I know first hand from very reliable sources that themselves have visited the Rossi/Industrial Heat E-Cat customer that the plant works very well. This has been verified both by measurements made by the customer and by significantly reduced electricity bills. The plant seems to be able to produce heat from electricity with a COP in the range of 20-80 depending on the level of self-sustain-mode applied. I guess that is what Rossi is working on right now.

The implications of COP in this range is of course nothing less than … revolutionary … “a tipping point” to quote Tom Darden

This is a good day!

I made a quick graph that shows cftc.gov data on producer and swap dealer positions, in relation to the WTI crude oil price. As you can also see, I made som comments:

There are two distinct strategy changes in the BigBank&Oil trading pattern occuring first in september 2014 when they stopped buying the price decline, and secondly in march 2015 when the actively intervened and started buying again at $40-$45 range. Of course these might mean nothing, but it seems that they for some reason in late september decided to abandon their previous strategy and move the oil price target range from $80-$100 to $40-$60, where they will probably keep it from now on until further notice …

It’s also interesting to notice that since they had such a huge short position to begin with they’ve pocketed a staggering $30 billion in profits since july 2014 of which $8 billion is realized and the rest is still on the books! On April 14 they were still short 377 thousand contracts, so the certainly don’t believe that the price is going up anytime shortly …

Marianne Macy of Inifinite Energy Magazine has done an extensive interview with Tom Darden of Cherokee Fund and Industrial Heat.

Some qoutes that is of great value when analyzing the business and personal side of the Darden / Rossi relationship:

Darden:

Oh, yeah. I’ve been the primary funder. I think there probably are a lot of people out there like me. Clearly there are. You read in the newspaper about Bill Gates

…

We’ve seen a number of tests and we’ve had a lot of people looking at tests. Of course outsiders have looked at
tests. I think particularly the transmutation data is very compelling. I felt very good about that, better than any outlet of test data I’d seen. We’re not interested in or insistent upon perfection from a scientist. What I mean by that is, stuff might work. Stuff might not work sometimes. I don’t find failure to be very depressing. As I said in my talk, I’m a pilot; if you see any airplane fly, then airplanes fly. If the next time an airplane takes off it crashes, you don’t say, “Airplanes don’t fly.” You might say “That airplane no longer flies” or “Often airplanes don’t fly.” But you would say, “Airplanes fly.

…

We’ve seen some really good stuff. We want to support
Andrea in his research however we best can.

…

He is very rapid at iterating. He is constantly coming up with new things, “Try this. Try this.” I think that’s a good thing. I like that attribute. I think it’s society’s problem to say to someone like that, “Ok, stop. Just work on this. Make a hundred things like this and let’s finalize something.” Well, it shouldn’t be like that. He should be able to do what he needs to do.

…

Rossi is a smart guy. The thing I’ve always been interested
in Andrea is how intensely theoretical he is. I’m not smart
enough to know what theories are right. People have a visualization
of things they can’t see. I have no earthy idea if
what they are seeing is correct. I had assumed he was more
of an experimenter, a tinkerer, trying this and this and this,
in more of a random fashion. But not at all. He is laser like
in his attention He is very theoretical, very knowledgeable.
He’s hard working and driven and we’re pleased with the
investment. In any given setting if you are sitting with
Andrea Rossi and there’s a down moment, in most of those
situations he’ll be reading a physics book or physics paper.
At any given moment he has five minutes between when he
is doing that and doing that he’ll be sitting there reading.
People see him like that in photos and think it’s staged. It’s
not!

…

Here is the downloadable pdf:  DardenInterview

Mats Lewan article in Ny Teknik:

Link to E-CatWorld article

Consider these quotes in their application for the price …

Ulrika Björkstén have followed the cold fusion research since 1989 when the American / British chemists Fleichmann and Pons claimed that they managed to produce excess energy by using cold fusion , and therefore had a long experience of the recurring scams in this area.

…

We have put us into the natural background of cold fusion and able to show that there is no coverage for Andrea Rossi’s claims , as soon as may be likened to a modern alchemy.

 

What recurring scams and what natural background of cold fusion?

The important question, I suppose, is if they really believe it themselves.

