[OTE150] On the Edge with Chris Cook

Stacy Summary: Dang, where else can you find such consistently amazing information and thought-provoking ideas!? My primary question to you the viewer regarding this interview with Chris Cook is – do you agree with his analysis regarding oil prices and his prediction that they will collapse in the second half of the year?

More Stacy: On top of the issues raised by Chris Cook, we have the matter of peak oil and the resource wars it inspires. Everywhere you look around the world, you see the evidence – from double digit output declines from the UK, Norway, Mexico and others. Despite the record high prices, none seem able to increase production. Then you have this:

To recap the problem, two of the nine East Coast refineries with a capacity of 363,000 barrels a day (b/d) have recently been closed down. Sunoco which owns a large Philadelphia area refinery (with a capacity of 335,000 b/d) is seeking a buyer and says it will close the refinery in July unless one can be found. These three refineries comprised 50 percent of the East Coast refining capacity as of last summer. Interestingly, the Sunoco’s Philadelphia is the oldest continuously operating refinery in the world having been established in the 1860s. The company says the price of imported crude which costs refiners roughly the going rate in London, plus about $2 a barrel for shipping, simply makes refining along the East Coast unprofitable.

Stacy: It’s interesting to see that the massive gap between the price of Brent (which the global markets use as their price) and WTI has caused the oldest refinery in the world to have to shut down. I must find someone to interview about this as it’s a story we need to understand.

And finally, following on #Kony2012, we now have General Clooney and his hi-tech army ‘defending’ the people of the – coincidentally no doubt – oil-rich Sudan. We obviously want to stop China from accessing African, Middle Eastern or Asian oil reserves at all costs, but I ask you – how long before General George Clooney is spotted running around naked, slapping the pavement outside the Palm restaurant in West Hollywood?

74 comments on “[OTE150] On the Edge with Chris Cook
  1. Steady Eddie says:

    stop worrying and learn to love the bomb

  2. Tritone says:


    I must go with Mr. Cook
    Same Scam different day! get all the sheep to buy at the highest possible price
    and in less than a minute rob them all and say that that’s the risk you take read the fine print thank you for your business please come again thank you! and the sheep have absolutely no
    recourse period thank you for playing! next? can you think of an easier way to rob a mass of people?

  3. Kevin says:

    Mr. Cook brings up a series of salient issues; chief among them is that the banks have changed their business model, with the luxury of bailout bucks. Max, most people’s personal economies are in la toilette. Discretionary driving is down. It was most revealing that with the higher gas prices in Europe, discretionary driving is down as well in Europe. As gas prices increase, people look for substitutes. For example, electric motorcycle sales are on the rise.

    As to whether Mr. Cook is correct about a collapse (practically overnight) of the oil prices, as you stated the premium built in from the Iran threat is a very important point and the global corporations are supranational, not answerable to any countries’ laws. Instead we have a world where too many countries are answerable to these global cartels’s authority. As a result, the U.S. could manufacture a war anywhere on the globe, by the orders of Wall Street, thus causing the price of oil to go even higher.

    I am not ready yet to invest the family treasure in DUG shares, but a small bet on a decline in oil prices is in order.

  4. Mother Earth says:

    In the carbon/credit system the price is dictated by both the availability of carbon and of credit. But both are not under perfect control. The carbon supply reduction has been front ran by a credit squeeze for most of this deflationairy period. This would eventually lead to a lower price simply because there is to few people with money to buy.

    But it seems credit is being created out of the control of those managing the system, and that credit drives up the price, what cook calls ‘reflexivity’.

    Carbon sellers set the price to control the credit in the market, they like a price that keeps consumption on a level that provides the greatest longevity of the business. So ‘high’ in the sense of exacting.

    Credit extenders like low prices because it increases their control over the credit supply and extends their life in the market. They live of thier role in facilitating carbon utilization.

    At the same time governments are starting to interfere by taking control of carbon reserves and this distorts the managed cc system. Eventually it will break down and carbon will be rationed and allocated and the relation with credit will be lost, at which point all credit will become worthless.

