USA; World Champions at Climate Hypocrisy & World Champions of Global Oil Production – US Banks Pull the Plug on Climate Activism – Climate and Energy Facts; Who Needs Them? - [01-21-25]

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BOOM EDITORIAL THIS WEEK

WORLD CHAMPION OF CLIMATE HYPOCRISY – THE USA. In early January, just two short weeks ago, BOOM wrote a Review of Global Energy since the general acceptance of “Global Warming” in 1988. BOOM concluded, paradoxically, that the major beneficiaries of the Climate Change “emergency” narrative were the conventional energy industries that produce oil, coal and gas. Record revenues and record profits were evident in the world’s major energy companies.

From BOOM’s Editorial on January 5, 2025: “Over the last 35 years, Global consumption of Coal and Gas has DOUBLED. Global consumption of Oil has increased by 60%; CO₂ emissions have also DOUBLED while Global GDP has TRIPLED in size.”

And …. “The global oil and gas industry’s profits in 2022 jumped to some $4tn from an average of $1.5tn in recent years, according to the head of the International Energy Agency (IEA), Fatih Birol.”

Ever rising production and consumption of Oil, Gas, and Coal is the conclusion along with ever expanding economic activity as measured by Global GDP. The so-called “transition” from conventional energy sources to alternative, renewable sources of energy is clearly a failure at this juncture but very few people want to look at the stated facts and admit defeat. If they are presented with the facts, they will usually say something like “it’s a slow process”.

BOOM asks “how slow”? Here are the graphs for CO₂ emissions and Fossil Fuel Consumption since 1965.

From BOOM’s Editorial focused on the Coal Industry and dated December 29^th 2024 –

“Consumption of coal is at record high levels while the prices for coal are at record high levels. China leads the way in coal consumption by currently building the equivalent of 220 new coal fired power stations.”

OCCAM’S RAZOR AND CUI BONO. Using Occam’s Razor (a simple explanation may provide a better answer than a complex one) and Cui Bono (who has benefited?), the key questions raised by BOOM are these:

• Has the Climate Change “emergency” been purposefully created by the conventional energy companies to boost their revenues and profits?

• Did they create the entire new “alternative” energy sector de novo knowing that it would consume vast amounts of conventional energy in building solar panels, windmills, nuclear power stations, pumped hydro storage systems, expanded electricity distribution networks, electric cars and trucks and, last but not least, massive battery plants?

BOOM suspects that this may be the case. The plan has certainly benefited the hydrocarbon industries enormously over the last 35 years with huge increases in revenues and profits driven by a large increase in Global GDP. GLOBAL GDP HAS TRIPLED

THE WORLD CHAMPION OF GLOBAL OIL PRODUCTION IS THE USA. This week BOOM looked at Global Oil Production. Again, disturbing facts are revealed – if you look hard enough.

The Biden Presidency and the US Democratic Party have (publicly) been strongly committed to lowering fossil fuel production and consumption for many years. That statement goes without saying, without qualification. This is an article of faith in the Left of US and Global politics.

So what does the US Government really do other than make bold political statements which could easily be described more accurately as lies? The facts of the matter are embarrassing. And that is why you will not see the facts of energy production and consumption discussed in the mainstream media, only here at BOOM. Let’s examine the embarrassing data on Oil produdction.

The US Energy Information Administration (EIA) is a US Government organisation. Its website is a dot gov one – EIA.Gov – which is a URL that can only indicate US Government ownership.

From the Website – QUOTE: “Our website, EIA.gov, is the primary communication channel for the U.S. Energy Information Administration (EIA) and serves as the agency’s worldwide energy information point of contact for Our

• Federal, state, and local governments

• Academic and research communities

• Businesses and industry

• Foreign governments and international organizations

• News media

• Financial institutionsGeneral public

EIA has forged a tradition of excellence for its public website, thanks to a solid vision for a high-quality presence on the web and hard work throughout the agency. When EIA.gov launched on July 1, 1995, EIA became the first agency within the U.S. Department of Energy to venture onto the Internet.”

So, BOOM assumes that the EIA reflects the outcome of energy policies of the US government over the last 35 years and over the last four years of the Biden Presidency and Democrat Party Government. Let’s look at the facts of the matter as reported by the EIA.