If that is the case, it “only” shows a monumental ignorance and stupidity. Tax funded of course, allthough that is not the first time.

Much worse is, if they are playing an agenda. As Marcus Hansson so obviously implies that Mats Lewan is doing in Ny Teknik… That would be close to criminal.

Maybe Ulrika Björksten herself describes best what it is all about, as I earlier quoted from an inteview with her:

What would you most like to win the gold shovel or the Nobel Prize in chemistry?

– Because I am a journalist of course I say the gold shovel.

Enough said.

http://fgj.storage.googleapis.com/riksradio_fusion.pdf

Hmmm. The really long view investor Warren Buffett, close friend of Bill Gates, is exiting a HUGE position in Exxon (XOM). Anyone surprised?

Berkshire was Exxon’s sixth-largest shareholder before liquidating its position, and the stake counted as the eighth-largest (3.7%) in the portfolio run by Buffett and lieutenants Todd Combs and Ted Weschler. The firm also exited its remainingConocoPhillips COP -0.59% position, which it had been cutting back for the past several years and amounted to just 471,994 by Sept. 30, less than 0.1% of the Berkshire stock portfolio.

According to analysts at Bespoke Investment Group  it looks as if the Big Banks are not only shorting oil but the whole energy sector…

As you might remember I noticed that within minutes after the Lugano Report was realeased it was downloaded by an IP-number owned by Blackrock.

Today I got this link from a reader to a report published by Blackrock as early as june 2012. They obviously have been following Rossi and the E-cat closely since the start. Are you surprised?

Well I’m actually a little bit surprised that they are so open about it. But then again, the Big Banks short position in oil is public domain on cftc.gov. Problem is, very few are listening…  (click on the quote to open the Blacrock shale/energy report)

We are closely following start-ups experimenting with new technologies such as low-energy nuclear reaction and fusion. If successful, these efforts could completely change the current status quo and hurt traditional energy producers. It is worth watching this space. People tend to overestimate what can be done in a year, but underestimate what can happen in a decade. …

 

LENR runaway reaction during live youtube feed. This is science of tomorrow happening as we speek…

I’m honored to see that Mats Lewan has chosen to cover my hypothesis on the influence of LENR on the oilprice.

Here is a link to the Mats Lewan article.

Here is a link to my original Oilprice.com article from March 7th, 2013.

I also put together a longer term chart of the S&P 500 index vs. Oil. It’s kind of fun to look at it in real numbers…

allthough a logscale might be more relevant…

CFTC.GOV CoT data from December 16 reveales that while WTI oil went from $68 to $55 the big banks and oil companies were among the sellers. During the two week period from Dec. 2 to Dec. 16 they increased their already massive short position by ~40,000 contracts to  a ~380,000 contract short position. A more than 10% increase in two weeks…

Obviously they believe the price will continue to plunge. A lot…

Why do they believe that? Is a relevant question I suppose.

Well, there are a myriad of explanations in both fringe and mainstream media. Some believe it’s a demand problem, and others that it’s a supply problem. Some resort to different types of geopolitical conspiracy theories, either punishment of Putin or US shale/other high cost low grade oil.

The only fact is of course that the Saudis will aim towards and succeed to increase market share since their oil is by far the cheapest. They will still make money at a $10 oilprice. No one else will. It’s only a logical business strategy.

But. There is one graph that shows more than anything what is happening. The complete decoupling of stocks and oil. In the last debt crisis of 08/09 both oil and stocks plunged. Now the “hockey stick” of R2k vs. oil is almost unbelievable… (+84% since the Lugano Report). And… Look at the timing. Something very real did happen around Oct. 8. What could that be except for the Lugano Report? I’m still looking for a plausible alternative explanations with THAT kind of timing… As an example the Saudi supply position of continued production has been on since June.

Russell 2000 index relative Oil price (IWM/USO)

As I said before. Energy as a scarce and expensive commodity is history. This fact will accelarate growth in all areas except for in the energy commodities per se. Actually we will in the future consume much more energy, so even most energy companies will benefit, especially Big Oil that have been prepared for this change since several years.

Look at the chart below to see what I mean. XLE (Energy companies) is up 50% compared to oil since the Lugano Report. It’s not +84% as the R2k as a whole, but nevertheless.

