Sorcha Faal’s Books Available Now In English!
Immediate Action Alert: Bird
Flu Pandemic: Something Wicked This Way Comes! "Society
just can't accept the idea that 50 percent of the population could die. And I
think we have to face that possibility. I'm sorry if I'm making people a little
frightened, but I feel it's my role." Dr. Robert G. Webster, Rosemary
Thomas Chair at St. Jude Children's
Picking up the Pieces: Practical Guide for Surviving Economic
Crashes, Internal Unrest and Military Suppression
By: Sorcha Faal
“In the span of less than 3 months gasoline prices will rise 500%. The prices of both food and shelter rise over
300%. (Continued)
Partisans Handbook: Essential Survival Guide For
Resisting Foreign Military Occupation, Escape And Evasion Techniques, Surviving
Interrogation, Facing Execution, Wilderness Survival (Continued)
The Children of Winter: Apocalyptic Message of Hope By: Sorcha Faal "Not told by Sorcha
herself alone, but by the Children of Winter themselves, who at 6 years of age
the weather had no effect upon them as they walked naked in the snows of
winter. Who at 10 years of age could
walk thorough boiling water with no burns or (Continued)
By: Sorcha Faal, and as reported to her Russian Subscribers
The world took a decidedly vicious turn for the worst this past week as Sweden joined with other of the World’s Central Bankers in dumping US Dollars and hastening the collapse of the American Military Warlords, and as we can read as reported by Britain’s Telegraph News Service in their article titled "Dollar falls after Sweden echoes global switch to euros", and which says:
Not understood by the American peoples, and who are facing the unprecedented rise of oil, gold, silver, cooper…and the thousands of associated products dependent upon these commodities, are that these rises have more to do with their Dollars collapse than the actual world prices of these commodities themselves.
Likewise being kept from the American peoples are that the recent rises in their Stock Markets have been fueled only by the their average citizens through their pension scheme called 401-K’s, as their largest institutional investors and trans-national corporations, along with their nations elite citizens, have long abandoned the American markets for those of Europe, Asia and Brazil leaving these American citizens to bear the brunt of this collapse.
As a nation of 300 million people the American people consume 20 Million Barrels of oil a day compared to China’s use of 6.5 Million Barrels a day for a population of 1.3 billion, yet one of the United States most complete reports, "Life After the Oil Crash: "Deal With Reality or Reality Will Deal With You", which is required reading for every Russian school child, remains virtually unknown to the people of the nation to be most effected by these events, and which is worth remembering now:
"Civilization as we know it is coming to an end soon. This is not the
wacky proclamation of a doomsday cult, apocalypse bible prophecy sect, or
conspiracy theory society. Rather, it is the scientific conclusion of the best
paid, most widely-respected geologists, physicists, and investment bankers in
the world. These are rational, professional, conservative individuals who are
absolutely terrified by a phenomenon known as global "Peak Oil."
Dick Cheney made the following statement in late 1999:
"By some estimates, there will be
an average of two-percent annual growth in global oil demand over the years
ahead, along with, conservatively, a three-percent natural decline in
production from existing reserves."
That means by 2010 we will need on the order of an additional 50 million
barrels a day.
To put Cheney’s statement in perspective, remember that the oil producing
nations of the world are currently pumping at full capacity but are struggling
to produce much more than 84 million barrels per day. Cheney’s statement was a
tacit admission of the severity and imminence of Peak Oil as the possibility of
the world raising its production by such a huge amount is borderline
ridiculous.
A report commissioned by Cheney and released in April 2001 was no less
disturbing:
"The most significant difference
between now and a decade ago is the extraordinarily rapid erosion of spare
capacities at critical segments of energy chains. Today, shortfalls appear to
be endemic. Among the most extraordinary of these losses of spare capacity is
in the oil arena."
Not surprisingly, George W. Bush has echoed Dick Cheney’s sentiments. In May 2001, Bush stated, "What people need to hear loud and
clear is that we’re running out of energy in
A handful of people believe oil is actually a renewable resource continually
produced by an "abiotic" process deep in
the Earth. As emotionally appealing as this theory may be, it ignores most
common sense and all scientific fact. While many of the people who believe in
this theory consider themselves "mavericks,"respected
geologists consider them crackpots.
