DrumBeat: July 29, 2006

[Update by Leanan on 07/29/06 at 9:32 AM EDT]

In a shocking development, EIA Revises May US Oil Demand Growth Down by 2.5%.

U.S. oil demand in May averaged 20.463 million barrels a day - the highest-ever for the month - and 1.6% above a year earlier, the Energy Information Administration said Friday.

But the latest figure is a sharp 2.5% downward revision from earlier estimates showing 4.2% growth in the month from 20.139 million barrels a day a year ago. Estimates published last month suggested May demand averaged 20.994 million barrels a day, the most for any month since December 2005. The revised figure is strongest for any month since March.

[Update by Leanan on 07/29/06 at 9:43 AM EDT]


Indonesia oil well explodes, thousands evacuated


Pakistan fears major energy crisis


Oil from bombed plant covers Lebanon shore

BEIRUT, Lebanon - A black coat of oil now covers the Lebanese capital's once-beautiful sandy Mediterranean shore, spilled from a power plant that was knocked down by Israeli warplanes two weeks ago.

Fishermen say hundreds of oil-coated fish have been washed ashore in what is the country's worst ever environmental disaster.


Asean mulls joint oil stockpile


Shell Canada plans to expand in oil sands despite rising bill


U.K.: Retirees are angry over natural gas prices


Russia: A New Gas Strategy Emerges

A Gazprom subsidiary recently issued a report recommending a dramatic change of strategy for the Russian gas industry. It determined that Russia should decrease exports of natural gas to European markets and concentrate instead on developing new gas fields to keep up with domestic demand.

American Coalition for Ethanol VP Brian Jennings is caught telling a lie about ethanol subsidies:

Caught in a Lie

He says that the subsidy is actually an incentive for the petroleum industry, and that ethanol producers don't benefit. But guess how he reacted to calls for ending the subsidy?

Also, drought starting to impact ethanol plants:

Drought Impacting Ethanol Plants

Corn fields in the Aberdeen area are withering from this summer's hot and dry conditions.

Heartland Grain Fuels General Manager Bill Paulsen says, "There's a large amount of corn that won't be harvested Aberdeen and West."

And for ethanol plants like Heartland Grain Fuels...that's bad news. The company usually gets corn locally from areas West of town.

Paulsen says, "We're running on last year's crop and we will through harvest of this year, so the crunch really starts coming next summer, is when the biggest crunch for the lack of corn that's produced in northeastern South Dakota."

Cheers,

RR

Every corn-producing state west of the Mississippi is suffering from some degree of drought:

http://www.drought.unl.edu/dm/monitor.html

This area produces nearly 60% of the US corn crop, led by Iowa, Nebraska, and southern Minnesota.  Most of the major corn growers east of the Mississipi (Illinois, Indiana, Ohio) appear to be better off.  Wisconsin is the exception; it is experiencing unusual drought in the north and central parts of the state, but less so in the south, where most of its corn is grown.

Robert - for every farmer thats showing drought conditions or poor crops, there are two not saying anything because their crop is great.

Corn futures (and soybeans) are near their low prices for the year - if there was too much ethanol demand and/or drought, prices would be much higher. The market will not solve our long term problems, but its pretty good at pricing short term supply and demand.

december corn futures chart

Depends on how much is irrigated. Look at the link that "Consume More" supplied. All of central South Dakota is experiencing exceptional drought conditions. Note that the guy I quoted said they are still using last years crop, and next year is when they will feel it.

Cheers,

RR

that makes a bit more sense.
Next years future (dec 07) corn chart doesnt look as bad
Crop futures prices are not a bellweather for future supplies.
Call the USDA, they'll tell you the same thing.
Lot's of stuff going on:

The 'Arab system' is dying in Lebanon

"With this Hizbullah operation," said Beirut columnist Hussam Itani, "the collapse of the Arab system has given birth to its alternative." That alternative, anarchic by definition, is one in which non-state actors derive their strength from the very fact that, militant, populist, welling up from below, they have little to do with the system, a system they render yet more impotent and irrelevant as they impose their agenda on it and the world.

The rhetoric against Iran is starting to heat up:

Blair warns Iran, Syria of 'confrontation'

British Prime Minister Tony Blair warned Iran and Syria that they face 'the risk of increasing confrontation' unless they reform their behavior in the Middle East.

'Iran and Syria have a choice. And they may think that they can avoid this choice; in fact, they can't,' Blair said after talks at the White House with US President George Bush.

'They can either come in and participate as proper and responsible members of the international community, or they will face the risk of increasing confrontation,' said Blair.

Hezbollah leader said to be hiding in Iranian Embassy

NBC/WSJ poll: U.S. pessimism on increase Doubts about children's future and concerns about wars weigh heavily

South America: Hugo Chávez to the fore

Is this starting to paint a picture yet?  

