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CONFESSIONS OF AN
"EX" PEAK OIL BELIEVER
by F. William
Engdahl
September 25, 2007
The
good news is that panic scenarios about the world running out of oil
anytime soon are wrong. The bad news is that the price of oil is going
to continue to rise. Peak Oil is not our problem. Politics is. Big Oil
wants to sustain high oil prices. Dick Cheney and friends are all too
willing to assist.
On
a personal note, I’ve researched questions of petroleum, since the
first oil shocks of the 1970’s. I was intrigued in 2003 with something
called Peak Oil theory. It seemed to explain the otherwise inexplicable
decision by Washington to risk all in a military move on Iraq.
Peak
Oil advocates, led by former BP geologist Colin Campbell, and Texas
banker Matt Simmons, argued that the world faced a new crisis, an end to
cheap oil, or Absolute Peak Oil, perhaps by 2012, perhaps by 2007. Oil
was supposedly on its last drops. They pointed to our soaring gasoline
and oil prices, to the declines in output of North Sea and Alaska and
other fields as proof they were right.
According
to Campbell, the fact that no new North Sea-size fields had been
discovered since the North Sea in the late 1960’s was proof. He
reportedly managed to convince the International Energy Agency and the
Swedish government. That, however, does not prove him correct.
Intellectual
fossils?
The
Peak Oil school rests its theory on conventional Western geology
textbooks, most by American or British geologists, which claim oil is a
‘fossil fuel,’ a biological residue or detritus of either fossilized
dinosaur remains or perhaps algae, hence a product in finite supply.
Biological origin is central to Peak Oil theory, used to explain why oil
is only found in certain parts of the world where it was geologically
trapped millions of years ago. That would mean that, say, dead dinosaur
remains became compressed and over tens of millions of years fossilized
and trapped in underground reservoirs perhaps 4-6,000 feet below the
surface of the earth. In rare cases, so goes the theory, huge amounts of
biological matter should have been trapped in rock formations in the
shallower ocean offshore as in the Gulf of Mexico or North Sea or Gulf
of Guinea. Geology should be only about figuring out where these pockets
in the layers of the earth, called reservoirs, lie within certain
sedimentary basins.
An
entirely alternative theory of oil formation has existed since the early
1950’s in Russia, almost unknown to the West. It claims conventional
American biological origins theory is an unscientific absurdity that is
un-provable. They point to the fact that western geologists have
repeatedly predicted finite oil over the past century, only to then find
more, lots more.
Not
only has this alternative explanation of the origins of oil and gas
existed in theory. The emergence of Russia and prior of the USSR as the
world’s largest oil producer and natural gas producer has been based
on the application of the theory in practice. This has geopolitical
consequences of staggering magnitude.
Necessity:
the mother of invention
In
the 1950’s the Soviet Union faced ‘Iron Curtain’ isolation from
the West. The Cold War was in high gear. Russia had little oil to fuel
its economy. Finding sufficient oil indigenously was a national security
priority of the highest order.
Scientists
at the Institute of the Physics of the Earth of the Russian Academy of
Sciences and the nstitute of Geological Sciences of the Ukraine Academy
of Sciences began a fundamental inquiry in the late 1940’s: where does
oil come from?
In
1956, Prof. Vladimir Porfir’yev announced their conclusions: ‘Crude
oil and natural petroleum gas have no intrinsic connection with
biological matter originating near the surface of the earth. They are
primordial materials which have been erupted from great depths.’ The
Soviet geologists had turned Western orthodox geology on its head. They
called their theory of oil origin the ‘a-biotic’
theory—non-biological—to distinguish from the Western biological
theory of origins.