This future increase in energy consumption manifests itself in that the utility companies are among top performing indexes (XLU) gaining +87% compared to oil since the Lugano report.

The losers will of course be the owners of the large oil fields (which is as you know by now not BigOil anymore), but mostly nations and oligarchs/kings/rulers of diverse violent origins around the globe. This is clearly noted in the performance of currencies of nations like Russia, Nigeria, Venezuela, etc. However the people of these nations will benefit in the long run since most necessities of life will become cheaper everywhere.

COP=2.58 by boiling water with an E-Cat. My prediction is that from now on we will very quickly see multiple replications worldwide. Here is a translation of the replication report (Lugano-Confirmed) and you can read the full story on E-Catworld.

Living room setup!

Also, I really would like to share this excellent summary on the oil business affairs with a lot of good links by “Ian Walker” in a comment on CNBC.COM

This is a Black Swan Event!

Did none of you notice Big Oil have sold their Oil Fields since September 2011?

Let me repeat that:

Big Oil sold their oil fields.

And again for the stupid:

Big Oil sold their oil fields.

It is part of your due diligence to find out what the big players are doing.

Do a Google search for any oil company name and the phrase “Oil field” and the words divest or sell. You can see for yourself.

You will see the following evidence:

Shell has been on a massive divestment strategy on its oil field assets, from Africa to the Far East since September 2011, though as it was already tracking the Black Swan and has a department specifically tasked with watching this particular Black Swan develop, it knew before the others, it just speeded up its divestment of oil fields as the Black Swan became more visible.

http://www.thisdaylive.com/art…

http://www.hydrocarbons-techno…

http://www.ft.com/cms/s/0/9754…

http://www.telegraph.co.uk/fin…

They accelerated the sales of their oil fields as a certain report from the town of Lugano in Switzerland started doing the rounds in the scientific circles in June July of 2014 (more later 😉 )

http://www.ibtimes.co.uk/shell…

Other Fossil Fuel companies on a divestment strategy since September 2011 include BP who sold their stakes in fields in the North Sea, Russia, the Arctic and the Gulf to name but a few, and not even batting an eyelid about being refused license to buy future assets in the Gulf.

http://www.bp.com/en/global/co…

http://www.ogj.com/articles/20…

http://www.bbc.co.uk/news/busi…

http://www.bp.com/genericartic…

http://www.bp.com/genericartic…

http://indrus.in/articles/2012…

http://www.forbes.com/sites/ma…

Connoco

http://www.nasdaq.com/article/…

http://www.bidnessetc.com/2566…

http://online.wsj.com/articles…

http://www.fool.com/investing/…

ExxonMobil

http://www.thestar.com.my/busi…

http://www.foxnews.com/world/2…

http://www.newsystocks.com/New…

http://www.reuters.com/article…

Even the pipeline parts and refinery companies joined the rush to divest the fossil fuel business.

http://dcnonl.com/nw/32627/cb

http://online.wsj.com/article/…

Some are trying to cover their strategy and the risk by divesting half of the asset others are just cashing in their chips.

http://www.digitaljournal.com/…

http://www.linkedin.com/groups…

http://in.reuters.com/article/…

I could fill this page with how many oil fields Big Oil has dropped since September 2011.

Big Oil is in the Oil Business they still need oil for their oil refineries and business so what have they been doing to ensure supply?

They have been taking out (1)options to lease on (2)US fraking fields and Canadian tar sands.

Note that (1)”options to lease” They are renting. They have stopped owning and rent instead. You rent/lease an asset rather than buy it when you know the asset is about to take a big hit. That way those who own the asset bare the cost.

And that second part the assets they are leasing are based in the (2)”US fraking fields and Canadian tar sands” you move to a more expensive supplier and out of a cheaper third world asset when you know the asset is about to experience social unrest and disruption. The kind of disruption that comes with say a massive drop in the value of an asset they were relying on.

If big oil thinks oil has no future, why do you think it has?

So what happened in 2011?

A little known man called Andrea Rossi demonstrated in front of an audience, including representatives from Big Oil, such Shell, a working LENR, that was then tested and bought up by a 2 Billion Dollar US investment corporation.