    To answer the question : The price is not indicative of availability of oil, only of the relation of the amount of carbon vs the amount of credit. Carbon availability is no longer controlled by producers and sellers alone, but also by governemnts. So only if the credit supply can shrink faster than the allocated carbon for each currency zone will prices be lower in the future. That is if the normal economy holds..

    Cook talks a lot of nonsense, but then he was a regulator so what is one to expect? 😉

  5. Sir David Rottentrousers says:

    I have friends in the oil industry. Two work for big oil service companies and the other two run their own independent engineering firms who have contracts with big oil companies. They all agree, the world is not at “peak oil!”

    Here are the simple facts:
    1. Just like every industry, you have sharks and pilot fish–this is why cheap oil just won’t work currently because the whole industry is bloated to the max with these creatures.

    2. For all these players to stay in business, oil needs to be over $70.00 for extended periods of time.

    3. Don’t blame the supply or the demand, blame the mass in between.

    4. That all said, there’s zero incentive to find “easy” oil until the players involved make the price so high it turns political like we see happening today in the US.

    5. In the overall big picture, offshore drilling has barely even gotten started and Africa is the mother-load.

    6. The only thing that is peaking is the price.

    In summary, sharks & pilot fish, new onshore initiatives, politics, technology, Al Gore, jobs, etc. all wreak havoc on the oil price but ultimately the price will drop because voters need to their cheap oil….

  6. La Curée says:

    Chris is just a useful idiot IMO.
    So the spike and crash coming is speculation rather than the forecast demand destruction caused by rising prices of a finite commodity.
    Just a rerun of 2008.
    You know the history whale oil had identical repeated spikes and demand crashes once the resource reached peak flow rates.

  7. MirrorMirror says:

    @Chris Cook … interesting guy … as was his last interview as well.

    Makes a lot of sense.
    So Morgan Stanley is no longer leasing Oil Tankers for storage then ?

  8. MirrorMirror says:

    The Petro Dollar Discussion Parts 1 & 2



    26 mins. in total

    “Oil shocks” are concocted and strategically planned events.
    Anglo/American Empire in collusion with the Arab Dictatorships.


  9. ChicagoRob says:

    Sir David – Can’t tell if your reply is meant as satire, but “…ultimately the price will drop because voters need their cheap oil,” made me laugh.

  10. Jim says:

    Max never got around to asking the fate of gold if oil would take a big drop.? Anyone have thoughts on this?

  11. F. Beard says:

    It was a pleasure to hear Chris Cook cause he reeks of competence.

  12. Chris says:

    Energy production going offline….
    Supply & Demand getting out of whack…

    Sounds like a perfect scenario for the boys of Enron…

  13. F. Beard says:

    Oh, I think oil prices will fall too cause ultimately the stuff has to be consumed. The closing of refineries, their main customers, has to be bad news for high oil (but not necessarily high gasoline) prices.

    And yeah that “reflexivity” (George Soros) thing is real.

  14. susan says:

    FWIW, I think he’s talking a lot of sh*t, and he looks like a Muppet!

  15. Frans says:

    Well Stacy, my long term view:
    1 BTU of oil = 1 BTU of fiat paper money.

  16. The Doc says:

    Max, thought you would be interested to hear that we received a documented report this morning (including photos) of tungsten filled 1 kilo gold bars discovered in the UK yesterday. This has long been suspected, but has very serious implications now that it is confirmed. So much for Rob Kirby’s allegations being a wacky conspiracy theory!

  17. Scott says:

    Oil is priced in dollars. If oil prices plunge, that means the value of the USD spiked. Is that going to happen? Doubt it, could happen, noone knows…

  18. F. Beard says:

    Wow! Tungsten is a very useful metal!

  19. steveosilver says:

    But were are the refiners in this story.
    To produce diesel oil it produces 2 times the amount of gasoline as a waste product.
    They have to get rid of that some how.
    When demand for diesel is down they still have 2 times the amount of gasoline to get rid of.
    The Hull Effect will change the way energy is managed.
    It is starting to unwind.
    There are clues, but you have to see it from another perspective.
    First the diesel engine will become exstinct then gasoline will be replaced by E85 ethanol refined from sorghum sugar.
    ICE will become the new power plant for sovereign humans.
    back to the lab
    love and gratitude

  20. ronron says:

    is this huckleberry week?