If
they were right, oil supply on earth would be limited only by the amount
of organic hydrocarbon constituents present deep in the earth at the
time of the earth’s formation. Availability of oil would depend only
on technology to drill ultra-deep wells and explore into the earth’s
inner regions. They also realized old fields could be revived to
continue producing, so called self-replentishing fields. They argued
that oil is formed deep in the earth, formed in conditions of very high
temperature and very high pressure, like that required for diamonds to
form. ‘Oil is a primordial material of deep origin which is
transported at high pressure via ‘cold’ eruptive processes into the
crust of the earth,’ Porfir’yev stated. His team dismissed the idea
that oil is was biological residue of plant and animal fossil remains as
a hoax designed to perpetuate the myth of limited supply.
Defying
conventional geology
That
radically different Russian and Ukrainian scientific approach to the
discovery of oil allowed the USSR to develop huge gas and oil
discoveries in regions previously judged unsuitable, according to
Western geological exploration theories, for presence of oil. The new
petroleum theory was used in the early 1990’s, well after the
dissolution of the USSR, to drill for oil and gas in a region believed
for more than forty-five years, to be geologically barren—the
Dnieper-Donets Basin in the region between Russia and Ukraine.
Following
their a-biotic or non-fossil theory of the deep origins of petroleum,
the Russian and Ukrainian petroleum geophysicists and chemists began
with a detailed analysis of the tectonic history and geological
structure of the crystalline basement of the Dnieper-Donets Basin. After
a tectonic and deep structural analysis of the area, they made
geophysical and geochemical investigations.
A
total of sixty one wells were drilled, of which thirty seven were
commercially productive, an extremely impressive exploration success
rate of almost sixty percent. The size of the field discovered compared
with the North Slope of Alaska. By contrast, US wildcat drilling was
considered successful with a ten percent success rate. Nine of ten wells
are typically “dry holes.”
That
Russian geophysics experience in finding oil and gas was tightly wrapped
in the usual Soviet veil of state security during the Cold War era, and
went largely unknown to Western geophysicists, who continued to teach
fossil origins and, hence, the severe physical limits of petroleum.
Slowly it begin to dawn on some strategists in and around the Pentagon
well after the 2003 Iraq war, that the Russian geophysicists might be on
to something of profound strategic importance.
If
Russia had the scientific know-how and Western geology not, Russia
possessed a strategic trump card of staggering geopolitical import. It
was not surprising that Washington would go about erecting a “wall of
steel”—a network of military bases and ballistic anti-missile
shields around Russia, to cut her pipeline and port links to western
Europe, China and the rest of Eurasia. Halford Mackinder’s worst
nightmare--a cooperative convergence of mutual interests of the major
states of Eurasia, born of necessity and need for oil to fuel economic
growth--was emerging. Ironically, it was the blatant US grab for the
vast oil riches of Iraq and, potentially, of Iran, that catalyzed closer
cooperation between traditional Eurasian foes, China and Russia, and a
growing realization in western Europe that their options too were
narrowing.
The
Peak King
Peak
Oil theory is based on a 1956 paper done by the late Marion King Hubbert,
a Texas geologist working for Shell Oil. He argued that oil wells
produced in a bell curve manner, and once their “peak” was hit,
inevitable decline followed. He predicted the United States oil
production would peak in 1970. A modest man, he named the production
curve he invented, Hubbert’s Curve, and the peak as Hubbert’s Peak.
When US oil output began to decline in around 1970 Hubbert gained a
certain fame.
The
only problem was, it peaked not because of resource depletion in the US
fields. It “peaked” because Shell, Mobil, Texaco and the other
partners of Saudi Aramco were flooding the US market with dirt cheap
Middle East imports, tariff free, at prices so low California and many
Texas domestic producers could not compete and were forced to shut their
wells in.
Vietnam
success
While
the American oil multinationals were busy controlling the easily
accessible large fields of Saudi Arabia, Kuwait, Iran and other areas of
cheap, abundant oil during the 1960’s, the Russians were busy testing
their alternative theory. They began drilling in a supposedly barren
region of Siberia. There they developed eleven major oil fields and one
Giant field based on their deep ‘a-biotic’ geological estimates.