The picture being painted is an inkblot.  What do you see?
I see the opposite of whatever you see! :-) Where ya been?  

I see the coming of war, as the US tries to assert hegemony and the world resists.   I see nations with oil asserting new power, and the US and its allies fighting back.

I see the failing of an Empire, and the coming conflicts that this will involve.

I forget the name of the book but it was written by to chinese generals in the 90's about how to bring down the US through unconventional warfare (by encouraging third party small states to engage/challenge us) and a repeated cold war expressed through korea. At the same time they said to keep trade relations and destroy our economy through mercantilism.  I'll post it later but need to llok on my shelf.  I have been in the process of moving to brasil.  After what happened to my fiance she won't live here.

I see the same thing but still see korea/iran as the problem.  

id like to know the title of that book, thanks. what happened to your fiance? Are you Brazilian?
No way I am a redneck (ask cherenkov) from tennessee, I work in GOMEX as a medic, but I get a paid flight to and from anywhere so I am moving to Brasil.  My best friend from paramedic school introduced me to his sister a few years back and she is getting her phd in political science at Unicamp near Sao Paulo.  So that is how I ended up there.

Last time I flew her up she was interrogated for four hours and they tore a page from her diary and had her strip searched and made her cry.  Long story but she had all her documents and no contraband and was still treated that way.  So she is a bit anti american.  Odd couple if you know me.

Here is the book it is on amazon, hard to call it a conspiracy theory since it was written a few years back but a lot of things click when you read it.  At the same time though we use similar methods to cajole foreign powers.
--------------------------------------------------------------------------------

30.    Unrestricted Warfare: China's Master Plan to Destroy America
by Qiao Liang, Wang Xiangsui

you might be better off in Brazil. They make better ethanol than we do and also have crazy Carnivale parties that make New Orleans look like catholic school. good luck.
I have confidence she'll bring you around eventually!
Oilrig Medic -

It both saddens and angers me to learn of yet another example in which someone arriving in the US is bullied by police-state thugs that pose as airport screeners.  The way your fiancee was treated makes me ashamed to be an American, something I never thought I would be saying as recently as only a few years ago.

The irony is that Brazil does not exactly enjoy a reputation for being a paragon of liberty and freedom, and if your finacee finds America repressive in comparison, then that speaks volumes about where this country is headed.

Good luck on your move to Brazil. (If I were younger, I'd seriously consider getting out of Dodge myself.)

The USA has always behaved like this...

In 1975... having spent 5 years increasingly growing to love American literature & music... I decided I would like to spend 3 months travelling to "all those places" I was reading/ hearing about... so I saved up, quit my job... and was refused a visa in London... "If you don't have a job how do we know you will return from our wonderful country?"

No matter that Mexicans were walking over the border in their thousands (even back then)

So I flew to Canada and ended up getting a US visa in Winnipeg in 5 minutes...crossed over at Vancouver on a Greyhound without even being checked and ended up hitchhiking the length & breadth of USA...

Five years later in 1980 visa restrictions were lifted... so I decided to repeat the exercise... this time I was interrogated at JFK... had my diary & address book scanned... Spent 6 wonderful weeks delivering cars with DriveAway...

But after two bad experiences with US bureaucracy ...I didn't return to the good ol'US of A for another 20 years

( Sorry...not really PO... just an opportunity to vent!!)

I think this "welling up from below" stuff is what kills Empires. The "Working independently together" method was espoused by the various US militias in the 1990s and it worked - as awful as his act was, Timothy McVeigh pointed out that if the US internal police forces kept shooting kids, stomping cats to death, terrorizing old people, killing more kids, shooting babes in arms, etc then unpredictable independent operators such as him would make 'em hurt. And he did. His awful act did have the effect of causing the US's internal forces, use of which against the US population was ramping up to a frightening degree, to sit back and reconsider. Other than Waco, McVeigh, etc themselves, the biggest thing that percolated through the media to the proles was a lot of noise about the "militias", first making them out to be scary and then quickly changing to ridiculing them as a bunch of fat old men running around in the woods, since gov't/militia skirmishes were over (the point had been proven and the gov't didn't feel it would win an all-out war with the populace) and the idea was to make militias sound silly and hope they'd disband. Many have, the militia movement has reallly died down, but it's reasy to rise up in a second if needed - this is the lesson the US gov't learned.

Not too long after this, the attention was turned to foreigners, especially those handy ay-rabs, and of course 9-11 gave everyone some bad guys to pay attention to.