EIA released a report titled “Today in Energy” on the December 26, 2024. It highlighted an article from March 11, 2024. The sub title revealed the ugly truth. “United States produces more crude oil than any country, ever”

The very first diagram showed that the United States overtook Saudi Arabia and Russia in 2018 as the Number One producer of Crude Oil and Condensates and has been steadily increasing its lead ever since.

The Report goes on to say: [Ed: this will be shocking for those who are concerned about tackling the issue of global Fossil Fuel production.] Quote: “The United States produced more crude oil than any nation at any time, according to our International Energy Statistics, for the past six years in a row. Crude oil production in the United States, including condensate, averaged 12.9 million barrels per day (b/d) in 2023, breaking the previous U.S. and global record of 12.3 million b/d, set in 2019. Average monthly U.S. crude oil production established a monthly record high in December 2023 at more than 13.3 million b/d.

The crude oil production record in the United States in 2023 is unlikely to be broken in any other country in the near term because no other country has reached production capacity of 13.0 million b/d. Saudi Arabia’s state-owned Saudi Aramco recently scrapped plans to increase production capacity to 13.0 million b/d by 2027.

Together, the United States, Russia, and Saudi Arabia accounted for 40% (32.8 million b/d) of global oil production in 2023. These three countries have produced more oil than any others since 1971 (counting production in the Russian Federation of the Soviet Union prior to 1991), although the top spot has shifted among them over the past five decades.

By comparison, the next three largest producing countries—Canada, Iraq, and China—combined produced 13.1 million b/d in 2023, only slightly more than what was produced in the United States alone. That record production by the USA must be put into Global perspective. And the EIA Report does that with this graphic.

Quote: “After peaking at 9.6 million b/d in 1970, annual U.S. crude oil production flattened and then generally declined for decades to a low of 5.0 million b/d in 2008. Crude oil production in the United States began increasing again in 2009, as producers increasingly applied hydraulic fracturing and horizontal drilling techniques, and has increased steadily since.

The only exception to U.S. production growth since 2009 was in 2020 and 2021, when demand and prices decreased because of the economic effects of the COVID-19 pandemic. In recent years, crude oil production in the Permian Basin (in western Texas and eastern New Mexico) drove the increases in total crude oil and natural gas production in the United States.”

Despite much rhetoric from the political class in the United States demanding the end of the Oil industry, the facts reveal that the opposite is the case. The US is now the largest National producer of Oil and Oil Condensates on the planet and it is steadily growing production year by year – even before Donald Trump is sworn into office.

So, BOOM asks the ugly question — who is funding the expansion of Oil production in the USA? Of course, that would be (predominantly) US shareholders and US banks. So what has been happening in the US banking industry? The facts are, again, surprising. From BOOM Editorial February 11, 2024:

"HAVE THE MAJOR US BANKS UNLAWFULLY ABANDONED THE US GOVERNMENT, THEIR SHAREHOLDERS AND SOME OF THEIR MAJOR CUSTOMERS?" Quote: “Some of the major US banks, the Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo have joined the UN-organised Net-Zero Banking Alliance (NZBA). The CEO’s of each bank have signed the 'Commitment Statement' as a pre-condition. In the 'Commitment Statement', they have agreed to the following:

“We will align our business strategy to be consistent with and contribute to individuals’ needs and society’s goals, as expressed in the Sustainable Development Goals, the Paris Climate Agreement, and relevant national and regional frameworks.” In other words, early last year, the major US banks decided to abide by the agenda and oversight of a United Nations organisation – the Net Zero Banking Alliance — rather than the US Government. At the time, BOOM had this to say:

“In BOOM’s view, this is a repudiation of the US Government by these companies, a slap in the face to Congress and the Senate. This may be unlawful. The CEO’s have decided that they will be answerable not to their shareholders and not to their National government but to a group of unelected officials who meet at the UN Headquarters.”

But this issue is a lot more complicated than that. BOOM went on to say, “And, by the way, BOOM is not sure what a “framework” is. When bankers abandon their government, and take a separate road, beware.

Further, they have agreed to “proactively and responsibly consult, engage and partner with relevant stakeholders to achieve society’s goals.” The term “stakeholders” is used frequently by Klaus Schwab of the World Economic Forum. It is clearly code for corporate bodies and not individual citizens of nations. And, by the way, BOOM is not sure what the word “relevant” means in this context. And which “society” are they referring to here? It is clearly not a reference to their society of the United States nation.

