" />
Building a world of
resilient communities.

MAIN LIST

 

Peak oil notes - Feb 18

Prices and production
Oil prices have been volatile this week, opening at $75 on Monday, falling below $73 on Tuesday and closing at $77.33 on Wednesday. The prospects for a Greek bail-out, movement of the Euro, and hopes for a US economic recovery were major factors behind the activity. On Tuesday, oil prices gained nearly 4 percent on a falling dollar and a stock market rally. While the weekly stocks report has been delayed until Thursday because of the President’s day holiday, the API reported that US crude inventories fell by 63,000 barrels; gasoline and distillate inventories increased by nearly 3 million barrels, suggesting that demand remains weak.

MasterCard reported that US gasoline demand fell to the lowest level in since the 2008 Gulf hurricanes last week; however, record snowstorms across the much of the US kept drivers off the roads.

Iran
The US stepped up the pressure on Iran this week with Secretary of State Clinton, National Security Advisor Jones and JCS Chairman Admiral Mullins all making public statements concerning the situation. Clinton said evidence is accumulating that Iran intends to produce nuclear weapons and is headed towards a Revolutionary Guard military dictatorship, while Jones and Mullins talked of imposing tough sanctions on Iran. According to the Israeli press, Mullins told reporters in Israel that a military strike option is still on the table. The New York Times ran a story saying that after a year of diplomatic efforts, the Obama administration was nearing the end of its patience with Tehran.

Even the Saudis chimed in on the debate by noting publically that the threat posed by Tehran demanded “a more immediate solution” than sanctions – presumably meaning some sort of blockade or military action. The US is said to be seeking Saudi help in getting Beijing to agree to sanctions, presumably by guaranteeing that the Saudis would make up for any loss of Iranian oil shipments that might result from the sanctions.

On Tuesday, the government-controlled Chinese press ran a story noting that Moscow is saying that Tehran should start improving its cooperation with the IAEA; if they don’t, sanctions against Iran cannot be ruled out. Some would see this as yet another warning that Beijing may be reevaluating its policy and may be coming to the view that its acquiescence to harsher sanctions may be better than letting Tehran continue on its present course of increasing confrontation.

In the meantime, President Ahmadinejad continues to say that he still is ready to swap his low-grade uranium for 20 percent enriched fuel even from the US, but threatened that any country attempting to impose harsher sanctions on Tehran would regret its actions. In the past Tehran has said it will reduce oil exports, thereby driving up oil prices if sanctions are imposed.

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Find out more about Community Resilience. See our COMMUNITIES page
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.


The Great Burning   

What will we do when the Great Burning comes to an end?

The Renewable Revolution

Don’t hold your breath, but future historians may look back on 2015 as …

Peak Oil Notes - Apr 16

Oil prices surged this week.

Putting the Real Story of Energy and the Economy Together

 What is the real story of energy and the economy? We hear two …

Fracking Increases Radon Gas Hazard, US Study Finds

Another major U.S. health study has found that the hydraulic fracking of …

How Conservative Texas Took The Lead in U.S. Wind Power

Innovative government policies have helped propel Texas into the forefront …

The Collapse phenomenon

Michael Ruppert's last book, first starring film role and ascendancy to the …