  21. Vonda Bra says:

    “where else can you find such consistently amazing information and thought-provoking ideas!?” ….

    here: http://www.engdahl.oilgeopolitics.net/

    well, talking about oil and a geopolitical and economic greater picture, there is no way to go past regular guest on RT, author, F. William Engdahl, IMHO! …
    he simply makes a lot of sense and offers so much great great info ….
    so in addition to Mr. Cook here, you may want to also check this out:

    http://www.youtube.com/watch?v=d_NzsuyULoI (please listen!)


    wonder why, he has never been invited yet by M+S ?
    he is not a “peak oil guy” though … 😉
    please M+S, have him on !!!! 🙂

  22. ronron says:

    hi Vonda. 🙂

  23. Vonda Bra says:

    Hi dear ronron ! 🙂

  24. Al Kyder says:

    I will watch this vid later but have decided t clear up some of the misinformation,

    1. @ Sir David Rottentrousers
    Total bollocks, We have burned 70 % of the worlds oil. Supplies are in terminal decline.

    2. @ steveosilver What 1950’s text book did that come from? No dude, that statement would only apply to a specific well and refinery.

    Now good information.

    @ Mother Earth sums it up well but does not highlight the relationship between oil futures, oil in the ground, and credit.

    As for the rest, try as I may, no one either reads my stuff, or they dont have the mental ability to understand it.

    There is going to be a huge overlap between old wells going off line and new wells coming online. This will play out over the next five years.

    The drop in Nigerian bonny light imports to the US is very very scary. This could be the end for the USA,

    The WTI index is a fake. The Sweet Light index would have oil at way over 150$ US per barrel today. Some of the super lights would fetch over 200$ per barrel.

    Blend stock is becoming very hard to find. The loss of Libyan oil has been a huge blow to the west. We are going to pay for that big time.

    As for Obama and Camoron releasing the Strategic Petroleum Reserves the SPR is Not What It Used to Be

    We believe the Administration may be operating on outdated assumptions. Given the major changes that have taken place in the US crude balance over the last year, the rate at which additional light, sweet crude can be absorbed into the US market has declined. Growing volumes of “light, tight” crude in the Midcontinent have already been pushing out imported West African grades. The reversal of the Seaway pipeline (which carried West African crude into the Midcontinent) further limits the amount that can be backed out with an SPR release. More importantly, deep capacity cuts to the refining base on the East Coast have reduced the number of refiners able to immediately take light, sweet grades.

    If the past 20-months provide any indication of the rate at which US imports of West African crude will continue to fall, a release of the light, sweet portion of the SPR would have a much more limited impact on the Brent market than it did last year. (This not only assumes an SPR release of a similar magnitude, but also that Asian buying interest would not increase in response.) But if the Administration waits until the end of July to begin taking barrels out of the SPR or if the rate of decline in West African imports accelerates (as we believe it will after the closure of Sunoco’s Philadelphia refinery in June), a release of SPR light, sweet supplies could prove completely ineffective at stemming further gains in Brent prices.

    Even if the SPR’s sour crude stocks were put up for auction, the most likely refiners to take these supplies reside on the Gulf Coast. Considering already constrained pipeline capacity for refined product to flow to the East Coast, Gulf Coast refiners would turn around sour SPR barrels in the form of product exports.

    AS for the QUESTION will oil prices crash ?

    Not at the pump. High gasoline prices are here to stay.

    Obama is out of magic bullets for that one. re;easing the SPR will only mean a few pennies.

  25. Vonda Bra says:

    sorry, I should have given more info on the Engdahl-listenig-experience-link:

    1/19/12 F. William Engdahl: NWO Empire of Illusions – The Dollar Is Only Strong By Default

    -Currency Wars: The Dollar is only strong by default
    -The Fallacy of Peak Oil
    -The Wild Politics of Hungary and Their New Constitution
    -Update on The Strait of Hormuz
    -The Economic Stranglehold on Iran
    -The U.S. Lead Occupation in Iraq:The truth about how life has really changed in the past 10 years
    -Understanding the Science of Oil
    and so much more! 🙂

    a lecture by F. William Engdahl in Moscow – Ocober 2011

  26. ronron says:

    @Vonda. are you hanging around a while?