They drilled into crystalline basement rock and hit black gold of a
scale comparable to the Alaska North Slope.
They
then went to Vietnam in the 1980s and offered to finance drilling costs
to show their new geological theory worked. The Russian company Petrosov
drilled in Vietnam’s White Tiger oilfield offshore into basalt rock
some 17,000 feet down and extracted 6,000 barrels a day of oil to feed
the energy-starved Vietnam economy. In the USSR, a-biotic-trained
Russian geologists perfected their knowledge and the USSR emerged as the
world’s largest oil producer by the mid-1980’s. Few in the West
understood why, or bothered to ask.
Dr.
J. F. Kenney is one of the only Western geophysicists who has taught and
worked in Russia, studying under Vladilen Krayushkin, who developed the
huge Dnieper-Donets Basin. Kenney told me in a recent interview that
“alone to have produced the amount of oil to date that (Saudi
Arabia’s) Ghawar field has produced would have required a cube of
fossilized dinosaur detritus, assuming 100% conversion efficiency,
measuring 19 miles deep, wide and high.” In short, an absurdity.
Western
geologists do not bother to offer hard scientific proof of fossil
origins. They merely assert as a holy truth. The Russians have produced
volumes of scientific papers, most in Russian. The dominant Western
journals have no interest in publishing such a revolutionary view.
Careers, entire academic professions are at stake after all.
Closing
the door
The
2003 arrest of Russian Mikhail Khodorkovsky, of Yukos Oil, took place
just before he could sell a dominant stake in Yukos to ExxonMobil after
a private meeting with Dick Cheney. Had Exxon got the stake they would
have control of the world’s largest resource of geologists and
engineers trained in the a-biotic techniques of deep drilling.
Since
2003 Russian scientific sharing of their knowledge has markedly
lessened. Offers in the early 1990’s to share their knowledge with US
and other oil geophysicists were met with cold rejection according to
American geophysicists involved.
Why
then the high-risk war to control Iraq? For a century US and allied
Western oil giants have controlled world oil via control of Saudi Arabia
or Kuwait or Nigeria. Today, as many giant fields are declining, the
companies see the state-controlled oilfields of Iraq and Iran as the
largest remaining base of cheap, easy oil. With the huge demand for oil
from China and now India, it becomes a geopolitical imperative for the
United States to take direct, military control of those Middle East
reserves as fast as possible. Vice President Dick Cheney, came to the
job from Halliburton Corp., the world’s largest oil geophysical
services company. The only potential threat to that US control of oil
just happens to lie inside Russia and with the now-state-controlled
Russian energy giants. Hmmmm.
According
to Kenney the Russian geophysicists used the theories of the brilliant
German scientist Alfred Wegener fully 30 years before the Western
geologists “discovered” Wegener in the 1960’s. In 1915 Wegener
published the seminal text, The
Origin of Continents and Oceans, which suggested an original unified
landmass or “pangaea” more than 200 million years ago which
separated into present Continents by what he called Continental
Drift.
Up
to the 1960’s supposed US scientists such as Dr Frank Press, White
House science advisor referred to Wegener as “lunatic.” Geologists
at the end of the 1960’s were forced to eat their words as Wegener
offered the only interpretation that allowed them to discover the vast
oil resources of the North Sea. Perhaps in some decades Western
geologists will rethink their mythology of fossil origins and realize
what the Russians have known since the 1950’s. In the meantime Moscow
holds a massive energy trump card.

© 2007 F.
William Engdahl
Editorial Archive
F.
William Engdahl
is author of the book, ‘A Century of War: Anglo-American
Oil Politics and the New World Order,’ Pluto Press Ltd. He has a
soon-to-be published book on GMO titled, ‘Seeds of Destruction: The
Hidden Political Agenda Behind GMO’. He may be contacted through his
website, www.engdahl.oilgeopolitics.net.
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