Relevance of Oil Supply
by James Jaeger

Not only is oil geopolitically strategic, but the DOLLAR IS NOW ESSENTIALLY BACKED BY OIL -- whereas it used to be backed by GOLD. Given the validity of various studies, such as the one reported in an article entitled War and 'Peak Oil' -- Confessions of an ex Peak Oil Believer by William Engdahl at, it seems that indeed abiotic oil may very well be a reality. If it is, then the source of oil creation is a deeper mystery than it has ever been (no pun intended). I would say that oil is probably both abiotic and biotic -- but you know, it really doesn't matter HOW oil is created -- all that really matters is how MUCH of the stuff is out there.

Since oil is a strategic resource, it would seem to serve the Oil Establishment best to the degree they make the world SUPPLY nebulous. After all, the only way one can manipulate the DEMAND of a commodity is to manipulate the SUPPLY. And this only works with commodities, because, by definition, commodities are uniform hence quantity-sensitive rather than quality-sensitive. Other products can have their DEMAND manipulated by QUALitative means rather than just QUANtitative means. Thus commodities mostly vary in quantity and not quality, even though there are different qualities of oil, basically oil is oil.

So, the geopolitical strategy of the Oil Cartels, one would assume, would be to keep the SUPPLY of oil ELASTIC (just as the Federal Reserve System keeps the supply of money ELASTIC) and this can most easily be done through secrecy. Thus this the REASON the oil supply must be as elastic as the dollar supply is elastic. As the US prints up more Federal Reserve Notes to service the already existing debt and long-term liabilities, the only defense against the price-DECREASE of oil, is to curtail the SUPPLY of oil and make it more indispensable, real or imagined. And often this can only be done with favorable PR (public relations) if justifiable "reasons" for the lower supply are disseminated. Such as:

A. We are hitting peak oil;
B. The hurricane wiped our refineries out;
C. There is a war in the area;
D. Tyrants are aggressing Kuwait;
E. Terrorists threaten security;
F. The stock market is up/down;
G. Other energy technologies aren't viable;
H. Fusion is still 50 years off.

The idea that ...

A. Oil is abiotic;
B. Oil is renewable or infinite;
C. New wells have been discovered;
D. Drilling tech is improving;
E. Wars are ending;
F. Hurricanes are under control;
G. Alternative fuels are possible;
H. The dollar is rising.

... do not help the Oil Establishment keep DEMAND up and SUPPLY down.

So, I can see that given the money the Oil Establishment has at its disposal, any reality is possible.

Control of scientists: possible.
Control of the auto industries: possible.
Control of the World media: possible.
Control of the US government: possible.

Control of thinking people: impossible.

Given the above considerations -- that the SUPPLY of oil will probably never be known -- it's folly to dwell on it.

The only winning strategy is to differentiate the merits of alternative energy liquids -- as Zubrin has done in ENERGY VICTORY -- and push for them. (See A Remedy for the Oil Problem at

Also stamp out and rebut false information put out by the media such as the piece CNN ran on ETHANOL on or about 20 February 2008.

Here are the outpoints to the CNN piece :

1. They did not mention METHANOL.

2. They failed to mention that the solution must only replace SAUDI oil production, NOT world production.

3. They over emphasized the CO2 methanol will produce in its manufacture while failing to mention that this CO2 will be ABSORBED by the crops that ethanol is made from.

4. They over emphasized the mileage deficiency of ethanol while failing to mention the cost offset today, and increasing cost off-sets in the future as gasoline rises in price.

5. They failed to mention any of the benefits to third world economies.

6. They represented the government's subsidies as being significant when in fact, a 10 billion subsidy to get an industry started is a VERY small fraction of a $2.8 trillion gov budget.

CNN Is guilty of a number of other out points, but you get the idea.

The bottom line on abiotic oil is: it doesn't matter what the supply is because we will probably never know it and this secrecy will serve to keep the supply as elastic as the money the oil backed fiat money the Fed generates.(1) We should therefore concentrate on developing ethanol/methanol/gasoline flex-fuel cars (per Zubrin's plan in ENERGY VICTORY) and we should force the government to allocate at least 10% of the military budget to consummating FUSION energy and get this done by 2015. If SOLAR can become more viable because of nanotech, then nanotech should be superfunded for at least this reason. I would feel most comfortable in a world where one could choose to operate a flex-fuel car OR an electric car whether such electric car ran off electricity (generated from fusion or nano-assisted solar panels) or whether such flex-fuel car operated off of ethanol or methanol. I would opt to segue away from coal, oil and natural gas, as these energy sources increase CO2, hence global warming. Also they are currently useful for the manufacture of many various strategic products so they should not be burned up. I would emphasize that both the HYDROGEN ECONOMY and ECONOMIZING are both fraudulent strategies being promulgated by the Oil Establishment (and its apologists) in order to buy them time and increase their odds of dominating the Next Energy Establishment.(2)

(1) See documentary film entitled FIAT EMPIRE for more information on the Federal Reserve System, such at

(2) See Robert Zubrin's book, ENERGY VICTORY (available at and, for reasons why the HYDROGEN ECONOMY is a fraud and why ECONOMIZING is a losing strategy. Also see for other related articles on energy politics.

24 February 2008

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