of the Exxon/Mobil oil colossus is not designated Secretary of State because of his diplomatic experience. He is there because clearly the Trump Project of those Patriarchs behind Trump–ones such as Warren Buffett, David Rockefeller, Henry Kissinger and others–want a person from Big Oil guiding American foreign policy the coming four years. Already as President, Trump has given the green light to the controversial KeystoneXL pipelines that will not ship US oil, but costly Canada Tar Sands sludge. His EPA plans a friendly stance to the environmental hazards of shale oil production. But most essential, with Secretary Tillerson, the US plans a major reorganization of control over oil, reminding of the oft-cited Kissinger statement, “If you control the oil you control entire nations or groups of nations.”
I want to give here a personal account of the change in my own belief about the genesis of hydrocarbons as I feel it will become increasingly important in the near future to grasp precisely what the Oil Game of the Big Four Anglo-American oil giants–ExxonMobil, Chevron, Shell and BP–is truly about. It’s about creating myths, lies and ultimately oil wars based on those myths and lies.
It was during the period in late 2002 as it became clear that the Bush-Cheney US Administration was determined to destroy Iraq and depose Saddam Hussein. How a US government could risk a potential break with its European and other major allies for any real or imagined threat from Iraq at that point puzzled me greatly. There must be a deeper ground, I told myself.
Then a friend sent me an article from a now-defunct website, From The Wilderness, founded by the late Mike Ruppert. The article laid out a major argument as to how the volume of oil in the ground was finite and disappearing rapidly. It argued that the single largest oil field in history, Ghawar in Saudi Arabia, was so depleted that it needed water injection of millions of barrels daily to get an ever declining output of crude oil. They argued that Russia was past the “peak” in its oil. They illustrated their notion with the famous Gaussian bell curve graph. The world, after more than a Century in the hydrocarbon era, had consumed so much oil that we were near to “absolute peak.” Or so they claimed.
Absolute Peak?
I dug deeper, found other articles on the peak oil theme. It seemed to offer an explanation for the mad Iraq War. After all, Iraq according to estimates had the world’s second largest undeveloped reserves of oil after Saudi Arabia. If oil was in such short supply, it would offer an explanation.
I decided I should go deeper on such a pivotal question as the future of world oil and its potential impact on the very questions of war and peace, world prosperity or famine.
I went to the annual conference of something calling itself the Association for Study of Peak Oil (ASPO), held in May 2004 in Berlin. There I met the gurus of Peak Oil–Colin Campbell, a retired Texaco geologist whose research on well production had given the peak oil movement a seeming scientific foundation; Matt Simmons, a Texas oil banker who had writen a book titled Twilight in the Desert claiming Ghawar was well past peak. Mike Ruppert was also there as was peak oil author Richard Heinberg.
Far from being treated to a high level scientific demonstration of the geophysics behind peak oil, however, I was gravely disappointed to be witness to bitter, acrimonious verbal battles between peak oil critics such as an energy expert from the Paris International Energy Agency and various peak oil advocates who managed to lob mere ad hominem attacks on the Paris speaker rather than lay out serious science.
I decided to make a meeting with the then-President of ASPO International, Swedish atomic physicist, Kjell Aleklett, a few weeks later, at his University in Uppsala, Sweden, in an attempt to get a deeper scientific argument for Peak Oil. There Aleklett treated me to his latest slide show. He argued that, as oil was a fossil fuel, we knew, through study of plate tectonics, where all major oil deposits were to be found. Then, citing depletion of production in the North Sea, in Ghawar, Texas and a few other spots, Aleklett claimed, “voila! The case is proven.” For me it was anything but proven.
An alternative view
At that point, presented by Aleklett with what could only be described as a slide show loaded with unproven assertions, I began to question my earlier conviction about peak oil. Months before, a German researcher friend had sent me a paper by a group of Russian geophysicists on something they called “abiotic origins” of hydrocarbons. I had filed it for future reading. Now I opened it and read. I was impressed, to put it mildly.
As I searched more translations of the Russian scientific abiotic papers, I dug deeper. I learned of the highly-classified Soviet era research begun in the 1950's at onset of the Cold War. Stalin had given a mandate to the leading Soviet geo-scientists to, simply put, insure that the USSR was entirely self-sufficient in oil and gas. They should not repeat the fatal error that had contributed to Germany’s losing two world wars–lack of oil self-sufficiency.
Being serious scientists, they took nothing for granted. They began their work with an exhaustive search of world scientific literature for rigorous proof of the genesis of hydrocarbons, beginning with the accepted fossil fuel theory. To their shock, they found not one serious scientific proof in the entire literature.
I then read of the cross-disciplinary researches by academics such as Professor V.A. Krayushkin, head of the Department of Petroleum Exploration in the Institute of Geological Sciences of the Ukrainian Academy of Sciences in Kiev, one of the leading abiotic scientists.
