The Colossal Oil Fraud You Probably Don't Know About.

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'.

help.lockergnome.com...

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.

More...

Amazing.

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.

:shk:





[edit on 13-11-2009 by loam]

I challenge you to get this ( All of this ) information on the news. Fox, CNN, Twitter, get this in the media now.

Please!


Eye of Eagle

Also how much of the price increase is due to investors looking at the amount of oil out there and how much oil the companies claim is still in the ground.

All it would take is a group of oil companies to understate there reserves still in the ground by half to make it look like the supply's were running out faster then they really are.

I know a company drilled a test well in the Calif desert about 15 years ago and claimed to find nothing.
But they never have given up there exploratory lease on the property.
I check the BLM records every couple years because i heard rumors that they did find something,
.

Yes there is a lot of junk in the market, all markets. However many ones and zeroes you have dancing around on your computer screen is not what matters. What really matters is the number of barrels used toward the economy. The IEA whistleblower story would indicate we are heading for trouble in that department.

IEA whistleblower raises doubts

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.

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[edit on 15-11-2009 by GAOTU789]

Just to add insult to injury......

Thank You, Exxon CEO Rex Tillerson, For Educating Us On Oil Prices

Raymond J. Learsy
Scholar and author, "Over a Barrel: Breaking Oil’s Grip on Our Future"
Posted: November 13, 2009 11:08 AM

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.

www.huffingtonpost.com...


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[edit on 15-11-2009 by GAOTU789]

Kudos to you for brining this to the attention of our members.


Speculation played a great part in oil hitting $147 US/bbl last year, and played an even bigger part in precipitating the financial cascade that we're still reeling from now.

Sadly, the worst isn't over. There is every indication that we'll be seeing a larger speculative bubble sometime mid-next year. As to what follows that - I think you can guess. This time however, the Fed doesn't have the reserves to provide a bail-out. Next year's Phase II of the crisis is looking to be much worse.

The recent Guardian newspaper article on the IEA Whistleblower is potentially going to bring forward this crisis and make it that much worse - as the growing realisation that we are maxed out in oil production hits home.

Next year in all probability is going to be much worse than what preceded it.

I would also recommend this Rolling Stone article regarding the fiscal gluttony of Wall Street.

I can't stress enough the importance to members of familiarising yourself with the subject of oil and the global economy - it is as important a topic as you are likely to see in your lifetime!! And I don't say this to you lightly.

S&F'd

[edit on 13-11-2009 by mckyle]

[edit on 13-11-2009 by mckyle]

This is another indicator that we need to move away from oil.

Check out this author and his book. As well as the little video. (I have the book)
www.permaculture.com...
The book shows how we can utilize all of americas arable land for food production, but utilize non-arable areas and grow crops of various type from cattails in swampy areas, switchgrass throughout the usa, and many other plants that yield alot more gallons of (ethanol) per acre than corn. He also shows how that if americans switched over to alchol fuel, the jobs created would bring america's unemployment rate down to the single digits. As well the unfermentable mash by-product from distilling the plants is a great organic fertilizer and actually adds a 1/2in to 1 inch in new topsoil every year, without the use of any synthetic fertilizers, which guess what people are petroleum based as well as most of the vitamins on the market. So lets get off the crude and get on alchol it burns cleaner, (less poloution) it will create american jobs thru a whole new industry,(farmers, laborers, refineries, distrubution, gas stations, all american fuel cars) and it will turn our non-arable land into arable farm land by the addition of new topsoil over the years.

reply to post by loam


I believe you are a lot like me, in that you just
want things to make sense and possibly be FAIR!

Well....It's never gonna happen.

Kinda like common sense.... when it is very UN-common!

The sooner we can get away from oil dependence the better, and it is coming soon.

There are numerous agricultural products that produce ethanol and bio-diesel a great deal more efficient than corn. And it seems pretty evident that a great deal of this is being kept as secret as possible. Ag based fuel will be labor intensive and non-centralized, so it is bad news all around for the fat cats.

Here is a link to what everyone should know, but for some reason this new development is rarely mentioned, and people should be screaming about it.

www.gizmag.com...

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.

Pass the French fries please.

reply to post by loam

So your saying Bernie Madoff wasn't such a bad guy after all.

Makes perfect sense.

This may be beside the point that is being made, but to get to a massive oil fraud in Australia, about 4 yrs ago we would fill up a 20ltr jerry can and be charged for 22 ltrs.

When notifying the garage that sold this that their pumps were out of caliberation, they got abusive and told us to leave.

The Dept.of Fir Trading that should have dealt with it didn't, with some current affairs shows doing stories about 'not getting what you pay for' but the punchline was water in the fuel.

Last week, we filled up two 20ltr jerry cans (and yes they are accurately measured) and we were charges for 49.71 ltrs.

That is roughly a 10% rip-off effectively allowed due to nil enforcement/monitoring now blowing out a 20% rip-off.

The difference is going straight in the pockets of those who 'own' the petrol stations.

They are selling many more litres than what they are purchasing from the oil companies.

But this is only one example how th Aussie populace is getting shafted on a regular basis.

