The end of Big Oil?

March 19th, 2008, WorldNetDaily...

After three years of clandestine development, a Georgia company is now going public with a simple, natural way to convert anything that grows out of the Earth into oil.

March 20th, 2008, WorldNetDaily...

The peak oil theory, first espoused by Shell Oil geoscientist M. King Hubbert in 1956, has come under increasing criticism in recent years, as repeated predictions of world oil depletion have failed to match empirical data documenting increasing reserves.

For instance, data produced by the U.S. Department of Energy's Energy Information Administration currently shows 1.3 trillion barrels of proven oil reserves worldwide, more than ever in recorded history, despite a doubling in world oil consumption since the 1970s....

The peak oil theory argues the world's oil resources are finite and will be completely exhausted at a future date....

John Hofmeister, the Houston-based president of Shell Oil's U.S. operations, expressed doubt about the validity of peak oil theory in an appearance on CNBC's Squawk Box show.

"The peak oil theory has really swamped the world. God bless Matt Simmons," Hofmeister told CNBC anchor Carl Quintanilla, according to a transcript provided to WND by CNBC. "His assumptions are correct based on his hypotheses, but his hypotheses are too narrow."

Matt Simmons, a Houston-based investment banker who specializes in the energy industry, is widely known for his 2005 book, "Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy," in which he analyzed oil depletion data from Saudi Arabian wells.

Is it coincidence that the day after an announcement that fuel can be made in abundance from almost any organic matter, that Big Oil starts giving credence to the idea that there's plenty of oil, and it won't run out? As long as most people believed there was a limited supply of oil, people were content with the measures the government put in place to limit domestic drilling and oil production. But if an alternative is available, something Big Oil has worked feverishly for decades to try to prevent, then the benefit of limited supply is lost. The next most lucrative plan, would then be increased supply.

With a limited supply, prices can be maximized. But with competition, Big Oil's only hope is to start selling as much of the stuff as they can before the alternative can be produced in enough quantity to become a real competition. Be prepared for all the limits the government has placed on domestic oil production to be suddenly lifted.

While it seems frustrating that Big Oil will still make money off the scam, the silver lining is that the financial backing for most of the world's terrorists will dry up almost overnight--and that's a good thing.

Another benefit is that both the domestic oil production as well as the organic fuel production will introduce revenue from a previously non-existent source and will stimulate the economy. The Democrats will of course take full credit.

Posted by Danny Carlton at March 21, 2008 7:19 AM