  27. Vonda Bra says:

    @ ronron: I will!!!! 🙂

  28. ronron says:

    @Vonda. good. we’ll have a little fun. 😉

  29. Vonda Bra says:

    Who is F. William Engdahl?

    http://youtu.be/8ITXzH8NTdk (12.3.2012)

    This week, we bring you our discussion with best-selling author and analyst F. William Engdahl.

    For decades, William has been covering issues on the economy, geopolitics and geoeconomics, oil, genetically modified organisms (GMOs), Pentagon doctrine and his latest book will deal with Peak Oil Theory as well as the origins of Global Warming Theory.

    He kindly spoke to us for 35 minutes all the way from Germany.

    The main points he covered:
    • The Rockefeller Foundation funded the Nazi eugenics program (a discredited pseudo-science).
    *Side note: Germany in some areas actually copied the California model (http://www.youtube.com/watch?feature=player_embedded&v=8CAK0Z9sxpA).
    • Rockefeller Foundation, Duponts, Colgates & Co. developed the eugenics or genetics program, which underlies the GMO program.
    • Nothing good can come of GMOs; they are a poison; potential for global food supply domination.
    • Africa alone can feed the whole world with natural crops (UN experts suggest up to 12 billion people). GMOs will make it impossible to feed 12 billion people.
    • GMO harvest yields are far inferior, create superweeds.
    • Monsanto forces farmers to use “Terminator” seeds. It takes some seven years to revert GM field back to GM-free field.
    • GMOs are a US National Security prerogative. Biotechnology is synonym for genetic modification.
    • Agribusiness created by Rockefellers in 1950’s out of Harvard Business School to control food supply.

    His new book, coming out Spring 2012 is “Myths, Lies & Oil Wars”.

    You can find William Engdahl at:




    He has based his trilogy of books on the quote by Henry Kissinger:

    “Who controls the energy controls nations, who controls the food supply controls the people, who controls money controls the world.”

    A Century of War: Anglo-American Oil Politics and the New World Order


    Seeds of Destruction: The Hidden Agenda of Genetic Manipulation


    Gods of Money: Wall Street & the Death of the American Century


    Full Spectrum Dominance: Totalitarian Democracy in the New World Order



  30. ronron says:

    @Vonda. Tracy i probably collecting sperm. we won,t get caught. 🙂 http://www.youtube.com/watch?v=V0HJTQSghmk

  31. Vonda Bra says:

    @ ronron
    well, who knows ?
    one of my comments is currently awaiting moderation. 🙁

  32. Vonda Bra says:

    @ ronron: oh, wow, ok, its through … 🙂 .. sorry!

  33. Vonda Bra says:

    my bad: I thought it was, but its NOT! 🙁

  34. Vonda Bra says:

    @ ronron: there will probably hardly be any sperm collecting to be caught on
    with any “stones-music” ? … I am afraid to say …. 🙁

  35. ronron says:

    @Vonda. sorry, i will try again. http://www.youtube.com/watch?v=ICdDGZphspA

  36. stacyherbert says:

    @Al Kyder – thanks for all that interesting conversation; do you work in the oil industry?

  37. ronron says:

    hahaha. @Vonda do you like George Jones,s voice. http://www.youtube.com/watch?v=DbbA6x1JIGA&feature=related

  38. Leeroy says:

    “Anyone arguing against peak oil is brain-dead” – Max Keiser

    Peak oil is absolute fact, and is certainly effecting price, but if the markets collapse, so will the price of oil, because the decline in production is over the course of years. The market moves much faster than that. The price can easily collapse 20% in the matter of weaks. Do traders understand the vast effects of oil price on the economy? Yes, they probably do. Is peak oil priced in? LOL no. It’s just too big of a problem to price.

  39. ronron says:

    what a shitty deal.

  40. Al Kyder says:

    @ stacyherbertti

    Yes but I could not go into detail here, one day we should skype I would love to discuss how the Banksta’s use oil futures to create unlimited credit. This is why nationalising a countries oil supplies always leads to war. Its the banksta’s again. Green Washing BP is also something in y CV where we could wax long

    Voi hyvin!