I don't think this is any mystery how many years have they been doing this,the old shell game short the market involke scare tatics,just like the stock market,noy unlike the pusher man with heroine,create a dependency and you now control them,face it the big money people have been in control and not likely to release the control,ever hear of an oil company going broke?not unless it was on purpose,face it we are controlled and sadly nothing can be done about it,oil is only one example

But .. but .. they add liquidity to the market! And naked short selling is a price discovery tool!!

Yeah - and my above comments are the basic argument they come up with to disguise their fraud and theft.

Any futures purchased should be delivered, or taxed - say 5% of the VALUE of every trade. Either of those measures would kill this casino.

I will not, and do not condone high frequency trading, short selling of any kind, or speculative trading in futures. All any of that does is drain money from the people who produce and put it in the hands of gamblers - who are playing with rigged dice.

If you require all futures to be delivered - this would die a horrible and instant death. If people want to speculate then, they would have to store the commodity - that is actually a value adding service - if they provide storage and distribution, they add value, so they have a right to profit. Gamblers don't have a right.

The original idea behind the stock market was investors bought a stake in a business, and received profits as dividends. That has gone out the window - now most profits are created by causing fluctuations in the market and skimming money by buying and selling. The preventative measure here is to require stocks to be held for a period of time before being available to sell. I would suggest a minimum of one quarter - but preferably one year is a better time frame.

These things are set up to benefit the scum controllers - the NWO. Each time money is extracted from either the markets or exchanges - either the producer or the consumer, or both, lose. Producers lose because anyone extracting money from the middle of the deal means less profits for them, the consumer loses because any money taken by middle men means increased prices.

Every time the investment banksters make a profit - the average person loses - goods become more expensive, and if you produce them - you get paid less for your work.

It is purely fraudulent and criminal - it extracts value from the economy and produces nothing.

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'.

help.lockergnome.com...

I have read the same figure of $400 in many articles - maybe they all reference one original source, but no-one seems to be debunking it.

One ponders into whose hands does that markup fall? I am sure that many private contractors are charging the DoD for their oil at such rates.

[edit on 14-11-2009 by Amagnon]

Nastiest bit of it all? It is not expensive gas what's at stake here, but an entire "black market" economy. TPTB created the need for oil. Only now, when it seems to be running out, and the wells in the Middle-East are no longer a sure-fire source due to the Arab's fondness for internal strife, "suddenly" all these revolutionary power sources and spurts in battery technology come about.

It seems that those " in" on the oil-scam, have done their utter best to prevent further development in alternative energy-creation(we could have had zero-point energy, or something close, by now me thinks), and only now, their scheme is faltering. Sadly, it is almost too late. The stocks of crude, they have so aptly speculated with are truly running out...

$8,- a gallon gas(I live there and when I fill up my bike ..I KNOW it's rather ridiculous prize..) is an European reality already, it'll be only a matter of time before it is the rule in The USA.

The oil and Car-industry kartels have MADE us dependant on oil..Now they are paying the prize. Small manufacturers of electric vehicles (be it by batteries or Hydrogen) stepped in where GM and their Texaco-ilk cheated/betrayed the consumers out of their hard-earned money(although, they are slowly awakening to the new dawn of being a "bust" consortium wholly due to themselves).

I'd cherish the day that Crude will only be considered "smelly dark mud" and nothing else

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.
The entire idea of a global layer of dead plants and animals rotting to produce the slurry then transformed into oil doesnt ring true with me.
The layers covering all this prehistoric debris would mean that either they sank INTO the earth thru the crust and mantle,
or
the earth has GAINED size by collecting cosmic dust and dirt.
The coal and shale and gases are under pressure and extreme heat and there has to be a constant RENEWING of supply,
maybe not enough to equal the draw of the resource but , think about it,
I've held the belief for a while that OIL IS RENEWING.
(we just arent informed)
www.wnd.com...
Just my 2 pints worth.

[edit on 14-11-2009 by HappilyEverAfter]

IEA whistleblower raises doubts
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.

I love how they use the word massaged instead of misrepresented, tinkered, inflated, lied about, made up any one of the other words that would actually do justice to the act.

Think about this.
Stock market - trading on etrade, etc..
Do you receive stock certificates, probably not cause you want to be able to cash out quikly if the worst happens.
Would your neighbor buy a stock certificate off of you?

The craziest is, people are buying gold, but not physical Gold.
They're doing the same thing.
Is all this Gold physically available for delivery or do the brokers say
screw it let's take his money, everyone isn't going to want to take physical delivery at once... Take it!

Same game different name.
Profit
Profit
Oil price based merely on speculation...

Guys, IMO, government will never hold the long term solution. Everything in this world is and has been a business, including government itself.

If you truly want to change how the world operates, you must rank up to the King from your current title, Pawn.

Now how does one manage to do that...well, if it was that easy of an answer, we would ALL be there.

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)

I totally agree with you. I think the earth is indeed growing as well - but I think it is most likely due to a black hole inside the planet.

These idea's have been well investigated, and from evidence I have seen, they seem well supported.