60 Minutes Confirms Ed Wallace’s Rants

If you listen to “Wheels with Ed Wallace” as much as Glenn Hunter and I do, you probably don’t have a life. Regardless, when I watched last night’s episode of 60 Minutes, I felt sort of good for Ed, who is featured in D CEO’s January issue. The story pretty much confirmed everything that he’s been ranting about, regarding how the price of oil has been driven by speculation, as opposed to Chinese taxi cab drivers and peak oil. The 60 Minutes piece also makes me wonder if billionaire T. Boone Pickens has wandered too far off the Reality Reservation with his belief that the high price of oil supports his theory that demand for oil has exceeded its supply.


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25 responses to “60 Minutes Confirms Ed Wallace’s Rants”

  1. tom says:

    Boone Pickens has only one agenda – making more money for Boone……Doesn’t make him a bad guy – just be careful drinking too much of his kool aide………….

  2. G$$ says:

    Pickens is all about HIS wallet. He is buying tons of land in the Panhandle that sits on an aquifer and wants to sell the water to Dallas. Then the wind energy scam, has anyone found out how to store the wind energy? I’m with Tom…

  3. JB says:

    I think Bill O’Reilly would be a good place to store wind. Rush Limbaugh seems more likely to break it.

  4. Obama's seat says:

    Is there any truth to the rumor that there’s a windmill farm in the Countdown studio?

  5. wcm says:

    G$$ – I agree Pickens is all about HIS wallet. But, he has owned the vast majority of his land in the panhandle for decades. Regarding the wind, you store it in transformers. The same way water turbines have been storing energy for dozens of years.

  6. uhhhhh says:

    transformers only transfer the electric current from one circuit to another. the only useful way (that I know of) to store electricity is with batteries.

    wind, water, coal, nuclear, whatever generates electricity that is basically used as soon as it is generated.

  7. Don in Austin says:

    Transformers step up or step down voltage, FWIW. As far as I know, wind generated electricity is not stored unless its an individual’s supply source and then batteries are used.

  8. billusa99 says:

    Uhhhh, wcm… Water turbines always turn. They are inside what’s called a hydroelectric dam.

    Wind only blows when there is a pressure differential. Or, when someone makes up stuff about transformers.

  9. Nathan says:

    I don’t understand what the speculators are doing wrong. There’s only so much oil, there are plenty of consumers, so why not speculate a little? It’s a free market right? Just so long as we don’t bail them out when the price of oil takes a dive.

  10. 60 minutes has no idea of what is happening with oil, here tis.

    The top story of the year is that global crude oil production peaked in 2008.

    The media, governments, world leaders, and public should focus on this issue.

    Global crude oil production had been rising briskly until 2004, then plateaued for four years. Because oil producers were extracting at maximum effort to profit from high oil prices, this plateau is a clear indication of Peak Oil.

    Then in August and September of 2008 while oil prices were still very high, global crude oil production fell nearly one million barrels per day, clear evidence of Peak Oil (See Rembrandt Koppelaar, Editor of “Oil Watch Monthly,” December 2008, page 1) http://www.peakoil.nl/wp-content/uploads/2008/12/2008_december_oilwatch_monthly.pdf.

    Peak Oil is now.

    Credit for accurate Peak Oil predictions (within a few years) goes to the following (projected year for peak given in parentheses):

    * Association for the Study of Peak Oil (2007)

    * Rembrandt Koppelaar, Editor of “Oil Watch Monthly” (2008)

    * Tony Eriksen, Oil stock analyst; Samuel Foucher, oil analyst; and Stuart Staniford, Physicist [Wikipedia Oil Megaprojects] (2008)

    * Matthew Simmons, Energy investment banker, (2007)

    * T. Boone Pickens, Oil and gas investor (2007)

    * U.S. Army Corps of Engineers (2005)

    * Kenneth S. Deffeyes, Princeton professor and retired shell geologist (2005)

    * Sam Sam Bakhtiari, Retired Iranian National Oil Company geologist (2005)

    * Chris Skrebowski, Editor of “Petroleum Review” (2010)

    * Sadad Al Husseini, former head of production and exploration, Saudi Aramco (2008)

    * Energy Watch Group in Germany (2006)

    * Fredrik Robelius, Oil analyst and author of “Giant Oil Fields” (2008 to 2018)

    Oil production will now begin to decline terminally.