Krayushkin presented a paper following the end of the Cold War to a 1994 Santa Fe, New Mexico conference of DOSECC (Drilling, Observation and Sampling of the Earth’s Continental Crust). There Krayushkin presented his researches of the Dnieper-Donets region of Ukraine. Traditional mainstream geology would have argued that that region would be barren of oil or gas. Traditionally-trained geologists had argued it senseless to drill for oil or gas there because of the complete absence of any “source rock” — the special geological formations which, according to Western geological theory, were the unique rocks from which hydrocarbons were generated or were capable of being generated – presumably, the only places where oil could be found, hence the term “source.”
What Krayushkin presented to the disbelieving audience of American geologists and geo-scientists went against their entire oil genesis training. Krayushkin argued that the oil and gas discoveries in the Ukraine basin came from what geologists called ‘crystalline basement,’ deep rocks where Western geological theory claimed oil and gas (which they termed ‘fossil fuels,’) could not be found. No dinosaur fossils nor tree remains could have been buried so deep, the Western theory went.
Yet the Russians had found oil and gas there, something tantamount to Galileo Galilei telling the Holy Inquisition that the Sun — and not the Earth — was the center of our system. According to one participant, the audience was not at all amused by the implications of Russian geophysics.
The speaker from Kiev went on to tell the scientists at Santa Fe, New Mexico that the Ukrainian team’s efforts to look for oil where conventional theory insisted no oil could be found had, in fact, yielded a bonanza in commercial oil and gas fields.
He described in detail the scientific tests they had conducted on the discovered petroleum to evaluate their theory that oil and gas originated not near the surface – as conventional fossil fuel theory assumes – but rather at great depth in the Earth, some two hundred kilometers deep. The tests confirmed that the oil and gas had indeed originated from great depth.
The speaker clearly explained that the Russian and Ukrainian scientists’ understanding of the origin of oil and gas was as different from what the Western geologists had been taught as was day from night.
More shocking to the audience was Krayushkin’s report that during the first five years of exploration of the northern part of the Dneiper-Donets Basin in the early 1990’s, a total of 61 wells had been drilled, of which 37 were commercially productive, a success rate of more than 60%. For an oil industry where a 30% success rate was typical, 60% was an impressive result. He described, well-by-well, the depths, oil flows and other details.
Several of the wells were at a depth of more than four kilometers, a depth of roughly 13,000 feet into the Earth and some produced as much as 2600 barrels of crude oil a day, worth almost $3 million per day at 2011 oil prices.
Following such reading, I came into personal contact with one of the leading Russian abiotic scientists, Vladimir Kutcherov, then a professor at the Swedish Royal Institute of Technology, Sweden’s ETH or MIT. We met several times and he tutored me in the confirmed deep earth origins of all hydrocarbons. Not from dead dinosauer detritis and biological remains. Rather oil is being constantly generated from deep in the core of the Earth in the giant nuclear oven we call the core. Under enormous temperature and pressure, the primal methane gas is forced to the surface through what they term migration channels in the Earth’s mantle. Indeed, Kutcherov demonstrated that existing “depleted” oil wells, left capped for several years, had been proven to “refill” with new oil from deep under. Depending on the elements the methane migrates through on its upwards journey, it remains gas, becomes crude oil, tar or coal.
The implications of the deep Earth genesis of hydrocarbons were profound and forced me to change my previously-accepted belief. I read further the fascinating geophysical theories of the brilliant German scientist, Alfred Wegener, the true discoverer of what in the 1960's was dubbed Plate Tectonics. I came to realize that our world is, as the Dutch oil economist, Peter O’dell famously put it, “not running out of oil, but running into oil.” Everywhere, from offshore Brazil to Russia, to China, to the Middle East. I wrote what became one of my most read online articles, “Confessions of an Ex-Peak Oil Believer,” in 2007.
Indeed I realized that the entire foundations of Western petroleum geology was a kind of religion. Rather than accept the Divine Birth, Peak Oil “church-goers” accepted the Divine Fossil Origins. No proof needed, only belief. To this day there exists not a single serious scientific paper proving the fossil genesis of hydrocarbons. It was posited in the 1760’s as an untested hypothesis, by Russian scientist Mikhail Lomonosov. It has served the American oil industry, especially of the family Rockefeller, to build an immense fortune based on a myth of oil scarcity.
Today, clearly the new US Administration under a President Trump, with his ExxonMobil Secretary of State Rex Tillerson, is returning to the era of Big Oil after eight years of Obama and alternative strategies. If our world is to avoid yet more carnage and unnecessary wars over bountiful oil, it would be important to study the true history of our Age of Oil. In 2012 I published a book based on this work titled Myths, Lies and Oil Wars. For those interested, I’m convinced you will find it a useful alternative.

