Matthew Simmons

Matthew R. Simmons
Born	Matthew Roy Simmons April 7, 1943(1943-04-07) Kaysville, Utah, U.S.[1]
Died	August 8, 2010(2010-08-08) (aged 67) North Haven, Maine, U.S.
Occupation	Investment banker, author
Religion	Mormon[2]
Spouse	Ellen Christine Loungee[3]
Children	5 daughters
Parents	Roy William Simmons & Elizabeth Ellison[3]

Matthew Roy Simmons (April 7, 1943^[4] – August 8, 2010) was founder and chairman emeritus of Simmons & Company International, and was a prominent advocate of peak oil. Simmons was motivated by the 1973 energy crisis to create an investment banking firm catering to oil companies. In his previous capacity, he served as energy adviser to U.S. President George W. Bush. He was, up until his death, a member of the National Petroleum Council and the Council on Foreign Relations.

Simmons, who lived in Houston, Texas, died at his vacation home in North Haven, Maine, on August 8, 2010, at the age of 67.^[5][6] The cause of death was ruled "accidental drowning with heart disease a contributing factor". ^[7]

Simmons was the author of the book Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy, published in 2005.^[6] His examination of oil reserve decline rates helped raise awareness of the unreliability of Middle East oil reserves. He gave numerous presentations on Peak Oil and water shortages.^[8]

Simmons believed that the Club of Rome predictions are more accurate than usually acknowledged.^[9]

Simmons was the founder of the Ocean Energy Institute in Maine. His vision was to make Maine a leader in energy from offshore wind and ocean forces.

Saudi Arabian oil reserves

In his book, Simmons argues that production from Saudi Arabia and especially from Ghawar – the world's largest oil field – will peak in the near future, if it has not done so already. Simmons bases his case on hundreds of internal documents from Saudi Aramco, professional journals and other authoritative sources.

Oil price wager

Main article: Simmons–Tierney bet

In August 2005, Simmons bet John Tierney and Rita Simon, the widow of Julian Simon, $2500 each that the price of oil averaged over the entire calendar year of 2010 would be at least $200 per barrel (in 2005 dollars).^[10] Simmons would have lost this bet by a very wide margin: 2010 average oil prices did not even reach $100. A factor in this, however, was that the world-wide economic collapse created demand destruction that greatly decreased the demand for oil causing prices to fall. The decline in price is evidence supporting some critics who contend that Simmons' theories did not take adequate account of economic effects on the oil supply. However, his theories about the difficulties in increasing (or maintaining) production levels have not yet been disproved.

Ocean Energy Institute

The Institute researches and develops energy sources from the oceans such as wind energy and tidal energy. [3]

Appearances and interviews

Simmons made contributions to the films Peak Oil – Imposed by Nature, The Power of Community: How Cuba Survived Peak Oil (2006), The End of Suburbia, Crude Impact, and Crude Awakening: The Oil Crash, and appeared on World Energy Television World Energy Video Interview, August 2008

Deepwater Horizon oil spill conjectures

Simmons made several controversial comments and predictions regarding the Deepwater Horizon oil spill and BP's solvency, including:

• Talking with Bloomberg TV's Mark Crumpton, Lizzie O'Leary and Julie Hyman about BP Plc's oil leak in the Gulf of Mexico.^[11]

• During a June 9, 2010, interview with Fortune,^[12] Simmons claimed that BP would "have about a month before they claim Chapter 11". The comment initially contributed to a precipitous drop in BP's market capitalization. However, subsequent events, including BP's establishment of a $20 billion claim fund, have shown Simmons' claim to be highly unlikely, and BP's stock price has begun to recover.

• On June 9, 2010, Simmons was interviewed by Barron's journalist Tieman Ray. Simmons disclosed that he personally held an 8,000 share short position in BP stock. As BP's stock price went lower, Simmons was benefitting financially amid fears of bankruptcy. ^[13]

• During a July 7, 2010, interview on CNBC^[14] (which was around the date Simmons originally predicted BP would be filing for bankruptcy), Simmons claimed that scientists were reporting the flow rate from the oil spill was "spewing 120,000 barrels a day into the Gulf" and that there have been estimates that we have "lost oxygen for 40% of the Gulf of Mexico". He further claimed that the relief wells will not stop the oil spill.

• A week later, during a July 15, 2010 interview with KPFK – Pacifica Los Angeles,^[15] Simmons asserted that the relief wells and the capping process on the Macondo wellhead are publicity stunts and that the real vent is up to ten miles (16 km) away. He said that an enormous pool of crude is accumulating below the sea floor, releasing poisonous gases and waiting to be whipped up by a hurricane.

• Also, previously, on May 26, 2010, Matthew Simmons was a guest on 'The Dylan Ratigan Show' on MSNBC, where he explained his reasons for believing that the Deepwater Horizon oil spill involved not only the leak being monitored by BP's video-camera-equipped ROVs [remotely operated vehicles], but another, much bigger leak, several miles away.

