Freedom of Expression
Byron King an investment expert has discovered the greatest lie of the century by Saudi Arabia to all so called intelligent world. The intelligence agencies and the conventional "experts" are dead wrong. The oil is not there. Byron King is writing for his American clients but the essence of this letter applies to all the mainstream world since by now, we are all financially so much interconnected that if US catches cold India shall sneeze. That is why I thought to put it on my blog for my readers to know what horrible things are happening in the power and fuel sectors!
Remember how President Obama bowed to King Abdullah of Saudi Arabia? For any proud American that was bad enough. There is worse; King Abdullah of Saudi is playing Obama for a fool. He knows something Obama doesn’t. If Obama does know, he’s sure not acting on it. And in the next five minutes, you’ll know it too. You need to know this now; because by the time Obama acts, it’ll make the market meltdown of 2008 look like a picnic.
That bow Obama made to Abdullah at a summit in London says everything about how the Saudis have made us their oil slaves. Think about it… the American president, bowing and scraping to a foreign monarch — the king of a country where women can’t drive and criminals are beheaded in public. The country which can be conquered in just a few days by US! Worse it is because; we are becoming more and more dependent on the Saudis for energy because, Obama wants to close off even more of the USA to oil exploration.
But it’s even worse than that. Because King Abdullah’s about to drop a bombshell on all of us. Obama doesn’t act like he has a clue it’s coming. But his predecessor did. If some well-informed experts are right, Saudi Arabia's oil reserves are a fraction of what they've been telling us. Why does it matter? Because everyone has believed for decades that Saudi Arabia's oil supply is virtually unlimited. That's what the Saudis have said over and over again for more than 30 years. If an oil shortage threatens to cause a recession or a market crash, we can count on the Saudis to come through. So people think. But one of America's top oil experts told much earlier to President George Bush exactly what I'm telling you now. In fact, this same man was a consultant to the secretive task force that drew up Vice President Dick Cheney's energy plan in 2001.
In other words, the guy is a heavy hitter who knows the energy business. He warned Bush that the Saudis don't have anything near the oil reserves they claim. They already pump less oil than most "experts" think and here's the real kicker...
Saudi oil production is about to drop sharply. And it will keep going down for good. Other experts have analyzed the numbers and come to the same conclusions. If the charges are true — and I believe they are — we could be facing...total crash!!
Oil will cost not less than Rs. 60 per liter soon (most probably by 2012) and the cost will escalate at 10% per year rate!! You may not like this but cannot help talk the truth.
Fact of the matter is; the oil is running out. It's as simple as that.
But that's not what you hear from so-called experts. If you ask government officials, our intelligence agencies and even powerful financiers, they tell you the opposite. They say the Saudis could quickly double their oil production from the current level if they wanted to. And given a few years, they think the Saudis could produce four times as much oil as they do now. The intelligence agencies and the conventional "experts" are dead wrong. The oil is simply not there. Most probable these experts (?) are joined up with Saudi!
The oil and gas shortages we've seen lately are nothing compared with what's on the way. When the truth comes out, it will send shock waves through the world economy. Everyone will find out too late — when gasoline soars to 60 or 70 Rs. or more per liter. I'm writing today to give you a heads-up. Don't be surprised if certain commodities and resource stocks soar three, five or even 10 times over. As simple things as travel will cost so much that you will have to plan every travel program very carefully.
How Saudi are able to do it we should know and so read this; Americans used to run Aramco, the huge oil company that manages the Saudi fields. But in 1979, the Saudis booted U.S. out and took over.
And then a funny thing happened... The Saudis started keeping everything a secret. No one knows for sure how much oil they've got in the ground, or how much they produce each year or how much they could produce if they wanted to push it to the maximum. It's all secret. Experts try to figure out how much oil the Saudis sell by monitoring tanker traffic in and out of the world's ports. That is how little we know for sure. That is because we do not know whether the tankers are full or half!
After the Saudis took over, an even funnier thing happened... Their figures for proven reserves kept going up and up and up — even though they didn't find any major new oil fields! In 1979, the Saudis adjusted proven reserves upward by 50 billion barrels. Then eight years after that, their proven reserves magically grew by another 100 billion barrels. Their estimated reserves increased by 150% in nine years — to a total of 260 billion barrels. Even though they didn't find a single major new oil field! Armaco new the estimated contains of the Saudi oil fields, those figures do not match with this.