That version was just the equivalent of the Wright Flyer 1, it would take a while for the technology to reach market. Few in the mass media or the major scientists believed the Wright brothers had a heavier than air flying machine until years after the first successful flight at Kitty Hawk.

http://books.google.co.uk/book…

Who is in the Market?

Rossi is not the only person working on LENR there are a dozen companies now involved in the race to market including the likes of Toyota, Mitsubishi and St Microelectronics as well as companies based at research facilities at Stanford, Missouri University and MIT, ENEA in Italy and LENR research taking place in the US Navy NASA and Boeing to name but a few a conference on LENR will take place at Oxford University next month but the company that bought Andrea Rossi’s IP; Cherokee Investment Corp’s Industrial Heat are by far and away the market leaders. With a CE certificated industrial product already working at an undisclosed customer’s site and negotiations with the Chinese Government for a mass production facility. And already into their third or fourth iteration of the reactor design.

Then in early October scientists working for Elforsk (The Swedish national energy research facility) and the Swedish Royal Academy of Science, yes the one that chooses people for the Nobel prizes, verified the reactor worked and produced energy levels of a nuclear level. The Report was published on the Elforsks own site and the University of Bologna and is available via Google Scholar among

others:

http://amsacta.unibo.it/4084/1…

Now the Lugano report has been independently replicated and verified by Russian physicist Alexander G. Parkhomov of the People’s Friendship University in Moscow, BRICS ranking 82nd in the world.

https://docviewer.yandex.com/?…

FOLLOW THE MONEY!

So what did Big Oil do with all that money they got from selling off their Oil Fields? You can see the amounts involved in the links above.

http://oilprice.com/Finance/in…

Essentially the oil companies gave the money to the merchant banks, with a nod and a wink and maybe who knows, a soon to be shredded report, who took the money from the sale of the oil fields and put it into a massive short on the value of oil.

Did no one notice that oil stabilized around 100 to 110 and despite conflicts, economic downturns and strife did not move from that position? Did that not give you all a clue a big player(s) were taking a huge position?

Let me make this clear; over a year ago they took a massive bet against oil. It is there in the commitment of traders report.

They stopped rolling over the Shorts in October, though some started in June when the Lugano report started doing the rounds in the scientific community. That is what the glut is, hundreds of oil tankers full with oil nobody wants, over bought by a market that believed the hype, that oil is forever, it can only go up! So drill baby drill! Where have we heard that before? It is Bubble talk.

This is the moment on the oil futures market when Sweden’s Elforsk announced that the E-Cat had been verified, see for your self the effect on the market:

http://www.sifferkoll.se/siffe…

This is the track on the Oil Market when Blackrock/Barclays downloaded the leaked report:

http://www.sifferkoll.se/siffe…

And they all made a killing in the tens of billions of dollars range on the fools left holding the bag in oil.

This market will not touch bottom until 90 Days after the publication of the Lugano report when all the 90 day shorts have all run through.

Bill Gates did his due diligence in early November, seeing the Oil market crash for what it was a Black Swan. When the richest man in the world starts losing money he wants to know why. He got an emergency briefing from ENEA in Frascati; La Stampa broke the story:

http://www.lastampa.it/2014/11…

If you do not understand Italian, here is the University Verona explaining why Bill Gates was there.

http://www.univrmagazine.it/si…

It now appears Bill Gates was following LENR for years.
http://hardware.slashdot.org/s…

At that moment Bill Gates realised it was a bubble in the oil futures market; based on how many people didn’t do their due diligence, to find out what the big players were doing or even the basics like checking the Commitment of Traders reports regularly.

A bubble, that LENR has now popped.

BIg Oil are not going to lose out on this, though their shareholders might. They have their money in the merchant banks, which took out the short. I am sure there was a beneficial arrangement, question is, who for?

Big Oil’s Shareholders?

Or those who invested in the banking arm of Big Oil?

We all know how those bonuses work.

This then is:

THE END OF THE FOSSIL FUEL AGE.

