Originally posted by loam
The Global Oil Scam
$2.5 Trillion – That’s the size of the global oil scam.
It’s a number so large that, to put it in perspective, we will now begin measuring the damage done to the global economy in “Madoff Units” ($50Bn rip-offs). That’s right – $2.5Tn is 50 TIMES the amount of money that Bernie Madoff scammed from investors in his lifetime, yet it is also LESS than the MONTHLY EXCESS price the global population is being manipulated into paying for a barrel of oil.
Goldman Sachs (GS), Morgan Stanley (MS), BP (BP), Total (TOT), Shell (RDS.A), Deutsche Bank (DB) and Societe Generale (SCGLY.PK) founded the Intercontinental Exchange (ICE) in 2000. ICE is an online commodities and futures marketplace. It is outside the US and operates free from the constraints of US laws. The exchange was set up to facilitate “dark pool” trading in the commodities markets. Billions of dollars are being placed on oil futures contracts at the ICE and the beauty of this scam is that they NEVER take delivery, per se. They just ratchet up the price with leveraged speculation using your TARP money. This year alone they ratcheted up the global cost of oil from $40 to $80 per barrel.
A Congressional investigation into energy trading in 2003 discovered that ICE was being used to facilitate “round-trip” trades. ” Round-trip” trades occur when one firm sells energy to another and then the second firm simultaneously sells the same amount of energy back to the first company at exactly the same price. No commodity ever changes hands. But when done on an exchange, these transactions send a price signal to the market and they artificially boost revenue for the company. This is nothing more than a massive fraud, pure and simple.
The lawlessness is on such a grand scale it's almost pointless to try and stop it.
Look at this interesting ATS thread from over a year ago:
‘Perhaps 60% of Today’s Oil Price is Pure Speculation’
It's source article stated at the time:
...how today’s oil prices are really determined is done by a process so opaque only a handful of major oil trading banks such as Goldman Sachs or Morgan Stanley have any idea who is buying and who selling oil futures or derivative contracts that set physical oil prices in this strange new world of “paper oil.”
With the development of unregulated international derivatives trading in oil futures over the past decade or more, the way has opened for the present speculative bubble in oil prices.
In the most recent sustained run-up in energy prices, large financial institutions, hedge funds, pension funds, and other investors have been pouring billions of dollars into the energy commodities markets to try to take advantage of price changes or hedge against them. Most of this additional investment has not come from producers or consumers of these commodities, but from speculators seeking to take advantage of these price changes. The CFTC defines a speculator as a person who “does not produce or use the commodity, but risks his or her own capital trading futures in that commodity in hopes of making a profit on price changes.”
The large purchases of crude oil futures contracts by speculators have, in effect, created an additional demand for oil, driving up the price of oil for future delivery in the same manner that additional demand for contracts for the delivery of a physical barrel today drives up the price for oil on the spot market. As far as the market is concerned, the demand for a barrel of oil that results from the purchase of a futures contract by a speculator is just as real as the demand for a barrel that results from the purchase of a futures contract by a refiner or other user of petroleum.
So not only were the players neither producers nor consumers, they really weren't buyers or sellers either. The lion's share of the entire market was nothing but a sham!
Now you know how it really was done.
[edit on 13-11-2009 by loam]
According to the Guardian (U.K.), an anonymous senior official with the International Energy Agency (IEA) alleges that oil reserve estimates and decline rates given in the agency's 2009 World Energy Outlook were deliberately massaged, and that a looming oil crisis is actually much closer than the agency's reports have been indicating. The whistleblower told the Guardian that there is suspicion that the agency bowed to U.S. pressure to minimize oil production's decline, and exaggerate the chances of discovering new fields in order to forestall fear and panicked buying. These allegations are fueling proponents of the "peak oil" theory and causing many to question the credibility of the IEA's latest report. The reports issued by the IEA are widely used to inform the decisions of industry leaders and world governments. Read more here. Also, check out Scientific American's take on these allegations. It says that the whistleblower's story has been corroborated by another official, who has left the agency and still wishes to remain anonymous. That piece also has a link concerning the U.S. Department of Energy's new "mad science lab," which has "been spraying funding in all directions" to find breakthroughs in energy efficiency and petroleum alternatives.
The oil patch mumbo jumbo continues unabated. Today, Rex Tillerson, the CEO of the nation's largest oil company, Exxon, took a minute or two to instruct us about the reasons for the current price of oil. This is the same personage who, a while back informed us, his customers, that "ethanol is moonshine."
This time around, according to Tillerson, "Inventory levels are at historic high levels--especially in the U.S." he then provides us with his particular self-serving oil patch rationalization for high oil prices.
You see, it is not the mechanization of OPEC of which Exxon and its peers are the primary beneficiaries, nor the speculation of oil traders and bank holding companies, nor the possibility that the producers, with their enormous cash reserves, might be gaming the price of oil on the exchanges. No, in the spirit of that great American philosopher Alfred E. Neuman, Mr. Tillerson has come up with a causation that is outside the perceived responsibility of the oil industry. Who, him worry? You see, it mostly rests with the currency effect of a weak dollar.
According to Tillerson some $20/25 per barrel is due to the erosion of the dollar. Really? Since February of this year the price of oil has increased some 250% from $33/bbl to reaching $80/bbl Just a few days ago. This while the value of the dollar has eroded some 15% only. A relationship between the price of oil and the erosion of the dollar on a percentage basis should bring the price of oil to approximately $38/bbl. Certainly not the near $80 we are transferring to Exxon and their comrades in arms.
Far be it for the industry to play it straight, to simply state that price as currently constituted has nothing to do with market dynamics of supply and demand. Something far more sinister is afoot and it is long past due that our oversight agencies such as the CFTC take a very serious look at how our commodity exchanges are contributing to these distortions.
But then again, within the confines of the oil industry Grimm's Fairy Tale narrative, Mr. Tillerson's imaginative turns of phrase are always welcome.
The Zero-Pollution MDI Air Car, invented in France and licensed by Tata Motors in India, is coming to American shores. Zero Pollution Motors have announced they will begin taking reservations for the first U.S. deliveries in the next couple of months, but it will be 2010 before Americans get their first taste of the ingenious compressed-air motor, which runs to 35mph entirely on air, or uses a trickle of petrol to heat and compress more air to reach higher speeds up to 90mph. It'll cost next to nothing to run (how do 30,000km service intervals sound?), have a range of up to 1000 miles, and retail for well under US$20,000.
Originally posted by sharps
I think what's even more astonishing is that it is on average costing the US military $400 for each and every gallon of gas that makes it into their vehicles in afghanistan. That's 'fully burdened' meaning including logistical costs.
Yes you heard right, when the price is hovering around $75 per Barrel of 42 US gallons (imperial gallons=35 and litres equals 159) it is really costing the US military $400 times 42 which equals $16,800 per barrel. Their excuse is it's difficult to get hold of the fuel. I'm assuming no one has ever told them where oil comes from, it's not that far really, it's only an inch on my map.
I look at that figure and I think this simply can't be true. I'm Hoping someone will debunk me because this ought to be a massive scandal even with it being 'fully burdened'.
Originally posted by HappilyEverAfter
I dont believe that oil has a finite end.
That would mean that the process inside the earth that has made the oil being drawn out has ceased.
I've held the belief for a while that OIL IS RENEWING.
(we just arent informed)