    Within a year or two, it is likely that oil prices will skyrocket as supply falls below demand. OPEC cuts could exacerbate the gap between supply and demand and drive prices even higher.

    Independent studies indicate that global crude oil production will now decline from 74 million barrels per day to 60 million barrels per day by 2015. During the same time, demand will increase. Oil supplies will be even tighter for the U.S. As oil producing nations consume more and more oil domestically they will export less and less. Because demand is high in China, India, the Middle East, and other oil producing nations, once global oil production begins to decline, demand will always be higher than supply. And since the U.S. represents one fourth of global oil demand, whatever oil we conserve will be consumed elsewhere. Thus, conservation in the U.S. will not slow oil depletion rates significantly.

    Alternatives will not even begin to fill the gap. There is no plan nor capital for a so-called electric economy. And most alternatives yield electric power, but we need liquid fuels for tractors/combines, 18 wheel trucks, trains, ships, and mining equipment. The independent scientists of the Energy Watch Group conclude in a 2007 report titled: “Peak Oil Could Trigger Meltdown of Society:”

    “By 2020, and even more by 2030, global oil supply will be dramatically lower. This will create a supply gap which can hardly be closed by growing contributions from other fossil, nuclear or alternative energy sources in this time frame.”

    With increasing costs for gasoline and diesel, along with declining taxes and declining gasoline tax revenues, states and local governments will eventually have to cut staff and curtail highway maintenance. Eventually, gasoline stations will close, and state and local highway workers won’t be able to get to work. We are facing the collapse of the highways that depend on diesel and gasoline powered trucks for bridge maintenance, culvert cleaning to avoid road washouts, snow plowing, and roadbed and surface repair. When the highways fail, so will the power grid, as highways carry the parts, large transformers, steel for pylons, and high tension cables from great distances. With the highways out, there will be no food coming from far away, and without the power grid virtually nothing modern works, including home heating, pumping of gasoline and diesel, airports, communications, and automated building systems.

    Documented here:

  11. mike pickens says:

    Thank-you Clifford – you speak the truth – the reality of our situation is not pretty. I will read your blog and then make contact with you. My dad has enough money – his heart is in the right place on this deal – it is me that will try to capitalize on peak oil – anyone that is interested in joining me feel free to contact me – [email protected].

  12. Franklin says:

    Excellent write up, very useful.
    I really appreaciate the information.

  13. Ed Wallace says:

    Thanks for the post about my articles. For the life of me I can’t figure out why I was the first to look into this in a serious manner. Because looking for the hard data on oil production, shipments and use by country just wasn’t all that difficult. Certainly there was a logical reason for oil prices to jump in 2005, but production outpaced demand in 2006, 2007 and by large amounts in 2008. Although by then oil demand destruction was well under way due to the high prices.
    We know now that oil demand in the 20 industrialized nations covered by OECD started falling in the first quarter of 2006.
    But the real credit goes to my editors at the Fort Worth Star Telegram and BusinessWeek who backed my reporting and continued running my articles even when ICE Futures, the dark and unregulated exchange where these oil trades are most often made, came after us.
    As for Sixty Minutes, I’m reminded of Steve Kroft’s 1998 piece on the gas additive MTBE getting into our water supplies. I found the government documents on that environmental disaster four years earlier.
    As for Mr. Wirth’s position on Peak Oil, it is coming. However, of those in the know that I’ve talked with–the consensus on the final date for that problem is not universally agreed on. But no one believes it is far off in the future either.
    Your “rantin’ buddy,
    Ed Wallace

  14. Critical Mind says:

    I guess “evil speculators” causing young children to go without oil makes a nice headline and 60 minutes has such an impecable track record of exploring all sides of story (hah!). But read this report, then form an opinion…