Then they (the bankers) agreed to this. “We will implement our commitment to these Principles through effective governance and a culture of responsible banking”.

And to “be transparent about and accountable for our positive and negative impacts and our contribution to society’s goal”.

This begs the question – Governance by whom? The unelected United Nations and/or the World Economic Forum? BOOM would hope that these companies are accountable and responsible entities – responsible to their shareholders and to their national Government.”

BOOM went on to discuss more aspects of the arrangement:

“BOOM is mystified here. What was the “temperature” they refer to as “pre-industrial”? And the “temperature” of what region on Earth? This appears to be Virtue Signalling gone mad. And what (exactly) is “the best scientific knowledge”? And “Which credible and well-recognised sources”? What is meant by “negative emissions technologies”?

Then BOOM’s editorial considers the very serious ramifications of this agreement:

Quote: “BOOM assumes that this means the banks will (somehow) separate their Greenhouse Gas intensive and emitting customers from their non-GHG emitting customers? Remember, all human beings emit carbon dioxide when they exhale. On what basis will this be done to stay within applicable US Laws?”

“Surely customers who are discriminated against on this basis can take legal action to defend themselves? Have the various CEOs’ generated a contingent liability here? Contingent liabilities are liabilities that may be incurred by an entity depending on the outcome of an uncertain future event.”

“Who (exactly) is UNEP FI (?) And who are they to set “banking guidelines”? What is the so-called “UN Race to Zero criteria”? Are the CEO’s binding their Boards here to a nebulous “review of transition strategy”? Research reveals that UNEP FI is the United Nations Environment Programme Finance Initiative (UNEP FI). “What right (exactly) do the CEO’s have to bind their companies to an “initiative” of the United Nations? As far as BOOM is aware, the UN can only reach agreements with National Governments, not individual corporations.”

And, “What (exactly) does this phrase mean: “in line with science”? Which “science” are they referring to here? Is it only science pre-approved by the IPCC and/or the UN? Is other science to be banned?” Then, “BOOM wonders: What (exactly) is meant by a credible, safe, and high-quality climate solution?” … “Is “climate science” separate from other science?”

“The UNEP FI website summarises the “Commitment” made by the bank CEO’s. Again, BOOM asks the question: Are these lawful or unlawful under US State and National Laws?”

“There is also a document on that website that describes “Guidelines for Climate Target Setting for Banks”. However, the document is only available for download if you provide your full name, job title, organisation, email address, region and country. And you must agree to receive their newsletters and to accept their “data privacy statement” – which is not available.

There is also an “NZBA Intermediate Target Disclosure Checklist” which is publicly available. This is clearly a set of Governance Guidelines set by the United Nations that the banks must agree to. Again, it is an agreement made between banking companies and the UN. The US Government is not part of the agreement, except in references. The word “government” does not appear in the 9-page document.”

BOOM went on to describe the reaction from America’s Agriculture industry: “BANKS “NET ZERO AGENDA MUST BE STOPPED.” “In response to this, 12 State Agriculture Commissioners have signed a letter to the six US banks mentioned above. The letter notes that this could result in “severe consequences” for farmers. The letter reads: “Achieving net-zero greenhouse gas emissions in agriculture requires a complete overhaul of on-farm infrastructure — one of the goals of the NZBA.”

“This would have a catastrophic impact on our farmers”. Will Hild, the executive director of watchdog group Consumers’ Research, was reported as saying: “Farmers and ranchers are the foundation of our economy and international climate cartels like the NZBA pose nothing less than an existential threat to their future. By forcing ESG, Brian Moynihan and his cohort have driven the cost of doing business for small family farmers and independent ranchers to astronomical heights.”

“The Agriculture officials and Commissioners hit the nail on the head in their letter: — should their misguided climate extremism continue unabated; these megabanks will put our entire food supply in serious jeopardy. I applaud the states for their action, and I look forward to working with them to defend American consumers from this corporate malfeasance.”

CORPORATIONS AND NATION STATES. Last week’s BOOM editorial ended with the words: “The State must stand apart from the interests of its Corporations.” This week, BOOM must now warn Corporations (including banks) NOT to stand against the State were they have been incorporated. They must NOT commit treason against their own National government and the People of their Nation state. That would be a very dangerous pathway to follow for any Corporation.

