The non conformer's Canadian Weblog

August 9, 2014

Oil Politics

obamas-america


The Arctic is believed to hold up to 25 percent of the planet’s untapped oil and gas supplies, and Russia, the U.S., Canada, Denmark and Norway have all been trying to assert jurisdiction over parts of the territory. Russia’s had submitted a bid for vast Arctic territories that could contain large quantities of oil and gas to the United Nations. In 2007, Moscow staked a symbolic claim to the Arctic seabed by dropping a canister containing the Russian flag on the ocean floor from a submarine at the North Pole. The Kremlin also has moved to beef up Russian military forces in the Arctic. The effort has included the restoration of a Soviet-era military base on the New Siberian Islands and other military outposts in the Arctic. Moscow has justified the activity by claiming that the new facilities are vital to protect shipping routes that link Europe to the Pacific Rim. Earlier this year, the military conducted sweeping maneuvers in the Arctic that involved 38,000 servicemen, more than 50 surface ships and submarines and 110 aircraft. As part of the drills, the military demonstrated its capability to quickly beef up its forces on the Arctic
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The reasons alzo the US and Canada they now are telling Ukraine to join NATO and lose Russia.. Russia’s energy and over the next decade Canada’s Alberta Crude and the U.S. production of shale oil and gas rises and so even the United States becomes a major energy exporter. By 2020, according to administration estimates, the United States could be able to export more than 90 billion cubic meters of LNG annually, or about half of the gas Russia now supplies to Europe. There it is.. Russia is the second-largest producer of dry natural gas and third-largest liquid fuels producer in the world.

