Editor’s Note: The following report is excerpted from Jerome Corsi’s Red Alert, the premium online newsletter published by the current No. 1 best-selling author, WND staff writer and columnist. Subscriptions are $99 a year or $9.95 per month for credit card users. Annual subscribers will receive a free autographed copy of “The Obama Nation,” the blueprint for Obama’s first term in office.
For the first time in more than 20 years the Energy Information Administration is projecting virtually no growth in U.S. oil consumption, Jerome Corsi’s Red Alert reports.
“U.S. oil use remains near its present level through 2030 as modest growth in overall liquids demand is met by biofuels,” the EIA revealed.
According to EIA reports, the price of gasoline in the United States is approximately $1.65 per gallon, down a dramatic 134 percent from a year ago.
Meanwhile, OPEC has slashed oil output by a record 7 percent, or 2.2 million barrels a day. This happened after it cut 1.7 million barrels a day over the last three months to restrict oil supplies and keep prices from falling further.
The OPEC cut was 200,000 barrels a day more than analysts expected. Other cuts are likely to follow as Russia and Azerbaijan may cut an additional 600,000 barrels of day in production just to support OPEC, Corsi wrote.
“We needed to do something big,” Kuwait Oil Minister Mohammad Al Olaim told the Wall Street Journal. “Demand is falling fast.”
Despite OPEC’s announcement, oil ended down 8.12 percent, or $3.54, to $40.06 a barrel on the New York Mercantile Exchange.
It has fallen two-thirds in price from the all-time high of $147 a barrel reached only last July, less than six months ago.
“The price drop is clearly bad news for oil-producing nations, including Mexico, Venezuela and Nigeria, as well as several Middle Eastern countries, including Saudi Arabia, Kuwait and Iran,” Corsi wrote. “For oil-consuming companies, the reduction is a hidden stimulus package that lowers the cost of gasoline at the pump and takes considerable price pressure off airlines and shipping companies.”
Now the EIA projects total demand for renewable fuels, including ethanol and biodiesel, will grow 3.3 percent per year until 2030. This is due to the federal renewable fuel standard and state requirements for utilities to generate more utility from renewable sources.
However, Corsi writes, “biofuels” don’t actually save petroleum, given the amount of oil-related products needed to raise the corn (or other biological material) from which it is produced, its lower efficiency and the greater cost of producing and transporting them.
Oil is abiotic in nature and available in plentiful supply at deep Earth levels, he noted, as shown by recent offshore finds in the Gulf of Mexico and off the coast of Brazil.
Now Red Alert’s author, whose books “The Obama Nation” and “Unfit for Command” have topped the New York Times best-sellers list, notes the rise in prices to $147 a barrel and its precipitous drop to the current $40 a barrel emphasize oil’s commodity nature and its sensitivity to worldwide economic demand.
Red Alert’s Jerome Corsi received his Ph.D. from Harvard University in political science in 1972. For nearly 25 years beginning in 1981, he worked with banks throughout the United States and around the world to develop financial services marketing companies to assist banks in establishing broker/dealers and insurance subsidiaries to provide financial planning products and services to their retail customers. In this career, Corsi developed three different third-party financial services marketing firms that reached gross sales levels of $1 billion in annuities and equal volume in mutual funds. In 1999, he began developing Internet-based financial marketing firms, also adapted to work in conjunction with banks.
In his 25-year financial services career, Corsi has been a noted financial services speaker and writer, publishing three books and numerous articles in professional financial services journals and magazines.
For more on the future of oil prices and for financial guidance during difficult times, read Jerome Corsi’s Red Alert, the premium, online intelligence news source by the WND staff writer, columnist and author of the New York Times No. 1 best-seller, “The Obama Nation.”
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