Originally published at: https://peakprosperity.com/daily-digest/earthquakes-in-the-permian-oil-peaking-and-geopolitics-heating-up/
Geopolitics
Tensions between the U.S. and Russia have escalated as Russian state TV issued a veiled threat regarding Alaska. This development comes amid ongoing geopolitical friction and adds to the complex international landscape.
Energy
In the energy sector, Mexico’s oil production is projected to decline rapidly after 2030, according to internal government estimates. This projection aligns with historical inconsistencies in reported oil reserves among major producers. For instance, Kuwait’s actual reserves were leaked in 2005 to be half of what was publicly claimed, and similar discrepancies have been noted in OPEC’s reported reserves. The U.S. shale industry also faced setbacks with downgraded reserves in California. Mexico, the world’s 12th largest oil producer, faces significant production declines, which could be mirrored by other major producers. World oil production peaked in November 2018 and has not reached that level since, with March 2024 figures showing a decline. This trend is significant as it affects global economic vitality, given oil’s role in energy and transportation.
In Texas, the Railroad Commission has opened a probe after a series of earthquakes hit the Permian basin last week. Dozens of tremors were registered in counties close to oil and gas operations, with the largest measuring 5.1 on the Richter scale. The Commission is investigating wells in which operators have injected salty water that comes out of oil wells. The disposal wells within two and a half miles of the cluster of quakes in the Camp Springs area are under scrutiny. The area has seen a significant increase in seismicity since about 2019, believed to be caused by human activity related to oil and gas operations.
Economy
In financial news, the New York Fed has contracted JPMorgan Chase for key functions despite the bank’s controversial history, including a $6.2 billion derivatives loss and multiple felony counts. JPMorgan Chase has been the sole custodian of over $2.3 trillion in the Fed’s Mortgage-Backed Securities (MBS) since 2008. This relationship has raised concerns due to JPMorgan’s past misconduct and the New York Fed’s oversight role. Wall Street On Parade filed a Freedom of Information Act (FOIA) request to uncover how much JPMorgan Chase earned from the New York Fed in 2023. Although the New York Fed is not legally bound by FOIA, it claims to comply with its spirit. The request faced delays, and when documents were finally provided, the billing amounts were redacted. Despite this, the invoices revealed that JPMorgan billed for various services beyond custodianship, such as transaction fees, cash management, and security lending.
In the realm of cryptocurrency, Preston and Luke met in person for the first time at a Bitcoin conference, discussing their initial interview in 2021. They reflected on the increasing prominence of Bitcoin conferences and the political implications of high-profile speakers like Trump and Kennedy. The conversation shifted to Luke’s growing interest in Bitcoin, driven by its resilience and unique behavior compared to traditional bubbles. They discussed the US fiscal crisis, emphasizing the unsustainable debt levels and the need for negative real interest rates to manage it. The discussion covered the inflationary and deflationary pressures, the role of productivity improvements, and the impact of peak cheap oil on the economy. They also explored the implications of stablecoins and the potential for Bitcoin-backed treasuries to stabilize the financial system.
Politics
In legal news, a federal judge ruled on July 28 that a Mississippi law allowing ballots received up to five days after an election to be counted is lawful. U.S. District Judge Louis Guirola Jr. referenced the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA), which permits post-election receipt of overseas ballots mailed by Election Day, suggesting that the Mississippi statute is similarly permissible. The ruling dismissed cases brought by the Republican National Committee, the Mississippi Republican Party, and the Libertarian Party of Mississippi, who argued that the law extended the federal election beyond Election Day set by Congress. Judge Guirola concluded that in the absence of federal regulation on absentee mail-in ballot procedures, states have the authority to set their own rules.
Lastly, the events in Butler, Pennsylvania on July 13th are being investigated, but some details have emerged. Alleged would-be assassin Thomas Crooks reportedly had $1.5 million in offshore accounts and connections to extremist groups. A white van loaded with explosives found at the scene was registered to a residence in Mesa, Arizona, and a company called Yearick Armory. Maxwell Yearick, linked to the van, is reported to be alive despite previous claims of his death. His family, involved in manufacturing explosives, allegedly sells to guerrilla groups with CIA facilitation. Police bodycam images show muzzle flashes from a ground-floor window, contradicting earlier reports. Yearick, a 37-year-old with purported ties to Antifa, the CIA, the Ukrainian Army, and Kurdish separatists, returned to the U.S. in April 2024 after reportedly fighting in Ukraine and organizing Antifa protests in multiple cities.
Sources
Russian State TV Issues Ominous Threat to US: ‘Our Alaska’
Russian State TV Issues Ominous Threat to US: ‘Our Alaska’
Source | Submitted by rhollenb
Mexican Oil Production Set to Plummet Post-2030: A Harbinger of Global Decline?
Mexican oil production to decline rapidly after 2030: Tip of the iceberg?
Source | Submitted by roosterrancher
New York Fed’s Cozy Relationship with JPMorgan Chase: FOIA Request Reveals Redacted Invoices and Unanswered Questions
The New York Fed, which has bank examiners engaged in supervising JPMorgan Chase, has also repeatedly provided bailout funds to JPMorgan Chase; was supervising JPMorgan Chase when it lost $6.2 billion of deposits from its federally-insured bank by gambling in derivatives on its London trading desk; allowed JPMorgan Chase’s Chairman and CEO, Jamie Dimon, to previously sit on the New York Fed’s Board of Directors, even as he faced the $6.2 billion derivatives trading scandal; and the New York Fed has exclusively used JPMorgan Chase to hold, as custodian, more than $2.3 trillion of the Federal Reserve’s Mortgage-Backed Securities (MBS) for the past 15-1/2 years – despite JPMorgan Chase admitting to five felony counts brought by the criminal division of the U.S. Department of Justice during that time.
Source | Submitted by rhollenb
Texas Oil Regulator Investigates Permian Basin Earthquakes Linked to Oil Operations
The Railroad Commission of Texas, the oil regulator in America’s top oil-producing state, has opened a probe after a series of earthquakes hit the Permian basin last week.
Source | Submitted by AaronMcKeon
Bitcoin Conference 2023: Trump, Kennedy, and the Shift in Political and Financial Power
Politically though, it’s supercharged this year.
Source | Submitted by rhollenb
Federal Judge Upholds Mississippi Law Allowing Post-Election Day Ballot Receipt
A Mississippi law that allows ballots received up to five days after an election to be counted is lawful, a federal judge ruled on July 28.
Source | Submitted by bcoop
Gov. Shapiro Accused of Involvement in Trump Assassination Attempt and Other Crimes
Gov Shapiro Implicated In Trump Assassination Try And Many Other Crimes
Source | Submitted by Ric Dee
Mystery Deepens: Explosives, Offshore Accounts, and Missing Persons Linked to Trump Rally Incident
Important details about what transpired in Butler, Pennsylvania on July 13th are getting scrubbed off of Google but I was able to find some interesting leads using the Freespoke search engine, which I highly recommend.
Source | Submitted by irenelekkas