http://www.eia.gov/countries/cab.cfm?fips=RS

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Putin is a Russian hero,, the best leader they have had in 100 years too.. and the west envies him.. In an interview this month, Marine Le Pen, leader of France’s Front National party, expressed her admiration for Putin. “There is a cold war being waged against him by the European Union at the behest of United States, which is defending its own interests,” she said.  So what makes Putin appealing to Europe’s far right? Many of these movements see Putin as a protector of continental European values. They welcome the Russian leader’s conservative positions on issues like homosexuality, especially as support for gay rights grows in the West. They also share common opponents. Putin is strongly opposed to the European Union — he sees the eastward expansion of the bloc as an encroachment on Russia’s traditional sphere of influence. The majority of Europe’s far right, meanwhile, sees the EU as equally hegemonic. They say it has robbed European member states of their sovereignty, and many are advocating breaking away from it. But it is Putin’s style of leadership which best explains the far right’s attraction to him. Beginning with the years between the two World Wars, the far right has consistently looked for strong leaders to inspire a dedicated mass of followers.   After realizing its failure in Ukraine, the West, led by Obama has set out to destroy the Russian economy by lowering gold, oil prices, and accordingly gas prices as they are the main budget sources of export revenue for Russia and also the main sources of replenishment of Russian gold reserves. Right now the West spends much of its efforts and resources to suppress the prices of gold and oil. There is another interesting element in Putin’s game. It’s Russian uranium. Every sixth light bulb in the USA depends on its supply. Which Russia sells to the US too, for dollars. The cat and mouse game power struggle between the two superpowers of USA and Russia with next the significant oil price drop is punishing the USA and Canada as much as it’s punishing Russia. The US shale sector also has been deeply affected. Thousands upon thousands have already lost their jobs in the USA oil industry due to the low barrel price. When barrel price is low, rigs lie idle which means layoffs due to the cost of production exceeding revenue gained. The world currency for oil is in US dollars which means less of the dollar spent. Less money is also spent on Oil and gas explorations. Even 80% of US shale companies are destined to lose money. Just last week, Goldman Sachs predicted a loss of $ 930 billion in future oil production in Texas and North Dakota. The US has already started to slow production while Russia still is pumping oil and gas without slowdown. Putin is blamed for everything but nobody ever accused Putin of the lack of intelligence. Europe will not be able to survive without energy supply from Russia. Putin is selling Russian oil and gas only for physical gold. Of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold. In the third quarter of last year the purchases by Russia of physical gold were at all-time high record levels. Russia had purchased an incredible amount of gold in the amount of 55 tons. It’s more than all the central banks of all countries of the world combined. In total, the central banks of all countries of the world have purchased 93 tons of the precious metal in the third quarter of 2014. Of the 93 tonnes of gold purchases by central banks around the world during this period, Note the staggering volume of purchases – of 55 tons – belongs to Russia. Russia, is having a regular flow of dollars from the sale of oil and gas, is able to convert them to gold especially with current gold prices, depressed by all means even by the West. China itself will no longer buy United States Treasury bonds for dollars earned from trade with any countries, as they did this before.Thus, China will replace all the dollars that it will receive for its goods not only from the US but from all over the world with Gold too. Russia and China are only interested in gold and only physical metal as a final means of payment. The West can spend as much of its efforts and resources to artificially increase the purchasing power of the dollar, lower oil prices and artificially lower the purchasing power of gold. The problem of the West is that the stocks of physical gold in possession of the West are not unlimited. Therefore, the more the west devalues oil and gold against the US dollar, the faster it loses devaluing Gold from its not infinite reserves. and who gets richer the process? the west or Russia, After realizing its failure in Ukraine, the West, led by Obama has set out to destroy the Russian economy by lowering gold, oil prices, and accordingly gas prices as they are the main budget sources of export revenue for Russia and also the main sources of replenishment of Russian gold reserves. Right now the West spends much of its efforts and resources to suppress the prices of gold and oil. There is another interesting element in Putin’s game. It’s Russian uranium. Every sixth light bulb in the USA depends on its supply. Which Russia sells to the US too, for dollars. The cat and mouse game power struggle between the two superpowers of USA and Russia with next the significant oil price drop is punishing the USA and Canada as much as it’s punishing Russia. The US shale sector also has been deeply affected. Thousands upon thousands have already lost their jobs in the USA oil industry due to the low barrel price. When barrel price is low, rigs lie idle which means layoffs due to the cost of production exceeding revenue gained. The world currency for oil is in US dollars which means less of the dollar spent. Less money is also spent on Oil and gas explorations. Even 80% of US shale companies are destined to lose money. Just last week, Goldman Sachs predicted a loss of $ 930 billion in future oil production in Texas and North Dakota. The US has already started to slow production while Russia still is pumping oil and gas without slowdown. Putin is blamed for everything but nobody ever accused Putin of the lack of intelligence. Europe will not be able to survive without energy supply from Russia. Putin is selling Russian oil and gas only for physical gold. Of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold. In the third quarter of last year the purchases by Russia of physical gold were at all-time high record levels. Russia had purchased an incredible amount of gold in the amount of 55 tons. It’s more than all the central banks of all countries of the world combined. In total, the central banks of all countries of the world have purchased 93 tons of the precious metal in the third quarter of 2014. Of the 93 tonnes of gold purchases by central banks around the world during this period, Note the staggering volume of purchases – of 55 tons – belongs to Russia. Russia, is having a regular flow of dollars from the sale of oil and gas, is able to convert them to gold especially with current gold prices, depressed by all means even by the West. China itself will no longer buy United States Treasury bonds for dollars earned from trade with any countries, as they did this before.Thus, China will replace all the dollars that it will receive for its goods not only from the US but from all over the world with Gold too. Russia and China are only interested in gold and only physical metal as a final means of payment. The West can spend as much of its efforts and resources to artificially increase the purchasing power of the dollar, lower oil prices and artificially lower the purchasing power of gold. The problem of the West is that the stocks of physical gold in possession of the West are not unlimited. Therefore, the more the west devalues oil and gold against the US dollar, the faster it loses devaluing Gold from its not infinite reserves. and who gets richer the process? the west or Russia,
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A surge of light oil from North Dakota and Texas is cutting into the earnings of Canadians who turn heavy oil sands into a lighter crude that fetches more from refiners. Producers in Alberta, home of the country’s greatest reserves, upgraded 20 percent less of the region’s crude in October than four years earlier, according to the province’s energy regulator. Two of five plants under construction were canceled and the province’s upgrading and refining capacity fell in 2013 for the first time in three decades. Companies are now sending record amounts of the heavy stuff on pipelines and trains to refineries in the U.S. Midwest and Gulf Coast, Projects including Suncor Energy Inc. (SU)’s Voyageur joint venture with France’s Total SA (FP) and Value Creation Inc.’s BA Energy Heartland were abandoned. Global oil prices, down by more than 50 percent since June, will make upgrading projects even more challenging because the price difference between heavy and light crude is narrower, U.S. output has risen 70 percent in the past five years as producers used horizontal drilling and hydraulic fracturing to tap into previously inaccessible shale rock layers thousands of feet below the Earth’s surface. Most of the increase has been in light, sweet crude, similar quality Alberta upgraders get from processing heavy, thick oil sands. The rising flows south of Canadian crude are drawing a backlash in Alberta from labor groups, who say jobs, not just oil, are being exported. Alberta’s 4.6 percent unemployment rate, second lowest in Canada after Saskatchewan, may increase after oil’s 55 percent drop in six months prompted some producers to curtail future investment. “Building upgraders in Alberta is seen by the industry as uneconomic,” Dinara Millington, a vice president at the Canadian Energy Research Institute, said in an e-mail Jan. 13. “The U.S. refining market is being flooded with the light crude and they wouldn’t necessarily want our light stuff.”

