US Oil reserves in storage at the highest level in 80 years readied for spring clearance sale before it’s value deflates to a fraction of its cost.
This massive ready reserve supply of oil, 425 million barrels and growing, valued at $50 billion dollars just months ago, now hangs like a giant economic sword of Damocles over global energy and petroleum markets.
But the wild card that is also tipping the market is an entirely new source of energy.
The US will soon begin to reduce its giant ready reserve which it must do as it has become the largest producer of oil in the world and the justification for the reserve supply has disappeared – when this happens oil prices will plummet even more. Likely this will happen as soon as the cold winter abates in the next couple of months. Watch to the spring clearance sales. The reserves must begin to be reduced less they become not merely unprofitable commodities given the cost to fill the reserves but truly stranded assets which may not be able to command a price worth their transport to market. Many world energy and oil experts are now forecasting oil prices may soon drop to $20 per barrel.
The picture of what is behind this collapse in the oil markets is surely more complex than many would like to have the public believe. The peaks in crude oil price in excess of $100/bbl as seen between 2008 and 2014 are far from being a historical norms. The early 2000’s were an era of bizarre gamed swings in global energy markets.
Consumption of oil in rapidly growing China, the booming Eurozone and the heavily leveraged US financial energy and financial markets far exceeded production. In contrast during most of the past century, oil rarely cost more than $20-30/bbl, even during times of major crises. During the last 15 years pertrocracies have been rapaciously feasting on deviantly expensive energy leading to an insanity of national authoritarianism, industry and market corruption, and no shortage of international escapades.
But this inside the oil patch explanation doesn’t quite fit the precipitous events of the past year in the oil game.
Energy Game Wild Card
The wild card that is complicating understanding of global energy supplies, especially oil and gas supplies, is now seen to be the rapidly developing COLD FUSION and LENR technologies. This Black Swan’s arrival in the world of oil has been recently warned of by Saudi Arabia’s Oil Minister. It’s now clear that since the 1989 announcement of cold fusion it has been the target of a near perfect smear campaign to keep the revolutionary energy source from competing with the oil cartels, their banksters, and political minions. But keeping such a remarkable scientific fact of Nature and its technological potential down could never last forever.
It’s called “COLD fusion” because the reactions are observed to take place at temperatures ‘colder’ than that inside of the sun and stars, that is the blazing million+ degree environment of “HOT fusion”. Cold fusion can still be plenty hot certainly hot enough to heat water for ones bath and more. For example this recent cold fusion patent filed by Europes giant AIRBUS corporation reveals their designs for cold fusion engines and that they are not the schmucks the oil cartel energy industry bankster propaganda has made of so many.
Today around the world small teams of engineers are building and demonstrating cold fusion energy six ways from sundown that yields energy from the fusion of hydrogen with NO dangerous or radioactive by-products. Cold fusion nuclear reactors capable of producing megawatts of power and replacing major power generation facilities are being hand-built by small teams of workers, 3-6 people, inside the space of a 20ft standard shipping container using components purchasable at any local hardware store. The hydrogen fuel comes from the hydrogen in H2O, that’s water. The energy produced is likely to be too cheap to meter, not that the price of the gadget will be free.
The world’s richest men, including Bill Gates, are being reported on as they make pilgrimages to cold fusion research groups.
Cold Fusion & LENR Now Open Source Technologies
A key element for those who have worked so effectively and dutifully for the past 25 years suppressing and smearing cold fusion, also known as LENR (low energy nuclear reactions), is that they have driven the technology into becoming effectively open source technology. Hundreds of patent applications containing tens of thousands of claimed inventions have been steadfastly rejected by the US and other nations patent processes. The scientists and inventors behind those discoveries have inevitably been unable to keep secret their discoveries which having steadily leaked into the public domain make the field open source. Given the innate simplicity of the techniques and materials needed to produce cold fusion and the corrupt patent system forcing that know how into the open what big business always wants “technological intellectual property barriers to entry” by potential competitors has utterly evaporated.
As a fundamental characteristic of nature, requiring technology no more complicated than Edison’s simple light bulb, and without patent barriers cold fusion and lenr are poised to be rapidly developed and deployed as the peoples power, clean, green, inexpensive with an infinite supply of essentially free fuel.
Today just about any business with the knowledge to build a gas or electric hot water heater has the technological know how to build a cold fusion hot water heater, home furnace, and all manner of devices that might yield useful valuable heat where the cost of the fuel approaches zero. Very high temperature cold fusion/lenr devices are being demonstrated in Russia, Europe, and the USA that run at temperatures in excess of 1000 °C (1800° F). That’s easily hot enough to smelt iron into steel or perhaps power a jet engine certainly to provide hot water for your bath.
Given that cold fusion energy produces no waste emissions save tiny amounts of helium it is perfectly suited as a generic plug and play replacement to fossil carbon fuels that have already spewed a first deadly dose of nearly a trillion tonnes of noxious global warming, ocean acidifying CO2 into the world’s air and oceans. The second additional trillion tonne deadly dose of CO2 for the planet that we’d be surely emitting in coming decades can now be rapidly averted.
The USA has seen 2.3% a year economic growth since 2009, but the rest of world is fairing far worse. There is little chance for growth of oil consumption anytime soon. The OPEC cartel is bereft of its power to set the price of oil and to manipulate the global energy markets after 40 years of wielding such power. The US forecasts an increase this year their of oil production of 9.1 mln bpd by another 300,000 bpd. Other oil-producing nations, including those heavily dependent on oil petrocracies and some with more diversified economies are going crazy about losing their market share to the Americans and are increasing production as much as they can. This continued ‘race to zero’, started last year as the ‘US-Saudi price war’, will effectively take its heavy toll on crude valuation.
In the US, gasoline prices are falling, having retreated by some 40% on average. Now, $2 and change buys a gallon of regular nationwide. Modern vehicles with better fuel economy are now all highly competitive and competitive Asian and European automobiles are going to find it hard to compete in the lucrative US auto market.
With the now certain rapid introduction of simple hand built plug and play cold fusion energy technologies across the full spectrum of established energy systems the new economic reality is playing against oil. The single industry petrocracies who have been engaged in their crazed gaming and profiteering of the global oil markets for the last 10-15 years must prepare for the worst. Their windfall currency and gold reserves wont last forever – and that ill-gotten wealth will rapidly prove to be too little to keep their gold-plated lifestyles going along with providing basic necessities for their people.
To study up on new world of peoples power energy, environment, and ecology (geekology) of cold fusion this blog, atom-ecology, provides a great starting point….
To learn more about similarly revolutionary peoples technology that can become the antidote for the first deadly dose of CO2 read how a penny for our planet can help do that job.
Want to play the energy game like a bankster? Watch this video.