by Wayne Madsen, The Wayne Madsen Report
John Brennan’s long familiarity with Saudi Arabia, owing to the time he spent there as the CIA station chief in Riyadh in the 1990s and his knowledge of Saudi oil operations, has paid off. WMR has learned that Brennan’s agents inside Saudi Aramco convinced the firm’s management and the Saudi Oil Ministry to begin fracking operations to stimulate production in Saudi Arabia’s oldest oil fields. By pumping salt water into older wells, some at a depth of 3 to 6 thousand feet, an inordinate amount of pressure was built up. The CIA’s oil industry implants knew what would occur when the fracking operations began. Due to the dangerously high water pressure, the Saudis were forced continuously pump oil until the pressure became equalized. That process is continuing. If the Saudis ceased pumping oil, they would permanently lose the wells to salt water contamination. In the current “pump it or lose it” situation, the Saudis are forced to pump at a rate that may take up to 5 years before they can slow down production rates.
The net result of the CIA-inspired fracking operations, which the Saudis were warned not to pursue by petroleum engineers working for some foreign-based firms like Schlumberger, is that there will be an oil supply glut for the next 5 years. The glut will be followed by a reduction in Saudi oil production unless new oil fields are brought on line. There is now a major push by U.S. and Canadian oil companies to bring the Keystone XL pipeline from Canada to the United States to offset the expected sharp rise in oil prices in five years.
The CIA operation to frack Middle Eastern oil fields was not only limited to Saudi Arabia. WMR has learned from oil industry sources that similar fracking caused over production problems in Kuwait and Iraq.
The result of the sudden decline in oil prices has resulted in heavy damage to the economies of the CIA-targeted countries of Russia, Iran, and Venezuela. Brennan and his economic warfare operatives banked on the Saudi over-production to harm the economies of all three countries and the CIA has not been disappointed. The CIA figures that the governments of Vladimir Putin in Russia, Ayatollah Ali Khamenei in Iran, and Nicolas Maduro in Venezuela will have long since collapsed and been replaced by pro-Western regimes within 5 years. Already, from his base in Switzerland, exiled Russian tax evader billionaire Mikhail Khodorkovsky has called for Putin’s overthrow and even his assassination. Meanwhile, the U.S. Congress and the Obama administration have taken cues from the CIA to impose devastating economic sanctions on both Russia and Venezuela. Similar congressional legislation to increase sanctions on Iran is pending.
Russia has been harmed the most by the CIA’s Saudi oil production scheme. The Russian ruble fell 56 percent in value against the U.S. dollar while Russian interest rates climbed to 17 percent. The price of shares of Russia’s largest lending bank, Sberbank, fell 18 percent. Although the Russian economic collapse has resulted in financial ripples around the world, with Austrian and French banks losing their stock values and the value of the Polish zloty and Hungarian forint falling against the dollar, the Obama administration says that there will be no easing on economic sanctions imposed on Russia over Ukraine. Obama has put the investments of American holders of Russian bonds in dire jeopardy.
The Pacific Investment Management Company’s (PEBIX) Emerging Markets Bond Fund, which holds over $800 million in Russian bonds, has lost almost 8 percent in value in the past few weeks.
Russian Central Bank vice chairman Sergei Shvetsov said, “What is happening is a nightmare that we could not even have imagined a year ago.”
Meanwhile, basic staples in Venezuela, including cooking oil, rice, and corn flour, are becoming hard to obtain. The U.S. dollar has jumped 1700 percent in value against the Venezuelan bolivar on the black market. The CIA is using the financial collapse to push for an undemocratic overthrow of the Venezuelan government.
Iran, which has been under punitive Western economic sanctions for a number of years over its nuclear power program, is probably best able to weather the storm. Iran has built up a rather impressive domestic food production, telecommunications, and oil industry infrastructure to survive the sanctions. However, Iranian President Hassan Rouhani appears very aware of the Saudi role in the conspiracy to drive down oil prices. Rouhani recently said, “The main reason for [the oil price plunge] is [a] political conspiracy by certain countries against the interest of the region and the Islamic world and it is only in the interest of some other countries . . . Iran and people of the region will not forget such conspiracies, or in other words, treachery against the interests of the Muslim world.”
Brennan’s and the CIA’s industrial sabotage of the Saudi and other Middle East oil industries will continue to have far-reaching effects on the world economy. Oil industry insiders fear that the CIA has unleashed something that may deal a devastating blow to the global economy.