F. William Engdahl is strategic risk consultant and lecturer, he holds a degree in politics from Princeton University and is a best-selling author on oil and geopolitics, exclusively for the online magazine “New Eastern Outlook”
Confessions of an “ex” Peak Oil Believer


By F William Engdahl, September 14, 2007
 
The good news is that panic scenarios about the world running out of oil anytime soon are wrong. The bad news is that the price of oil is going to continue to rise. Peak Oil is not our problem. Politics is. Big Oil wants to sustain high oil prices. Dick Cheney and friends are all too willing to assist.

On a personal note, I’ve researched questions of petroleum, since the first oil shocks of the 1970’s. I was intrigued in 2003 with something called Peak Oil theory. It seemed to explain the otherwise inexplicable decision by Washington to risk all in a military move on Iraq.

Peak Oil advocates, led by former BP geologist Colin Campbell, and Texas banker Matt Simmons, argued that the world faced a new crisis, an end to cheap oil, or Absolute Peak Oil, perhaps by 2012, perhaps by 2007. Oil was supposedly on its last drops. They pointed to our soaring gasoline and oil prices, to the declines in output of North Sea and Alaska and other fields as proof they were right.

According to Campbell, the fact that no new North Sea-size fields had been discovered since the North Sea in the late 1960’s was proof. He reportedly managed to convince the International Energy Agency and the Swedish government. That, however, does not prove him correct.

Intellectual fossils?

The Peak Oil school rests its theory on conventional Western geology textbooks, most by American or British geologists, which claim oil is a ‘fossil fuel,’ a biological residue or detritus of either fossilized dinosaur remains or perhaps algae, hence a product in finite supply. Biological origin is central to Peak Oil theory, used to explain why oil is only found in certain parts of the world where it was geologically trapped millions of years ago. That would mean that, say, dead dinosaur remains became compressed and over tens of millions of years fossilized and trapped in underground reservoirs perhaps 4-6,000 feet below the surface of the earth. In rare cases, so goes the theory, huge amounts of biological matter should have been trapped in rock formations in the shallower ocean offshore as in the Gulf of Mexico or North Sea or Gulf of Guinea. Geology should be only about figuring out where these pockets in the layers of the earth , called reservoirs, lie within certain sedimentary basins.

An entirely alternative theory of oil formation has existed since the early 1950’s in Russia, almost unknown to the West. It claims conventional American biological origins theory is an unscientific absurdity that is un-provable. They point to the fact that western geologists have repeatedly predicted finite oil over the past century, only to then find more, lots more.

Not only has this alternative explanation of the origins of oil and gas existed in theory. The emergence of Russia and prior of the USSR as the world’s largest oil producer and natural gas producer has been based on the application of the theory in practice. This has geopolitical consequences of staggering magnitude.

