oil production

US Trade Alliances Dropping Like Flies on a Monsanto Garden

Posted on by Helena

As if our global alliances couldn’t get worse – they did.   Saudi’s Bin Salman has announced a cut of crude oil production by 1.66 million barrels per day as of July 1 – the vast majority of which would impact the West. Prioritizing Asian countries, Bin Salman has claimed that the US is his target.   The minions sitting in DC will be required to stumble-foot a response and somehow blame Russia.

The US imports more than 8 million barrels daily. Primary imports originate from Canada, Mexico, and Saudi Arabia.   Nearly 60% of oil imports to the US come from Canada.   But the massive fires raging across the country have put a quash on oil production.   Biden has already drained US reserves which are typically for military emergencies.

And suddenly the trade schism is looking far more provoked.

China is ranked our largest trade import market representing 18%.   Canada and Mexico follow.   Mexico is currently in a trade dispute with the US and Canada and has imposed a 50% tariff on white corn imports.   The cause?   Genetically Modified corn.   Mexico doesn’t want it – and the US claims the dangers of GM corn are ‘not grounded in science’.   Trying to ‘force’ a product Mexico doesn’t want.   The US is Mexico’s largest import partner.

Russia and Mexico have exchanged small trade and are both looking to expand on that pact. While the US pushed for Mexico to honor sanctions with Russia, Mexico refused.

The Power Handlers behind the White House curtain were not pleased with Mexico’s reaction.   They are not pleased with the Saudi’s actions.   South Africa has snubbed them.  And Modi’s expression as Biden spilled, “I have sold a lot of state secrets and a lot of important things…” – told Modi and the world everything they needed to know.   WHY would any country trust America run by swindlers and blackmail bargains?

The top secret documents that the NSA and CIA are desperately searching for have not been found – because Biden already sold them. The amount of blackmail this would create is unfathomable.   And perhaps the need for Biden’s puppet presidency has something to do with that blackmail.

Russia is the distraction. ‘Keep our eyes on Ukraine’ – is a deflection.

Russia, China, and the Middle East are bolstering free trade agreements while the west is killing them.   The UK and German economies are in full blood clot mode.   As essentials become more expensive and more scarce, the governments response is to do less, heat less, air condition less, eat less…   Because it is going to get much worse.   The west and its Comrades have loped along for decades trading, squabbling, sanctioning, and trading again.   But the Biden Handlers want all that wealth to be redistributed from Taxpayers to the Cartel Club as quickly as possible.

There are only two ways the Cartel can cover up the sheer magnitudinal mess they have created:   1)   destroy the economy for a RESET,   or 2)   destroy the west via a nuclear catastrophe/war.    Nuclear is not what The Cartel wants because they need the land and air to be habitable.   Besides all that fake chicken and meat require vast amounts of farmland, farming, fertilizer, Monsanto, and water for those tasty ingredients:   Soy & Tempeh, beans and legumes, pea protein, grains, fruit and vegetable juice, wheat gluten, vegetable oil, flavoring, guar gum, maple fiber, and mushroom extract!  YUM!  Just makes your mouth water!

Of the presidential candidates vying for a run in election 2024, only one has the experience and international integrity to reopen trade and alliances ~ Trump.   Kennedy is seemingly one of the best democrat candidates overall, but he is sorely lacking in the field of international politics.   Leaving him spinning wheels.   A good VP candidate, he would learn well from four years beside Trump. Unfortunately, he has adamantly refused to even consider such an option dulling his ego – I imagine.

The remaining candidates with the exception of an anomaly – Ramaswamy – are simply in it to scrape the bottom of the money barrel when the PACS do what they are not supposed to do – give unspent money to the candidates.   And they blithely walk away, their pockets full.

Ramaswamy may have some explaining to do given it appears he may have fudged his age when scraping the internet of his history.   There are a handful of websites that contain conflicting information –

Internationally, Trump made friends with just about everyone but Xi.   Globally, the Cartel’s insertion of grossly incompetent heads within the White House to ‘manage’ the media was a fatal error.   But the Managers hiding behind the scenes made the various decisions that have provoked international embarrassment and the loss of the US as a global power.

Re-making America Great takes more than what Kennedy is capable of accomplishing.   IF he could see beyond himself to the global impact such a Trump/Kennedy team would have, what it would communicate and convey, and let go of his ego and pride, a Re-make could truly have magical qualities!   Not just economically, but politically and socially.