  41. stacyherbert says:

    @Vonda Bra – it doesn’t take a rocket scientist to figure out that one gets held up in moderation if one has 10 links in the comment; it also doesn’t take a rocket scientist to figure out that it’s not really great comment board manners to leave such a long cut and paste post with tons of links and little original commentary, some might call it abusive – no wonder the software identified it as spam

  42. Al Kyder says:

    Oh and on the George Clooney thing.

    You cant isolate an African country like that You cant just focus on Chad, or any other country. The borders are a western concept and only have meaning on a map. On the ground they mean nothing.

    Clooney as much as I empathise with him and what he thinks he is doing, I have to say this is just another westerner who is making things worse. If he was making things better, he would be killed in a light plane crash tomorrow.

    This is part of the Neo-Liberal policy, If the people stay in the villages, they get killed. If the people flee their villages they slowly starve to death.

    This is the beauty of the Neo-Liberal agenda, Millions of people staving to death while waiting to be killed.

  43. ronron says:

    @Vonda. i told you it was the software. @Tracy. take it easy, holy fuck.

  44. Dilberta says:

    I think the powers that be are doing a few things to cover all the bases. They want to start a war and they will need to buy lots of oil to drive all their equipment. So they manipulate the price down just long enough to secure a bunch of it, then let it go up again. If that plan fails, they have that new executive order Obama signed where they can confiscate resources, oil among them, outright. They will get what they need by hook or by crook. Good job Max, in pointing out that the American oil corporations don’t care if they run the economy into the ground. Why would they care when the commodity they are selling is finite and dwindling rapidly? Just like gold and silver, it can only get more valuable as manipulations become impossible to sustain and supply and demand kicks in. Some things are rules of nature and no amount of man-made trickery will stop the inevitable rebalancing from happening.

  45. MEJ says:

    I think it is quite possible that oil prices will crash later this year, but not because of any fundamanetals. USA manipulated the market in the past and no doubt will do so again in the future. Some folks viewed the oil price collapse in 2007/8 as a prelude to the Georgia war later in 2008 – both were tests of Russia’s ability to defend itself. And we have in the past manipulated the oil markets to “punish” China and drive up her cost of production.

    There was an interesting article in the Wall Street Journal on September 3, 2008 that talked about using markets as a weapon (not just oil markets). Not sure if the article is still online, but I found it a couple of years ago here: “The Market Will Punish Putinism” http://online.wsj.com/article/SB122039907604792875.html?mod=googlenews_wsj

  46. MrJones says:

    Great show once again. But Max, would it defy the laws of 32ft/sec squared to run a minute or two over? Specially with such a great discussion going on. Thanks.

  47. AGWistas says:

    Stacy: It’s interesting to see that the massive gap between the price of Brent (which the global markets use as their price) and WTI has caused the oldest refinery in the world to have to shut down. I must find someone to interview about this as it’s a story we need to understand.
    You could have asked Chris Cook. Or you could try F. William Engdahl:
    Why The Huge Spike in Oil Prices? “Peak Oil” or Wall Street Speculation?
    If you are looking for Max’s “Peak Oil” theory affirmation/confirmation, you can try anyone at CNN; same should do for his AGW and assorted spiritual turmoils.

  48. Sir David Rottentrousers says:

    @Al Kyder

    Sorry, but the facts are not from me, they come from oil professionals.

    Find a map that shows every offshore oil rig in the world and you’ll see that the industry has barely even gotten started. Moreover, there are known sources in various countries already that haven’t even begun to come online for various reasons.

    The big picture here is that there is a battle going on between onshore and offshore. For the past few years offshore has been winning–hence the steep increases–but onshore production has been slowly creeping into the news again.


    Don’t blink are you are going to miss the drop in price coming in a couple years….