Necessity: the mother of invention

In the 1950’s the Soviet Union faced ‘Iron Curtain’ isolation from the West. The Cold War was in high gear. Russia had little oil to fuel its economy. Finding sufficient oil indigenously was a national security priority of the highest order.

Scientists at the Institute of the Physics of the Earth of the Russian Academy of Sciences and the Institute of Geological Sciences of the Ukraine Academy of Sciences began a fundamental inquiry in the late 1940’s: where does oil come from?

In 1956, Prof. Vladimir Porfir’yev announced their conclusions: ‘Crude oil and natural petroleum gas have no intrinsic connection with biological matter originating near the surface of the earth. They are primordial materials which have been erupted from great depths.’ The Soviet geologists had turned Western orthodox geology on its head. They called their theory of oil origin the ‘a-biotic’ theory—non-biological—to distinguish from the Western biological theory of origins.

If they were right, oil supply on earth would be limited only by the amount of hydrocarbon constituents present deep in the earth at the time of the earth’s formation. Availability of oil would depend only on technology to drill ultra-deep wells and explore into the earth’s inner regions. They also realized old fields could be revived to continue producing, so called self-replentishing fields. They argued that oil is formed deep in the earth, formed in conditions of very high temperature and very high pressure, like that required for diamonds to form. ‘Oil is a primordial material of deep origin which is transported at high pressure via ‘cold’ eruptive processes into the crust of the earth,’ Porfir’yev stated. His team dismissed the idea that oil is was biological residue of plant and animal fossil remains as a hoax designed to perpetuate the myth of limited supply.

Defying conventional geology

That radically different Russian and Ukrainian scientific approach to the discovery of oil allowed the USSR to develop huge gas and oil discoveries in regions previously judged unsuitable, according to Western geological exploration theories, for presence of oil. The new petroleum theory was used in the early 1990’s, well after the dissolution of the USSR, to drill for oil and gas in a region believed for more than forty-five years, to be geologically barren—the Dnieper-Donets Basin in the region between Russia and Ukraine.

Following their a-biotic or non-fossil theory of the deep origins of petroleum, the Russian and Ukrainian petroleum geophysicists and chemists began with a detailed analysis of the tectonic history and geological structure of the crystalline basement of the Dnieper-Donets Basin. After a tectonic and deep structural analysis of the area, they made geophysical and geochemical investigations.

A total of sixty one wells were drilled, of which thirty seven were commercially productive, an extremely impressive exploration success rate of almost sixty percent. The size of the field discovered compared with the North Slope of Alaska.  By contrast, US wildcat drilling was considered successful with a ten percent success rate. Nine of ten wells are typically “dry holes.”

That Russian geophysics experience in finding oil and gas was tightly wrapped in the usual Soviet veil of state security during the Cold War era, and went largely unknown to Western geophysicists, who continued to teach fossil origins and, hence, the severe physical limits of petroleum. Slowly it began to dawn on some strategists in and around the Pentagon well after the 2003 Iraq war, that the Russian geophysicists might be on to something of profound strategic importance.

If Russia had the scientific know-how and Western geology not, Russia possessed a strategic trump card of staggering geopolitical import. It was not surprising that Washington would go about erecting a “wall of steel”—a network of military bases and ballistic anti-missile shields around Russia, to cut her pipeline and port links to western Europe, China and the rest of Eurasia. Halford Mackinder’s worst nightmare--a cooperative convergence of mutual interests of the major states of Eurasia, born of necessity and need for oil to fuel economic growth--was emerging. Ironically, it was the blatant US grab for the vast oil riches of Iraq and, potentially, of Iran, that catalyzed closer cooperation between traditional Eurasian foes, China and Russia , and a growing realization in western Europe that their options too were narrowing.

The Peak King

Peak Oil theory is based on a 1956 paper done by the late Marion King Hubbert, a Texas geologist working for Shell Oil. He argued that oil wells produced in a bell curve manner, and once their “peak” was hit, inevitable decline followed. He predicted the United States oil production would peak in 1970. A modest man, he named the production curve he invented, Hubbert’s Curve, and the peak as Hubbert’s Peak. When US oil output began to decline in around 1970 Hubbert gained a certain fame.