For 16 years, from 1979 through 2005, they have claimed they own 260 billion barrels of proven oil in the ground. The figure never goes down, even though they pumped out 46 billion barrels up to that period. Let me see...260 minus 46 equal 260. Saudi mathematics…!
Based on these bogus figures, the Saudis claim they can produce as much oil as the world wants for the next 50 years. As recently as 2004, they claimed their reserve estimates are actually conservative. That's why most of the world's governments and intelligence services believe the Saudis could pump 20 million barrels of oil a day if they wanted to. Trouble is; we've got no proof except their say-so. If it were true, we wouldn't have a thing to worry about. But it's not. Before Aramco's American owners were shown the door in 1979, they told Congress that Saudi Arabia had proven reserves of 110 billion barrels. There have been no major new discoveries, so 110 billion barrels was probably about right. And since then, about half of that has been used up. So why do the Saudis insist everything is just fine and they have 260 billion barrels of reserves? One reason is; they wanted to discourage non-OPEC nations from looking for more oil or switching to alternatives.
It was a tricky plan, and it worked perfectly. But that wasn't the only reason the Saudis lied about their reserves. They did it because everyone does it! Everyone in OPEC, that is all members of OPEC are doing the same trick to keep the world at its feet, but how long they can fool?
In the 1980s, OPEC's claim of total reserves magically leaped from 353 to 643 billion barrels without a single major discovery. Industry experts call it the quota war. You see, OPEC had to limit how much oil each member could sell, because prices were too low. The quotas were based on... each member's oil reserves! That's right: The amount of oil OPEC would let a member pump depended on how much that member had in the ground. So it paid for OPEC members to claim the biggest reserves they could. And that's what they did. The Saudis alone jacked up their estimate by about 100 billion. Kuwait added 50% to its reserves in one year, 1985. Venezuela doubled its reserves in 1987. Iraq and Iran doubled their estimates, too.
What's more, OPEC members did like the Saudis and kept their reserve estimates the same year after year, as if no oil were being pumped out and sold. Everyone claimed to have a bottomless well. Now, if you're like me, you prefer to base your financial decisions on the real world, not on a fantasy. Let's look at how much oil there really is...
In the 1970s, when Western managers were still in charge, they believed for a time that Saudi output could reach 20 million barrels a day. But by the time the Americans lost control in 1979, they figured the peak would be 12 million. They also predicted that peak production would last only 15–20 years. 1979 plus 20 is 1999. We're past the peak, if these men were right. But we already know they were too optimistic. The truth is that Saudi production never got to 12 million. "In all probability, output peaked in 1981 at an unsustainable level of about 10.5 million barrels per day," according to Matthew R. Simmons, a leading oil industry authority.
And yet the lies go on... In 2004, Saudi officials claimed they boosted production to 9.5 million barrels per day and maintained that level for five months. It's almost sure they were lying. The International Energy Agency is the group that keeps an eye on these things for the developed, oil-importing countries. The IEA could find no sign the Saudis were selling more oil. As far as anyone can tell, they pump only around five million barrels a day, and that's all they've pumped for years.
In spite of being lied to at least once, the IEA, the U.S. Department of Energy and other forecasters believe the Saudi claims. ALL their projections of our energy future ALWAYS assume the Saudis could produce 15–20 million barrels a day.
The lies have worked. Not only do Western politicians believe them, but so do many oil industry experts and investors with huge amounts of money at stake. They've been had.
Conservative estimation suggests that all OPEC oil will last for one more decade and that with ever increasing prices. We know as of today world still not ready for any sure and perfectly reliable substitute for petrol and diesel so only alternative that remains for us to think of is to conserve on available oil.
As for India is concerned immediate policy decision to control BHp of personal cars is recommended. We have personal cars, having horse power as high as 50 to 80, which is not required. Experts opine that these cars can ply with just 10 to 15 hp. If this restriction is imposed we shall be saving on oil up to 50% and that is a big saving. If this policy is accepted by other countries and we all avoid big sized cars altogether the world oil stock will last for another 20 more years. Other changes those go with this correction are, use of fiberglass reinforced plastic bodies.
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