Moreover, the oil companies don't give this theory the slightest bit of
credence even though they are more motivated than anybody to find an unlimited
source of oil as each company's shareholder value is based largely on how much
oil it holds in reserve. Any oil company who wants to make a ridiculous amount
of money (which means all of them) could simply find this unlimited source of
oil but refuse to bring it to the market. Their stock value would skyrocket as
a result of the huge find while they could simultaneously maintain artificial
scarcity by not bringing it to the market.
Even if the maverick/crackpot theories of "unlimited oil" are
true, they aren't doing us much good out here in the real world as production
is declining in pretty much every nation outside the
It certainly isn't doing us any good here in the
Furthermore, if oil fields really do refill themselves, why aren't advocates
of the abiotic oil theory hiring themselves out to
independent oil exploration firms? They could becoming fabulously wealthy by
helping these firms locate and profit from the magically refilling fields.
Perhaps the reason abiotic-oil advocates aren't
hiring themselves out to oil companies is because the abiotic-oil
theory is little more than clever oil company propaganda. Journalist Paula Hay
explains:
"If millions of people got the
picture that Peak Oil is imminent, they would surely begin to take steps to
protect themselves and their families—to powerdown—and
decline would be slowed as a result of all those peoples’ aggregate actions. It
would be a classic market response to new information. Big Oil cannot allow
this to happen if it intends to keep its profits sky-high. If people believe
that oil is abundant forever; that they are being screwed by Big Oil; and that
the government will step in any moment to save them, they have no incentive to powerdown.
Abiotic oil propaganda, coupled with
finger-pointing at the oil industry, is a perfect ruse to ensure people don’t
start powering down. Peak Oil is not the oil industry’s propaganda. Abiotic oil
is the oil industry’s propaganda."
Global oil discovery peaked in 1962 and has declined to virtually nothing in
the past few years. We now consume 6 barrels of oil for every barrel we find.
According to an October 2004 New York Times article entitled "Top Oil
Groups Fail to Recoup Exploration Costs:"
". . . the
top-10 oil groups spent about $8bn combined on exploration last year, but this
only led to commercial discoveries with a net present value of slightly less
than $4bn. The previous two years show similar, though less dramatic,
shortfalls."
In other words, significant new oil discoveries are so scarce that looking
for them is a monetary loser. Consequently, many major oil companies now find
themselves unable to replace their rapidly depleting reserves.
The good news is that we have a massive amount of untapped "non
conventional" oil located in the oil sands up in
The bad news is that, unlike conventional sources of oil, oil derived from
these oil sands is extremely financially and energetically intensive to
extract. Whereas conventional oil has enjoyed a rate of "energy return on
energy invested" (EROEI) of about 30 to 1, the oil sands rate of return
hovers around 1.5 to 1.
This means that we would have to expend 20 times as much
energy to generate the same amount of oil from the oil sands as we do
from conventional sources of oil.
Where to find such a huge amount of capital is largely a moot point because,
even with massive improvements in extraction technology, the oil sands in
More optimistic reports anticipate 4 million barrels per day of oil coming
from the oil sands by 2020. Even if the optimists are correct, 4 million
barrels per day much oil when you consider our colossal and ever-growing demand
in conjunction with the small amount of time we have left before the global
peak:
1. We currently need 83.5 million barrels per day.
2. We are projected to need 120 million barrels per day by 2020.
Some people believe that no new refineries have been built due to the
efforts of environmentalists. This belief is silly when one considers how much
money and political influence the oil industry has compared to the
environmental movement. You really think Ronald Reagan and George H. Bush were
going to let a bunch of pesky environmentalists get in the way of oil
refineries being built if the oil companies had wanted to build them?
The real reason no new refineries have been built for almost 30 years is
simple: any oil company that wants to stay profitable isn't going to invest in
new refineries when they know there is going to be less and less oil to refine.
The huge reserves of oil shale in the American west suffer from similar
problems. While Shell Oil has an experimental oil shale program, even Steve Mut - the CEO of their Unconventional Resources Unit - has
sounded less than optimistic when questioned about the ability of oil shale to
soften the coming crash. According to journalist Stuart Staniford's
coverage of a recent conference on Peak Oil:
"In response to questions, Steve
guesstimated that oil shale production would still be pretty negligible by
2015, but might, if things go really well, get to 5mbpd by 2030."