We could actually prosper as a united country and rid America of the defecating NGO’s – USAID – HRW – etc… that pillage our government and promote War.   I remain hopeful.

OIL – Black Gold looking more like Silver

Posted on by Helena

In the midst of troops deploying to Syria, an escalating war that appears to be headed to engulf the entire Middle East, terrorism, ISIS, and Global Warming…. what has been happening to OIL?

Black gold?

Well, it’s looking more like silver than gold at $40 a barrel and steadily declining.

Normally, when there is war and strife and unrest in the Middle East, oil prices rise in response to a possible shortage. Yet, this time, oil continues to decline. Why is now different?

The are multiple reasons but a few headlines are most noteworthy: OPEC and the Saudi Production.  The Saudis depend on oil for their revenue and the lower oil falls, the more they need to sell to make up for the difference in price.   So, what to do?  They step up production. Sound obvious?

In actuality, the Saudis are hurting, their economy is in a freefall, they operate a 20% budget deficit, their reserves are steadily depleting, and their stock index is generating severe losses. But what are they doing to mitigate?  Not a lot.  They continue to pump more oil, to saturate the market, because it’s all they have. Asking them to stop would be asking them to commit suicide. The petrol industry accounts for 90-95% of ALL their revenue. So if they are already operating at a 20% deficit, how can they possibly absorb ‘more’?

The only way they can pull themselves out of this black spiral is to continue production, raise production and make massive changes in their reliance on oil as their main revenue source, ie Diversify.

But they have another problem – upwards of 90% of their private sector workers are foreign born, only 30-40% of working age Saudis are employed, the government subsidizes the rest. A significant drain on wealth.  But their own citizens don’t have the expertise to manage and run the oil markets, they haven’t the education.   Foreigners spend money, adding to the economy.  But the unemployed suck it back dry.

Not exactly a business model for sustained wealth.

What is their secondary market? Petrochemicals. Petrochemicals are used in the manufacture of plastics and synthetics as well as fertilizers. Monsanto owns it’s own petrochemical plant, Sterling Chemical. And with the land grabs in Africa – fertilizers, GMO’s and petrochemicals will flourish. South Africa is now the 8th largest producer of GMO’s in the world, including maize, soy and cotton.

But with hardline pressure by Monsanto and Syngenta, GMO production has increased dramatically adding Tanzania, Kenya, Uganda, Malawi, Mali, Zimbabwe, Nigeria and Ghana – all on the African Land Grab list.

Saudi Arabia is the third largest investor/holder of land grab in Africa, second is UAE and first is US.  A win-win is the profitability of future agriculture using petrochemical fertilizers…

And while the Paris Climate Summit proposes lowering C02 emissions and toxic gasses, petrochemical pollution and GMO fertilizer pollution rage on.

Petrochemicals are THE MAIN SOURCE of Industrial air pollution. The Industrial Sector is considered the largest source of China’s smog. But the largest producers include: Basf of Germany, DOW of USA, Exxon of USA, Lyondellbasell of Netherlands, INEOS of the UK, Saudi Basic of Saudi Arabia, Formosa of Taiwan, Sumitomo of Japan, and DuPont of USA.  But these represent only the top tiers in an industry that was burgeoning with over 3000 plants worldwide but has also felt the profit bump of falling oil prices.  But while plastic and synthetic production has fallen, fertilizers expand.

And while OPEC countries continue to produce oil, further saturating the markets, other countries have pulled back, their profit margins having long ago been divested. As in the tale of the Tortoise and the Hare, running as fast as you can to the finish line doesn’t necessarily mean you win. But the Saudis have little debt, and can continue to ride the wave plodding like the tortoise, waiting for the fallout from production in other countries to peak before they plug the lid and rapidly push the pricing to potentially extraordinary levels. In the meantime, those countries that closed up shop won’t have the time to retool and will get hit hard.

But the game is not for the faint of heart. The breakeven price of production for Saudi Arabia and Russia is the same at $105, Qatar, Kuwait and UAE is $80, Iran is $130, Libya, Bahrain and Yemen is above $140, while some shale producers in the US report a breakeven as low as $24 in North Dakota.

It is not a game of chess.  Or even Tactics.  Time is the game.  Who can hold out the longest.

And, Time will tell…