It looks like the major banks of the United States have seen the wisdom of the warnings issued in early February 2024 by the State Agriculture Commissioners, Consumers’ Research, and by BOOM. Read on:

UPDATE: US Banks Pull The Plug On Climate Activism. The United Nation’s Net Zero Banking Alliance (NZBA) was established in 2021 as a global initiative to influence climate policies in individual Nation states. This alliance of the world’s largest financial institutions was aimed at reducing CO₂ emissions. It hoped to achieve its objectives of achieving Net Zero by changing the lending and investment portfolios of its member banks to Net Zero.

To achieve this lofty goal, the banks in the alliance were actually setting out on a pathway to force their customers towards achieving Net Zero carbon emissions. Many corporate customers would be affected by the banks’ skewed lending. Such a bizarre policy of lending could only have one effect – it would divide all the banks’ customers into different groups depending upon their use of fossil fuels. Highly energy-intensive industries would be adversely affected if this were to proceed to its logical conclusion. They would be sacrificed by their banks upon an altar of Virtue Signalling and, taken to its most rabid conclusion, their contributions to complex economies would come to an end.

This could only result in the eventual failure of companies involved in the production of steel, iron, cement, concrete, food, fertilisers, building construction, transport, heating and others all of which are vitally important for human life but have higher CO₂ emissions. Initially, 43 of the world’s largest banking groups joined the NZBA, including, for example, Barclays, Citigroup, Bank of America, Goldman Sachs, JP Morgan, Wells Fargo, HSBC, Santander, Morgan Stanley, Credit Suisse. And since then, the number of banks in NZBA has grown to 140 in 44 countries.

THE BANKS ARE NOW LEAVING. However, the growth of the NZBA has significantly stalled and several major US banks have announced that they are leaving the association altogether. BOOM assumes that their legal departments have listened to the State Agriculture Commissioners and read the BOOM editorial from February last year and then advised great caution in regard to penalising customer companies in such an arbitrary fashion. Wells Fargo, Goldman Sachs, Citigroup, Bank of America, and Morgan Stanley have all announced their withdrawal from the NZBA. BOOM expects many others to follow, if not all, in the fullness of time and legal challenges.

ANTI-TRUST LAW. ALL BANKS must eventually abandon their membership of the Net Zero Banking Alliance (NZBA) in BOOM’s opinion. And not only in the USA but in ALL nations. Why? Because membership in such an “alliance” can be proved in legal challenges to be similar to forming a Banking Monopoly which discriminates against customers in an unfair manner.

In the United States, antitrust law is a collection of mainly federal laws that govern the conduct and organisation of businesses in order to promote economic competition and prevent unjustified monopolies. Federal antitrust laws provide for both civil and criminal enforcement. Civil antitrust enforcement occurs through lawsuits filed by the Federal Trade Commission (FTC), the Antitrust Division of the US Department of Justice, and private parties who have been harmed by an antitrust violation.

Additionally, US State governments may also enforce their own antitrust laws, which generally mirror federal antitrust laws, regarding commerce occurring solely within their own state’s borders. In December 2024, Texas, along with ten other states, sued major investment firms BlackRock and Vanguard, accusing them of violating US antitrust law. Most other advanced economy nations have similar laws to prevent monopolisations and unfair practices.

· Source Material: BOOM Editorial February 11, 2024: Recommended Reading:

BOOM Finance and Economics 11th February 2024 -- a Global Review

COMING NEXT:

• Letter from Great Britain – HOUSING CRISIS 2025 - Saturday, January 25, 2025

• BOOM Global Financial Review, Tuesday, January 28, 2025

In economics, things work until they don’t. Make your conclusions and do research. BOOM does not offer investment advice.

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BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY: LOANS CREATE DEPOSITS — this is how almost all new money is created in the economy (by commercial banks making loans). https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy. Watch the short 15-minute video and see Professor Richard Werner brilliantly explaining how global banking systems work.

In 2014, Richard Werner provided the first empirical evidence that banks create credit out of thin air. They do this whenever they issue a loan or, more specifically, purchase a promissory note. This is a walk-through of exactly how they do it.

Many economists are unaware of this and even ignore the banking & finance sectors in their econometric models. Prof Richard Werner explains how things are going now with CBDCs:

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