Someone posted in another thread, there was a comparison being made between how the collapse of Rome went and how it might go for the US, and they said before there's actual starvation, what really happens is you come to hate your country. By this I think they mean not only literally hating your country, easy to do if your country is the US, but that by hating your country you're willing to leave it, live low enough on the energy scale to be untaxable, etc. (Living low on the energy/income scale enough that you're not taxable is the method advocated by That Guy Who Wrote The Book "Radical Simplicity". I think it's a noble method and the only one available to most of us. Most of us would leave the US if we could.)

You are smart, and fortunate, to leave the US. Your wife is right - she's had one taste of the Evil Empire and No More.

Luke Skywalker grew up wanting to be a pilot for the Imperial navy......

I am an american and I do not see us as an evil empire.

I want to fix things when they are broken.

I can only hope things go well...........

Luke Skywalker.... yes, good quote because movies are reality.

However, Geo. Washington did grow up wanting to be a British officer. I grew up wanting to be part of The System, working for HP or IBM, building fancier and shinier cogs for a bigger and better machine.

This is what happens when Empires go downhill, they get old and ugly and smelly and when they're not peeing on the carpet or eating the chickens, they're snarling and snapping at the 5 year old kid next door because he made eyes at the food bowl, and next thing you know anyone who gets in the way is getting bit and it's time to put the dangerous bugger down....

I am an American and I do not see us as an evil empire.

Oilrig MD,

There is much that is good about America.
But which way are the weather-man vanes pointing?

Calling something a "Patriot Act" when on fact it is an Invasion of Rights play? That does not bode well. Talking about "No Child Left Behind" when you mean after the Rapture? That doesn't sound too kosher.

Something is wrong some place.

Did you see Alex Jones on C-SPAN?

Scary stuff if true. He claims the US Governement orchestrated 9/11 and not Bin Laden. Claims to have irrefutable proof.

This is not a new claim. It is interesting that it appeared on CSPAN. I've believed the government was involved from the beginning. It was a very flawed plan. When you have the support of TPTB and the media you just ignore the obvious. The Bush administration has demonstrated their willingness to commit crimes over and over. They are guilty of war crimes and treason. Their energy policy is simply a means to make big oil rich. Our country is completely unprepared for peak oil. This scares me more than anything.
Our country is completely unprepared

Let's keep hoping Yergin is right, that we have 30 more years and that somewhere in this long era of "undulation" a light bulb goes off and the American populace wakes up and realizes the herd is a headin' for the cliff.

Git along. Go along lill' doggie. Yeeha. Rawhide.

(Right click on image & pick "View Image" for bigger view)

http://www.loosechange911.com/

now free on google video!

The CSPAN broadcast of the Panel Discussion held on the second day of the conference which featured Webster Tarpley, Steven Jones, Bob Bowman, James Fetzer, & Alex Jones IS BEING RE-AIRED TUESDAY August 1st at 6:10pm EDT.
The way your fiancee was treated makes me ashamed to be an American,

DON'T!

Americans have other qualities and you better bear with the "negatives" because deeply ingrained cultural traits never go away.
Remember the early settlers were a mix of bigots and outlaws, from there you get :

- The righteousness of bigots.
- The ruthlessness of outlaws.
- The entrepreneurial mindset of migrants to a risky yet promising place.

You can't have it all good :-)

P.S. Just think what this kind of "stickyness" of behaviors (not only the ones above) mean with respect to the upcoming and quickly unfolding changes...

I too would like to know the title.

Back in March China threatened to sell US bonds if we didn't behave ourselves.  And Baby Hugo is visiting Iran today... and he also made threats about cutting off oil imports to the US if we do not behave ourselves...

The West is losing Leverage everyday ... all because of Peak Energy and Matter.  Fewer choices - harder rocks and hard places - claustrophobia is setting in for All Sides.

The World was already pissed off at us enough before the Lebanon thing, now, if there's a pissed-offedness scale, we're probably doubled the reading.

I'm surprised Hugo and the rest haven't already dropped the hammer on us, but I think they know what they're doing - the idea is to kill the Beast without the Beast killing you in its death throes. They need to come up with an economic/resource/possible force of arms triple whammy that's very well thought out and well .... I have faith in 'em.

Very astute.
the book "Unrestricted Warfare" -- reviewed in Wikipedia http://en.wikipedia.org/wiki/Unrestricted_Warfare

It is hard to see how our government is combatting any of the modern threats in any but militaristic terms -- just as the book predicts.  

Catastophic system failure seems almost guaranteed.  Surely the smart folks in the defense and state departments can see this.  Is all the warfare just a smokescreen and they are really working through secret back channels to defeat our enemies?

i think the people in the defense department are blinded by their own arrogance.
they are so secure in the thinking that they are the top military in the world they cannot fathom anyone being able to do this.
Don't stop by just saying "arrogance".  Also add a huge serving of greed, superstition (My god is greater than your god), idiotic optimism and disdain for human life.