Saudi Arabia is placing itself, strategically, for decades of managed decline in the Oil industry, where a true market will once again assert itself. So Saudi Arabia knows it has to drop prices to the minimum and take over a maximum share of the Oil market both to slow the uptake of LENR and to maximise its profits in a declining market.

Saudi Arabia realizes OPEC is dead so it wants to undercut and kill off as many of its competitors as it can now; by locking in customers on one year contracts that substantially undercut competitors. The market for oil is now red in tooth and claw, it is all now about managing the decline, while the crows pick the bones of the Fossil Fuel Dinosaur.

Oil will still have a market as a precursor chemical for things such as plastics and as a lubricant but essentially oil will be about as valuable as hay within 30 years.

On the matter of those left holding the bag in oil field ownership:

Bankruptcies and fire sales of fields will be snapped up by the oil companies who put their money from selling their oil fields in the bank and enabled the merchant banks to short oil. They still have their money those who are bankrupted will need to be “Rescued”

Those fields will then be run into the ground. Up until now an oil well was pumped carefully to maximise its long term output. Post LENR it will all be about market share and the basic Walmart strategy of “Stack it high sell it cheap!” If there is only 30 years of Oil as fuel probably Saudi Arabia and few other easy access wells will serve the world for that long. The higher the price the faster LENR will be taken up, it is simple supply and demand.

A prediction: 30 Dollar Oil within a year and 10 Dollar Oil long term.

On the matter of 10 Dollar long term I make these assumptions:

1) Post LENR taking up all the energy market, by about 2045, though it could be as short as 2020, Fossil Fuels will be dead other than, steam locomotives and their equivalent of a few fossil fuel vintage cars, read museum example pieces of anything with petrol/diesel engine.

2) Taking into account that oil is used for lubricants and as a precursor chemical for the chemical industries such as plastics, that market will probably still exist but it will be in an LENR enabled age where competitors will be able to use other sources for such precursor chemicals and lubricants, but also where the cost of oil extraction and refining will also be decreased by LENR enabled pumping and refining.

Kind Regards walker

In this Zerohedge post Goldman Sachs explains exactly what I’ve been talking about for some time now. They call it a “supply driven bear market”…

Yep. That is what it is when the Saudis realize that the price they get for their oil today is the best they will ever get…

Here are som interesting quotes from the report. Only one piece of information missing. Why is it happening and why is it happening now? You know the answer…

The New Oil Order: Finding a new equilibrium

… We believe the oil market is experiencing a cost re-basement which makes determining when the market is oversold extremely difficult, as the price at which rebalancing occurs is now a moving target to the downside. …

… Slowing the rebalancing and creating further downside risk is a very strong consensus view that this pull back is temporary …

… It is precisely this strong view for a rebound in prices and the behavior it creates, that not only suggests that oil prices can go lower for longer, but also that the new normal is far lower than we thought …

… Although the spot price is only at $58/bbl, the 5-year forward oil price is already lower today at $69/bbl than it was in December 2008 ($70.50/bbl) when spot WTI prices fell to $33/bbl. …

… Now it is all working in reverse as the market searches for a new equilibrium – lower oil prices, weaker commodity currencies, lower material and oil service costs and increased efficiency are all reinforcing to the downside. …

… it is in OPEC’s interest to maximize revenue through volumes, …

(by Jeffrey R. Currie, global head of Commodities
Research in the Global Investment
Research (GIR) Division at Goldman Sachs, New York)

This is what the black swan look like today. Russell 2000 vs. Oil since 2011… I believe this graph shows clearly that there was a fundamntal change in the market at the time when the Lugano Report was published. Even more so, than the oil price per se, wich compared to stock has been trading within range for several years up to more or less exactly that point. Enjoy! This is good news!

A reasonable scenario for the big banks (JP Morgan, Goldman Sachs, etc) could be to unwind their massively short postion in oil entered during 2011. Having a quick look at the CFTC.GOV COT-data reveals some profit taking from the last couple of months, but the short position is still very much alive.

So if you are curious to know who’s making profits during the oil plunge and who will continue to do so on it’s way down, there is your answer.

Of course Big Oil and Big Banks know about LENR. The’ve actually known for decades (as this BP / Amoco report from 1994 shows), and they have been positioned since 2011. Now it’s turning into reality.