  49. AGWistas says:

    May be this could be the answer to your question:
    The Real Cause of Rising Prices at the Gas Pump by Prof Robert Reich

  50. kdt says:

    been thinking about buying a horse and buggy ……………….. dose this meen that the buggy wip manufactures were corect , this whole car craze is just a fad ? caus aperently ill be needing there services.
    i payed 4.32 a gallon U.S. this after noon …..it gave me buyers remorse , that is not right and that is lower that last week
    the pink slime econimy has reached its peak imo , and im not shure that any one is reading the accual effects of peak oil corectly. i meen has this fall in usage been taken in to account properly? all the talk related to peak oil seems to imply that it is a suply driven shortage wich will get tighter and tighter till as mother earth sugested it is totaly controled and rationed. but is not reality going the other way? in that a fall in USAGE seems to be the net efect as the cost of consuming dead dinos. goes up and up, wich is not to say i disagree with AL kider about pump price …. but with the money printing situation….. what dose that meen exactly ?? is it the dilution of the value of money or a rise in price?
    have we fully thought thru what max keeps saying on price discovery ? do we know any thing at all , with this much manufactured acctivity going on , about the reality of this mess? i seriously doubt it what i can tell you max is that this ponzi scheem has contacted the REAL world and is being destablized by that interaction how it fails will not follow any script we think up!! entropy is organic and running amuck in the spaces between REALITY and and our rationalization of reality .

  51. kdt says:

    @stacy im in moderation too with no links at all ???

  52. kdt says:

    @ stacy it just ran a little long is all , not even all that long fo me lol

  53. Uptick says:

    LOL@ rocket scientist… The word” moderation” must touch a nerve maybe it was said a lot in rehab, or somthing
    “You cant dink in moderation”

  54. Mattdog says:

    @Al Kyda, I probably should have said something earlier… Always have enjoyed reading your posts, usually glued to the great understanding of how “light sweet crude”
    influences the daily grind of the worlds’ superpowers. Even if I don’t have the mental capacity to understand it all. Anyway, Just want to assure you that your thoughts and input are very insightful and great reading, and not in vain.

  55. Uptick says:

    @@Al Kyda
    I second that with Mattdog
    very well said !

  56. ronron says:

    @Uptic. your a fucking goof. Vonda has more class than you will ever have.

  57. kdt says:

    @steveosilver………………………………………………………………………………………………………………………………………………… First the diesel engine will become exstinct then …………………
    from what iv read deisl engines were invented for german farmers to run on veggie oil and it acculy took the oil industry alot of time and money to come up with a petrocemical replacement that worked (with out ruining the engine) and would would alow them to crack in to that market, so im not shure why deisle would become obsolete rather than simply going back to its origianl form and usage . i see this as more likely especialy as i know some one who has already converted to veggie diesel for there road vehicle . more likley (once the dust settles after the crash) will be diese/electric for trucking and battery/electric for passenger vehicles for what little shiping is acculy required for a working non “supply chain”(bean counter time and motion study bull shit) based econimy!
    it will of corse be totaly “not profitable” but look what “profitability” has done to humanity…………..yuk i prefer the eficency of individual effort and responsibility

  58. Al Kyder says:

    @ mattdog and uptick thanks.

    @ Sir David Rottentrousers

    Yes I have many maps of where rigs are. I can tell you the name of any rig anywhere in the world what its drill depth s etc etc

    What you need to look at is the rig utilisation data.

    But if you are so confidernt that there is all this oil out there, why not put your money where your mouth is, I can get you a Jackup IC < 250' WD for 7,000$ US per day or a Jackup MC < 200' WD for under 40k per day.

    If you think you know where there is something big, form a consortium they will come running if you have the right kind of oil.

    I can get you a rig like the one BP had Deep Water Horizon, for a paltry 400k per day,

    20% of the feet is sitting around doing nothing, so where is this great boom in discoveries.

    Do the math @ Sir David Rottentrousers

    I have reported every major oil discovery in the last six months here. Not even 20 billion barrels worth, we use 80 million barrels a day and the current producing well are mostly in steep decline.

    Oil is rare, hard to find, and mostly confined to the Mid East.

  59. Uptick says:

    lol and you are internet tough guy >> joke stool pigeon

  60. Uptick says:

    relax ronron i will call you wAAnnambulance whining bitch

  61. Uptick says:

    I knew you would lash out at me for laughing at stacys comment
    its funny ..its that much more funny that you name call on the net .. but what the heck why not I cant sleep away so i might as well join in your lameness .. besides your harmless anyway ..