Wikileaks Cable Mention

The Guardian reported that Simmons was mentioned in a leaked U.S State Department cable dated November 2007:

COMMENT: While al-Husseini believes that Saudi officials overstate capabilities in the interest of spurring foreign investment, he is also critical of international expectations. He stated that the IEA's expectation that Saudi Arabia and the Middle East will lead the market in reaching global output levels of over 100 million barrels/day is unrealistic, and it is incumbent upon political leaders to begin understanding and preparing for this "inconvenient truth." Al-Husseini was clear to add that he does not view himself as part of the "peak oil camp," and does not agree with analysts such as Matthew Simmons. He considers himself optimistic about the future of energy, but pragmatic with regards to what resources are available and what level of production is possible. While he fundamentally contradicts the Aramco company line, al-Husseini is no doomsday theorist. His pedigree, experience and outlook demand that his predictions be thoughtfully considered. END COMMENT.^[16]

Death

Simmons’ lifeless body was found August 8, 2010, in his hot tub.^[17] An autopsy by the state medical examiner’s office the next day concluded that he died from accidental drowning with heart disease as a contributing factor. ^[18] Many conspiracy theorists believe Simmons was killed for his views on the "cover up" concerning both B.P.s' and the U.S.A's deception about the Gulf oil spill, claiming it had never really been cleaned up nor the leak ever stopped.

^[19]

Further reading

• Matthew Simmons, Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy 2005 ISBN 0-471-73876-X, The book has been translated into German and Chinese.

See also

• Richard Heinberg
• Jeremy Leggett
• Dale Allen Pfeiffer
• Peak oil
• Simmons–Tierney bet
• Cornucopian

References

1. ^ Tamsin Carlisle. Maverick of the oil industry. TheNational. Retrieved August 16, 2010.
2. ^ Obituary: MATTHEW ROY SIMMONS 1943-2010. Houston Chronicle. August 26, 2010. Retrieved August 26, 2010.
3. ^ ^{a b} Story Capsules: Simmons Family. Retrieved August 16, 2010.
4. ^ Texas Voter Registration rolls. Retrieved August 13, 2010.
5. ^ Energy expert Simmons dies in North Haven. Kennebec Journal.
6. ^ ^{a b} Utah native Matthew Simmons, energy investment banker, dies in Maine
7. ^ Tom Fowler. Energy insider issued wake-up call: Financier believed world was near peak oil production. Houston Chronicle. August 10, 2010.
8. ^ ""Matthew R. Simmons' Presentations"". Ocean Energy (formerly at Simmons-Co International). http://www.oceanenergy.org/matthew_simmons_2010.asp. 
9. ^ Simmons, Matthew. Revisiting The Limits to Growth: Could The Club of Rome Have Been Correct, After All?. GreatChange.org, 30 Sept 2000.
10. ^ Tierney, John.The $10,000 Question. NY Times. 23 August 2005. Retrieved 7 June 2007
11. ^ "Matt Simmons Warned Us Against BP Oil Spill In Gulf Of Mexico - Now He Is Dead". UFO Blogger. http://www.ufo-blogger.com/2010/08/matt-simmons-dead-bp-oil-spill.html. 
12. ^ Tseng, Nin-Hai. Matt Simmons, Dr. Doom of the Gulf Coast spill. Fortune. 9 June 2010. Retrieved 11 July 2010
13. ^ http://blogs.barrons.com/stockstowatchtoday/2010/06/15/bp-simmons-still-sees-bankruptcy-massive-hole-at-the-well-bore/
14. ^ Francis, Melissa and Kudlow, Larry. Nuke the Oil Well?. CNBC: The Call. 7 July 2010. Retrieved 11 July 2010
15. ^ KPFK
16. ^ Guardian: US embassy cables: Saudi oil company oversold ability to increase production, embassy told[1]
17. ^ http://www.businessinsider.com/matt-simmons-dies-2010-8
18. ^ Obituary: [2]
19. ^ "THURSDAY, AUGUST 18, 2011 BP's Gulf Oil Well May Be Leaking AGAIN: "The Oil May Be Coming From Cracks And Fissures In The Seafloor Caused By The Work BP Did During Its Failed Attempts To Cap The Runaway Macondo Well – And That Type Of Leakage Can’t Be Stopped, Ever"". http://georgewashington2.blogspot.com/2011/08/bps-gulf-oil-well-may-be-leaking-again.html. 

External links

Book

• Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy - Simmons 2005 book

Articles

• Matt Simmons discusses global trends on World Energy Television World Energy Video Interview, August 2008
• Simmons investigates latest data EVWorld interviews Matthew Simmons, Feb. 2008.
• Matthew Simmons calls on regional oil producers to curb output MEED.
• Matt Simmons discusses global trends on World Energy Television World Energy Video Interview
• Global Crude Supply: Is the Oil Peak Near? World Energy Magazine, by Matthew Simmons.
• Fixing Corrupt Investment Research: It's Not That Hard World Energy Magazine. Matthew Simmons.
• The Case for a Coming Gas Shortage World Energy Magazine. Matthew Simmons.
• Is the Petroleum Pricing System Out of Control? World Energy Magazine. Matthew Simmons.
• The Coming Saudi Oil Crisis
• More articles by Simmons

Presentations

• Matthew Simmons Presentations

General

• Ocean Energy Institute - Simmons' last project, intended to eventually harvest massive reserves of wind energy offshore from Maine, using synthesis of ammonia fuel to be shipped by tanker.
• Jim Jarrell's criticism of Twilight
• ASPO USA Peak Oil conference at Boston University, 27 October 2006
• Financial Sense Newshour: Matthew Simmons, 5 audio interviews: 6 August 2005 – 7 April 2007.
• The Economist: Face Value: Review of Matthew Simmons in The Economist
• Radio Broadcast: True News broadcast on June 28, 2010

Persondata
Name	Simmons, Matthew
Alternative names
Short description
Date of birth	1943-04-07
Place of birth	Kaysville, Utah, U.S.
Date of death	2010-08-08
Place of death	North Haven, Maine, U.S.