This article deals with the media manipulation and stock market frenzy surrounding the recent “discovery” of a huge oilfield off the coast of Brazil, but it also talks in a very plain manner about the clear indications that oil is running out. The recent spike in food prices is no coincidence, and prices will not be coming down. Ever.
The article is rather long and as you may have noticed, the Machetera blog does not have a print function. She’s working on it. In the meantime you may want to copy and paste the article to a word processing document and print it out from there. It is well worth the trouble and you can put it by your bedside to think about in the middle of the night, since you won’t be getting much sleep after you read it.
The Carioca oilfield “discovery” off the coast of Brazil, in light of media disinformation and stock market speculation
Pedro Prieto – Rebelión
The world press, especially the Western press and specifically the financial press, has jumped all over the headlines of the discovery of a huge oil field in Brazil’s continental shelf.
It’s a concession within a series of blocks or zones earmarked for exploration, over which very little technical data has been offered and which apparently involve the Brazilian company Petrobrás, the Spanish company Repsol-YPF and the British concern, British Gas. The press in each country involved (an involvement created when the head offices of these enormous multinational firms are in a certain country and have close links with political power in their country of residence) has exulted in the discoveries, as something truly impressive. So much so, that stock markets have experienced significant fluctuations.
Naturally, if verified, it would be the greatest discovery in several decades and would skew, to a certain extent, the observed tendency toward a steady but inexorable decline in the volume of the world’s discovered petroleum, while worldwide consumption continues its relentless increase.
Peak Oil and its Impact
This trend was emphasized a decade ago by Colin Campbell and Jean Laherrere, two important oil geologists, who published a well-known article titled “The End of Cheap Oil,” in Scientific American, which touched on the problem of the arrival at the maximum limits of production of a substance as vital as petroleum, and what it would mean for humanity, given that logically and obviously, oil’s geological and physical limitations are finite; its underground formation taking tens of millions of years under geologic pressure and temperature, but its exhaustion by man taking place in barely two hundred years, with the proverbial voracity of an industrial capitalist society in perpetual growth.