Disinterested observers are even less optimistic about oil shale. Geologist
Dr. Walter Youngquist points out:
"The average citizen . . . is led
to believe that the
This is not true at all. All attempts
to get this "oil" out of shale have failed economically. Furthermore,
the "oil" (and, it is not oil as is crude oil, but this is not
stated) may be recoverable but the net energy recovered may not equal the
energy used to recover it. If oil is "recovered"
but at a net energy loss, the operation is a failure. This means any
attempt to replace conventional oil with oil shale will actually make our
situation worse as the project will consume more energy than it will produce,
regardless of how high the price goes."
Further problems with oil shale have been documented by economist Professor
James Hamilton who writes:
"A recent
The global financial system is entirely dependent on a constantly increasing
supply of oil and natural gas. The relationship between the supply of oil and
natural gas and the workings of the global financial system is arguably the key
issue to understanding and dealing with Peak Oil, far more important than
alternative sources of energy, energy conservation, or the development of new
technologies, all of which are discussed in detail on page two of this site.
Dr. Colin Campbell presents an understandable model of this complex (and
often difficult to explain) relationship:
"It is becoming evident that the
financial and investment community begins to accept the reality of Peak Oil,
which ends the first half of the age of oil. They accept that banks created
capital during this epoch by lending more than they had on deposit, being
confident that tomorrow’s expansion, fuelled by cheap oil-based energy, was
adequate collateral for today’s debt.
The decline of oil, the principal
driver of economic growth, undermines the validity of that collateral which in
turn erodes the valuation of most entities quoted on Stock Exchanges. The
investment community however faces a dilemma. It desires to protect its own fortunes
and those of its privileged clients while at the same time is
reluctant to take action that might itself trigger the meltdown. It is a
closely knit community so that it is hard for one to move without the others
becoming aware of his actions.
The scene is set for the Second Great
Depression, but the conservatism and outdated mindset of institutional
investors, together with the momentum of the massive flows of institutional
money they are required to place, may help to diminish the sense of panic that
a vision of reality might impose. On the other hand, the very momentum of the
flow may cause a greater deluge when the foundations of the dam finally
crumble. It is a situation without precedent."
Commentator Robert Wise explains the connection between energy and money as
follows:
"It's not physics, but it's true:
money equals energy. Real, liquid wealth represents usable energy. It can be
exchanged for fuel, for work, or for something built by the work of humans or
fuel-powered machines. Real cost reflects the energy cost of doing something;
real value reflects the energy expended to build something.
Nearly all the work done in the world
economy -- all the manufacturing, construction, and transportation -- is done
with energy derived from fuel. The actual work done by human muscle power is
miniscule by comparison. And, the lion's share of that fuel comes from oil and
natural gas, the primary sources of the world's wealth."
In October 2005, the normally conservative London Times acknowledged that
the world's wealth may soon evaporate as we enter a technological and economic
"Dark Age." In an article entitled "Waiting for the Lights to Go
Out" Times reporter Bryan Appleyard wrote the
following:
"Oil is running out; the climate
is changing at a potentially catastrophic rate; wars over scarce resources are
brewing; finally, most shocking of all, we don't seem to be having enough ideas
about how to fix any of these things.
Almost daily, new evidence is emerging
that progress can no longer be taken for granted, that a new Dark Age is lying
in wait for ourselves and our children. . . . growth may be coming to an end. Since our entire financial
order — interest rates, pension funds, insurance, stock markets — is predicated
on growth, the social and economic consequences may be cataclysmic."
Even today the American President has again warned his people of the harder times to come, and as we can read as reported by the AFP News Service in their article titled "Bush warns of 'tough summer' with higher petrol prices", and which says:
From all the signs coming from the
But what will soon await these people is the complete collapse of their economy, massive food shortages, riots and insurrections in their largest cities, and the reasons for their final descent into a Fascist Police State will only at that time become known to them in all its brutal reality. And in that day when their cries reach beyond their closed borders, and which they will not even be able to escape from, who will be left in the world to hear their pleas?
The answer is simple…A world the people of the
© April 23, 2006 EU and US all rights reserved.
[Ed.
Note: The United States government actively seeks to find, and silence, any and
all opinions about the