The only problem was, it peaked not because of resource depletion in the US fields. It “peaked” because Shell, Mobil, Texaco and the other partners of Saudi Aramco were flooding the US market with dirt cheap Middle East imports, tariff free, at prices so low California and many Texas domestic producers could not compete and were forced to shut their wells in.   

Vietnam success

While the American oil multinationals were busy controlling the easily accessible large fields of Saudi Arabia, Kuwait, Iran and other areas of cheap, abundant oil during the 1960’s, the Russians were busy testing their alternative theory. They began drilling in a supposedly barren region of Siberia. There they developed eleven major oil fields and one Giant field based on their deep ‘a-biotic’ geological estimates. They drilled into crystalline basement rock and hit black gold of a scale comparable to the Alaska North Slope.

They then went to Vietnam in the 1980s and offered to finance drilling costs to show their new geological theory worked. The Russian company Petrosov drilled in Vietnam’s White Tiger oilfield offshore into basalt rock some 17,000 feet down and extracted 6,000 barrels a day of oil to feed the energy-starved Vietnam economy. In the USSR, a-biotic-trained Russian geologists perfected their knowledge and the USSR emerged as the world’s largest oil producer by the mid-1980’s. Few in the West understood why, or bothered to ask. 

Dr. J. F. Kenney is one of the only few Western geophysicists who has taught and worked in Russia, studying under Vladilen Krayushkin, who developed the huge Dnieper-Donets Basin. Kenney told me in a recent interview that “alone to have produced the amount of oil to date that (Saudi Arabia’s) Ghawar field has produced would have required a cube of fossilized dinosaur detritus, assuming 100% conversion efficiency, measuring 19 miles deep, wide and high.” In short, an absurdity.

Western geologists do not bother to offer hard scientific proof of fossil origins. They merely assert as a holy truth. The Russians have produced volumes of scientific papers, most in Russian. The dominant Western journals have no interest in publishing such a revolutionary view. Careers, entire academic professions are at stake after all.

Closing the door

The 2003 arrest of Russian Mikhail Khodorkovsky, of Yukos Oil, took place just before he could sell a dominant stake in Yukos to ExxonMobil after a private meeting with Dick Cheney. Had Exxon got the stake they would have control of the world’s largest resource of geologists and engineers trained in the a-biotic techniques of deep drilling.

Since 2003 Russian scientific sharing of their knowledge has markedly lessened. Offers in the early 1990’s to share their knowledge with US and other oil geophysicists were met with cold rejection according to American geophysicists involved.

Why then the high-risk war to control Iraq? For a century US and allied Western oil giants have controlled world oil via control of Saudi Arabia or Kuwait or Nigeria. Today, as many giant fields are declining, the companies see the state-controlled oilfields of Iraq and Iran as the largest remaining base of cheap, easy oil. With the huge demand for oil from China and now India, it becomes a geopolitical imperative for the United States to take direct, military control of those Middle East reserves as fast as possible. Vice President Dick Cheney, came to the job from Halliburton Corp., the world’s largest oil geophysical services company. The only potential threat to that US control of oil just happens to lie inside Russia and with the now-state-controlled Russian energy giants. Hmmmm.

According to Kenney the Russian geophysicists used the theories of the brilliant German scientist Alfred Wegener fully 30 years before the Western geologists “discovered” Wegener in the 1960’s. In 1915 Wegener published the seminal text, The Origin of Continents and Oceans, which suggested an original unified landmass or “pangaea” more than 200 million years ago which separated into present Continents by what he called Continental Drift.

Up to the 1960’s supposed US scientists such as Dr Frank Press, White House science advisor referred to Wegener as “lunatic.” Geologists at the end of the 1960’s were forced to eat their words as Wegener offered the only interpretation that allowed them to discover the vast oil resources of the North Sea. Perhaps in some decades Western geologists will rethink their mythology of fossil origins and realize what the Russians have known since the 1950’s. In the meantime Moscow holds a massive energy trump card

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