rethinking the paradigm?

Irish company Steorn claims they have developed a method of using the interaction between magnets to produce energy. This energy is "free and unlimited", a statement that flies in the face of accepted modern physics. Could it be that we are violating conservation of energy or are we using a fundamentally flawed paradigm about energy creation? Perhaps we aren't creating energy out of thin air but rather converting energy from one form to another by means of a perfectly efficient transfer method.

Steorn has challenged academics to verify their findings and well... if no flaw is found we could be living in a drastically different world. This is beyond an energy dependence problem where the US and China are consuming increasingly huge amounts of energy, this could change the balance of international wealth. I can see the countries that stand to lose from a discovery like this is those middle eastern economies that are entirely oil dependent. Middle eastern nations like Saudi Arabia have long been warned that their dependence on oil exports was a flawed policy, one that would doom them when their oil reserves ran dry. Oil reserves running out is a outcome that can be prepared for, a change in sources of energy could render their presence obsolete. Can you imagine the social unrest caused by rapid economic change? Terrifying.