  62. Al Kyder says:

    @ Mattdog

    I should have said something earlier too, ” Even if I don’t have the mental capacity to understand it all. ” This would include myself ofcourse. What the fark is going on in Namibia??

    The other piece of news that made me think, Thanks @mattdog is that Exxon Iraq deal. The Iraqi’s said they would talk about it. So what will Turkey do??
    This is something Youri Carma should dig into.
    What is the news regarding the PKK and Terror in Turkey.
    I re,e,ber Condalezza Rice flying in to Kirkuk to put herself in the firing line between the Turks and the kurds.
    The Turks Turkmen have a valid claim to Kirkuk.
    Maybe they will punish Israel for it, “again”

  63. Danny Cunnington says:

    Well obviously the refined products are backing up because the general state of the economy doesn’t support pricing this high. This means refiners are being squeezed and some of them are closing or going bust.

    The rationale for high oil prices are all based on western interference as in, Threatening Iran for bogus reasons, partitioning Sudan causing the supply to stop and interfering in Nigeria to cause an oil strike. All of these things are done by the western powers so clearly they want the economies or the west taken into depression which is what always happens when the energy prices are too high for industrial output and the real economy.

    Of course the price will correct down in any case but it’s anyone’s guess on the timing. The threats against Iran have been on-going since 2004. The claim that Iran is secretly diverting nuclear fuel to make a bomb started in 1982 predicting a bomb in a few years with new times replacing the old deadlines continuously. In other words a totally baseless assertion that 30 years old, has been shown to be wrong over and over and is characterised by a complete lack of any credible evidence.

  64. cooil says:

    The Bergius Process is a method of production of liquid hydrocarbons for use as synthetic fuel by hydrogenation of high-volatile bituminous coal at high temperature and pressure. It was first developed by Friedrich Bergius in 1913, in 1931 Bergius was awarded the Nobel Prize in Chemistry for his development of high pressure chemistry. During WWII the United States conducted secret research in converting coal to gasoline at a facility in Louisiana, Missouri. Located along the Mississippi river, this plant was producing gasoline in commercial quantities by 1948. The Louisiana process method produced automobile gasoline at a price slightly higher than, but comparable to, petroleum based gasoline but of a higher quality. The facility was shut down in 1953 by the Eisenhower administration after intense lobbying by the oil industry.

  65. Al Kyder says:

    So I finally watched that. Brilliant show, Cant thick of much to say, Chris and max covered that topic so well. I can only think that Petrobras did not go ahead with that other offering on Wallstreet. They took the 218 billion and ran, then had that lucky find. They scored big time. So I guess that comes out of mom and pops pension.

    I will look forward to the rest of that interview some time in the future. Max you should put it to Chris Cook, “What if someone traded Oil for Gold”
    @ Stacy: It’s interesting to see that the massive gap between the price of Brent (which the global markets use as their price) and WTI has caused the oldest refinery in the world to have to shut down. I must find someone to interview about this as it’s a story we need to understand.

    The pricing mechanism was destroyed about 8 to 10 years ago as Chris says. Its all about getting the blend right for the refinery. You can make huge money having a high quality blend stock. Brent is actually a low grade oil. Not really that good for high octane gasoline.

    America has an infrastructure problem. This is what Peak is all about. The US does not have the pipeline / rail capacity to deal with this shift.

    Also lets not forget that the ageing population is driving less. This is a major factor in the drop in demand.

  66. Liz S says:

    Great show. I love when Max has people on with whom he disagrees. His ability to question and listen to someone who has a different view is one of the things that sets him apart as a journalist. I listened three times to try and understand Cook’s various points.

    Anyway this is the question I have:
    It seems to me that one of the Obama plans is to have the US convert to natural gas. Bloomberg Radio pushes fracking and natural gas like it was the cure for death. They have many guests who claim that the US can become a natural gas exporting country, that the US is the Saudi Arabia of natural gas, etc. They speak longingly of cars that will run on clean natural gas.

    the US destabilizes the Middle East, blows up pipelines in Syria, gets countries to stop buying oil from Iran. As oil supply diminishes and price spikes for both real and geopolitical reasons, what will the EU and Japan run on instead? Maybe American natural gas? This of course gives Max another reason why the US has an interest in keeping oil prices high. And once demand for natural gas increases, maybe they can raise those prices as well?