http://www.businessweek.com/news/2015-01-20/shale-oil-growth-in-u-dot-s-dot-hurts-canadians-as-well-as-opec

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Do also note Ukraine’s, Kiev’s own energy payment debt and is largely of its own making. Its economy was for decades and is hugely inefficient even in the use of energy, lacking either a realistic cost structure or the means to meter usage. Furthermore, its energy industry and regulatory system are corrupt, an inheritance of they many past previous corrupt regimes that continued to follow Soviet-style practices long after the USSR had disappeared. In fact, their past governments had close ties to organized crime even now.. Kiev’s past and present governments have done too little to break the power of the country’s indigenous energy mafia. Kiev needs to clean up its act if it wants to Join the EU. However, it will likely still take a long time even decades more.. in part because many Ukrainians will not want to give up the benefits they receive from the present inefficient and corrupt system. That still won’t solve any of Ukraine’s major problems, nor the use of any of the US military forces.  Kiev’s use of volunteer paramilitaries to stamp out the Russian-backed Donetsk and Luhansk “people’s republics”, proclaimed in eastern Ukraine in March, should send a shiver down Europe’s spine. Recently formed battalions such as Donbas, Dnipro and Azov, with several thousand men under their command, are officially under the control of the interior ministry but their financing is murky, their training inadequate and their ideology often alarming. The Azov men use the neo-Nazi Wolfsangel (Wolf’s Hook) symbol on their banner and members of the battalion are openly white supremacists, or anti-Semites.
http://www.telegraph.co.uk/news/worldnews/europe/ukraine/11025137/Ukraine-crisis-the-neo-Nazi-brigade-fighting-pro-Russian-separatists.html

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Canada the US puppet follows the US lead.

 https://putin1hero.wordpress.com/2015/02/03/the-false-war-against-russia-escaltes/

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https://thenonconformer.wordpress.com/2014/09/30/ukraines-reality/

https://thenonconformer.wordpress.com/2014/06/16/no-direct-proof-but-lies-distortions-insinuations-by-stephen-harper/

https://thenonconformer.wordpress.com/2014/04/19/those-lying-spin-dopctors-think-we-are-all-as-stupid-as-they-are/

http://www.globalresearch.ca/the-demonization-of-russias-president-putin-ny-times-flubs-the-facts-on-ukraine-and-mh17/5395229

http://www.globalresearch.ca/putin-speaks-straighforward-answers-the-west-triggered-the-crisis-in-ukraine-why/5372849

 https://putin1hero.wordpress.com/2015/01/21/why-does-the-new-york-times-lie-about-putin-and-russia/

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