  15. Sid Nancy says:

    Ed Rox

  16. Mike says:

    Limited oil supply (gold, oil, you pick it), the price goes up. Got it. But as price escalates, demand slows down. At the same time, alternatives to oil (zirconium, electric, you pick it) gain in supply. In a relatively brief period of time, we put a man on the moon, and decades ago. We send hardware to Mars. Got a hunch, we’ll see the evolution of the fossil fueled car, not only to hybrid, all electric, hydrogen, but nuke. Probably not for twenty years, but so what. It will give my engineering minded daughter something to invent or help create. Hope to God the sky is not falling, but if it is, see you in heaven.

  17. Mark says:

    Ed Wallace, a legend in his own mind.

  18. wcm says:

    Ok, sue me I was wrong about transformers. 🙂

    My point is that if you can make a turbine spin via water or wind, you can generate electricity. I din’t see where a scam was involved.

    billusa99 – since hydroelectric turbines ALWAYS spin, what makes them spin if there is a severe drought and the lake dries up?

  19. Ed (Not Wallace) says:

    Dr. Wirth-

    I find it highly suspicious that you are promoting the idea that we are in “peak oil” when you make your living talking and consulting about peak oil.

    I also find it comical that Mr. Wallace was able to prove your work wrong in under an hour. Your evidence is from people that are trying to profit from peak oil. Try using reputable information.


  20. jmp says:

    The scam is that Boone wants all of us to pay for an energy sourc (Wind) that is not the most reliable. If he wants to do it fine let him spend his own money. Last time I look the water seemed to flow more than the wind blows

  21. lee lee says:


    Ed may be a legend, but it’s not in his own mind it’s in the facts. Jealousy is not a pretty trait.

  22. Larry says:

    Just follow the money:

    Al Gore makes tons of money selling the bogus idea of global warming.

    Tons of folks make money selling the idea of peak oil (like Wirth).

    I respect Ed Wallace because he makes his money peddling information he believes to be true irrespective of whose ox is gored (Pun).
    And he backs up his information with quality research and critical thinking.

    That said, I don’t buy peak oil for the hear future. I DO buy peak CHEAP oil. At some point, we will have to mine shale oil and increase tar sand production and that will cost serious money.

    Our economy is based on cheap energy. Count on a lower standard of living as energy gets ever more expensive. Make sure your kids get a quality education and learn the meaning of hard work; handouts will dry up as the tax base shrinks.

    Tons of folks will be growing victory gardens instead of grass.

  23. HI ED,

    Yes, I am a walking conflict of interest. But I knew about Peak Oil at age 10, and then taught about it for years, and then was terrified when I realized it was really here.

    I was terrified before I put my website together, and I don’t make any money from Peak Oil Associates, rather I loose a lot.

    Total income = a series of speaking engagements in Albany, NY last June, paid transport/per diem and got paid some $500. I spent hundreds of hours because they really did not want to hear what I had to say, and the group wanted me to say what they wanted. Good grief. No one wants to hear about Peak Oil, and people will spend a fortune to get their fortune read, or $50,000 on a new car, but not a dime to learn how to survive this catastrophe.

  24. Rob says:

    The best way to store electricity is to use it to increase potential energy. Pump storage facilities do this in areas that have natural elevations to use for creation of a lake high above a generation station. Not too many areas in west texas that I know of that will work for this. No extra water to put into a lake to evaporate either.
    Best use of this is in Northeast where excess Nuke energy is used overnite to pump water up, then harvested during peak energy use hours (all within a 24 hr period)

    PS transformers do store energy, in the magnetic field during part of the 1/60 sec cycle.

  25. Joe says:

    Ah, the world according to Ed Wallace! He’s still a car salesman who claims to be a journalist. Not!!!! His website is supported by people who are his friends (meaning they pay for his friendship) and he has got to be scared to death that his friends are in the dinosaur category.

    If he was so smart, why didn’t he warn his “friends” that they were all going to be in the tank soon?