  67. Rorschach's journal says:

    Still pushing peak oil?
    But then again youve got oligarchs to keep happy dontcha?

  68. Sir David Rottentrousers says:

    @Al Kyder

    You should no better.

    The oil price is peaking. Things are south from here. I trust my sources because they aren’t on the “inter-nets” commenting they are living the dream every single day….


  69. Hardcore Uproar says:

    The thing I don´t understand, if the consumption of oil is failing in the U.S. & West how comes the likes of Ford & GM are posting buoyant sales?

  70. SilverPorno says:

    The oil companies stand to gain little if the prices rise? He said something like that, didn’t he?

    Check out “Gashole”.


    Start at about 24mins in, to get to the point…

  71. Al Kyder says:

    @ Sir David Rottentrousers

    Now you are confusing the price of Crude with the price at the pump. Are we talking about the downstream side now?

    “I trust my sources because they aren’t on the “inter-nets” commenting they are living the dream every single day….”

    Thats funny considering the news vacuum I live in. I still have good sources in the exploration side, and some contacts at two of the majors.

    Peak oil is here, it is effecting the biggest consumer first, The USA, and then on from there. Refineries are closing and becoming storage facilities, and not many new pipelines are being built, Brazil is the only bright spot.

    So you do get this I hope @ Sir David Rottentrousers the logistical limits have been hit. Oil is in terminal decline, so why bother investing in new infrastructure.

    The world uses about 80m bpd and that is going to have to come down to about 50mbpd and that 50mbpd will have to be distributed to a wider variety of peoples.

    Statoil said that the Oseberg partners are in the process of concluding drilling operations in the exploration well 30/6-28S.

    The well drilled by the rig COSLPioneer (mid-water semisub) proved an oil column of around 40 feet (12 meters) in the Statfjord Formation. The estimated volume of the discovery is in the range of 12-18 million barrels of recoverable oil equivalents.

    WOW that enough to run the world for a whole two hours.

  72. steveosilver says:

    Ak, i am not an oil guy so i can only report what has been told to me about the 2x ratio, if that is not the case, i will send it along for clarification.

    Once i showed you that link about the guy that could start fires without touching anything, buy using his chi or whatever, I think you have know about similar things.

    I have always said oil is water and everything is water.

    Apply a frequency or a charge and water becomes oil, ask some oil workers if they have every seen lighting strike and oil flows, kind of like the Jed and the hillbillies, lol.

    Yes you are right diesel was once created for natural oils and was corrupted and has been ever since.

    Why was lye outlawed for sale, because they can use it to make bio diesel, can not have that.

    Where is the story about people being fined for not using petrol or taxed for not using diesel, its all about control.

    Now they have lost control, and what about E85?

    But corn and that whole is a side step to make the foot print bigger, lol.
    What will they do with HFC syrup when its is shown to cause cancer and alot of other bad things.

    Sorghum is a genus of numerous species of grasses, one of which is raised for grain and many of which are used as fodder plants either cultivated or as part of pasture.

    Mr. Hull has enabled his internal combustion engines to produce 50% more torque and use 85% less fuel, E85 than is required.

    And this is with a minimal modifications to a standard motor.

    Low RPM equals massive torque, by what i can describe as hydro fracking the fuel, to where it runs off of vapors and then engines run cold, an implosion, instead of an explosion.

    When the Hull effect is added to diesel engines, the conditions become unsafe, because of the induction ignition system, or lack there of.

    All fuel injection methods become obsolete, because the liquid is not required to run the engines, think the noble gasess or the Papp engine of sorts.

    Patent number US2010/0258094 A1 Oct 4 2010

    Application # 12/588,094

    IES LLC Purchased the rights and is trying to be suppressed by tptb, except inventor owns the media rights, they broke the contract by trying to sabotage the testing of the proof of concept.

    3 engines and vehicles exist as proof of concepts.

    Look for the Hull Effect, no tin foil hat needed, lol.

    love and gratitude

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