But you also have to remember that the DOD is like a giant chainsaw.  It does exactly (and occasionally reluctantly) what the politicians tells it to do.

And I say this after 20 years as a DOD employee.

no wonder youre a bitteroldcoot...:)
yup!
Have you read James' Carrol's new book House of War?
Catastophic system failure seems almost guaranteed.

Very likely.
The "smart folks in the defense and state department" are no match for ancient chinese strategies.
I did not read the book but the Wikipedia entry is explicit enough, this is very typical of the chinese approach.
The whole of China has been living thru more than 2 millenia of such struggles, since Warring States.
You may also consider that the publishing of this book IS part of the assault as a PsyOP and that it contains a calculated mix of truth and disinformation.
Aren't the authors colonels in the People's Liberation Army?
I doubt the military in China are allowed to go public as casually as in the US.
China has been done by westerners only with the help of technology which they underestimated, but now they are up to speed on technology.

Though, the various impending "Peaks" are throwing in a few aggravating factors for everyone, "interesting times" indeed.

Lots of stuff going on indeed Twilight - too much to keep up with.    

The US quickly shuttles "Weapons and supplies" to Israel to the dismay of Mr. Blair.  Bunker Busters are said to be part of the package (although their may be much more... why not tell Blair until after the fact unless you don't want even the Brits Sniffin' Around ???).

Now Israel backs off from Tyre... maybe a carpet bombing campaign to level some villages is in the works ???? - as the rest of the 30K reserves Israel called up prepare to Mop Up afterwards??? --- it will be interesting to see how well the Hezbollah Bunker system holds up).

Iran rejects the Nuke resolution the Group of 8 Hegemonz cobbled together the past few days...  

Hezbollah "politicians" backed a "peace package" that doesn't mention disarming Hezbollah and which they know will not be acceptable to Israel (meanwhile, Israel continues to offer a similar package they know will not be acceptable to Hezbollah).

Bush and Blair QUICKLY try to find forces to join a "non-UN Peace Keeping Force" (hezbollah asked who the International Forces will be Aiming At...) and Iran finds it's options and weapons are disappearing fast while The West Carves a New Middle East - which of course is exactly what They want to do, but they want to carve a little differently ;)

Oh what a web we have weaved ...

Both Pakistan and India are Energy Basket Cases with nuclear weapons and are once again rattling their sabres (pakistan is a Nuclear Allah-Worshipping country - a very dangerous wild card infiltrated by Moozlim fanatics).

Nut cases in North Korea Just Say No to the UN resolution telling them to come back to the 6 party talks or starve to death...

US consumers grumble about gas prices and ReRuns....

Dangerous Combinations of Events ... The Perfect Storm?

and speaking of perfect storms - the Atlantic is starting to bubble up.  Add some spin - and there's plenty of that around these days! - and everybody gets the "perfect excuse" for economic collapse this fall.  Act O'god.  Like I always say, the important thing to most people is who to blame. And the most important thing to gov'ts is convincing the people to blame someone else!
"the important thing to most people is who to blame."

THANK YOU SUNSPOT !! spot on.  

That is the most annoying part of this experience so far for me.

And if you look back at history, I think at TimezUp like these, you see there was no "one" to blame.  Take out any individual and someone else would have filled his role and the outcome would be very similar to what we have today.

And again, you are exactly right - we are actually encouraged by our LeADerz to "blame someone else" - that is the norm historically and the Chosen Scapegoats curiously happen to have what We Need (including Energy = slave labor).

"In the End, Everyone is Responsible for Themselves," says Mother Nature (I think she means "thou shall not become overly dependent on your neighbor, or covet your neighborz ass or solar PV system, - or depend on Hal at the Utility company...)

sendoilplease -

Apparently, not everyone is as worried as some of us are.

A few days ago, the letters-to-the-editor section of our local paper had no less than two letters voicing complaints that the new format of the paper's weekly TV section was more difficult to read than the old one.

However, among the letters for most of the whole week, there was not a single one about energy, Iraq, or the Israeli destruction of Lebanon.  The few times there are letters remotely connected to 'energy', they are consist of complaints about high gasoline prices. This may be more the result of timidity on the part of the paper's editorial staff than true reader apathy, but I suspect it's the result of both.

I did notice, though, that since the Israel/Lebanon war started, our paper has published numerous syndicated pro-Israel editorials but only one that mildly voiced opposition to  what Israel has been doing. The paper is part of the Gannett chain of papers, so this may be a corporate policy.

If you want to get a more unbiased view of what's going on in Lebanon and the Middle East in general,  totally ignore US mainstream media TV (including PBS) and watch BBC World News. US coverage is more sanitized, whilst BBC coverage is far more gritty and graphic. Better yet, don't watch any TV news at all.