A project gone awry?
With oil-price now hovering in the $45-50 price-band, being back where it was less than 2 years ago, we can ask
ourselves: what was this all about?
Starting with spring 2007 the price was talked up to unprecedented levels within a bit more than a year.
Some governments and many pundits were speaking about shortage, peak oil, possible conflicts and the like and setting
projections for soon-to-be-reached $ 200 (or more) per barrel, making it possible for speculators, often from the
same house, to rake in billions of dollars.
This triggered ever more speculators in entering the market, further driving up the price and allowing for further
billions of dollar of profits.
It also allowed mega-profits for the producer countries, which on the one hand were able to improve their economies and on the other hand invested large amounts in projects that would cater for the supply of the future, as depletion and peak oil became more of a reality.
But then the oil price plummeted. And whilst short selling had been determined as one of the major factors (or causer?) of the rapidly expanding and worsening credit crisis, speculators were able, and allowed, to make billions, again. This time the effects for the producer countries were less benign.
We are now in the beginning of a global economic crisis, of which the scope still needs to be realised, but which may be much worse than what most of us will expect. In a growing chain-reaction we see almost all economies of the world now affected, multi-million people losing jobs, savings, pensions, homes and often that for which they worked for decades.
Many (oil-) projects have been halted, are in trouble or questioned, depending on how long the current low oil-price may be maintained, and thereby putting in jeopardy the security of supply of the future, as depletion has not stopped and demand is down but nevertheless still around the 85 mm bpd.
So what was it all about?
Was this the biggest robbery in the history of mankind, as some commentators have suggested?
Was it economic geo-strategic warfare, as others have suggested, re-organising the planet?
Was it just greed-gone-wild?
Or a combination of the three, in which some groupings that control “the markets” were combining with
ideological factions to make sure that everyone still remembers “who is in charge”, and that with the
raked in billions of dollars strategic economies and assets could be snapped up at bargain prices?
Whatever it may have been, and whatever still will come, it has done, and still will do, untold damage to the Rest of the World.
But the good thing is that we are in new times, in which hidden things seem to drift to the surface and become more open and recognised and hidden intentions can be seen more clearly.
The effects of the recent developments, next to economic hardship for billions of people, will also be the
counter-balancing of what has caused the current situation, especially in cleaning up the financial sector, and
reigning in its might.
It has also done much damage to the USA and to its position in the world, as most see the cause of the evil squarely
deeply rooted there.
Could it be that the Project for a New American Century, of which we invite you to read the founding members-list, has gone a bit awry and has caused a Proposition for a Neocon American Catastrophy?
We may know in due time.
Alexander
Responses are welcome at Alexander@gas-oil-power.com
