The High Cost of Oil Dependency
If the high price of oil and distrust of foreign suppliers is indeed a national security concern, Americans must be wondering why Congress and past and present U.S. presidents, have been so negligent about protecting its citizens by failing to break our dependency on foreign oil.
How would the U.S. deal with waging war if Iran and Venezuela decided to hike the per-barrel price of oil even higher that it is today -- or cut us off entirely?
In 1973, OPEC initiated an embargo in response to the Yom Kippur War and stopped oil shipments to the U.S. and countries that supported Israel.
As of June 20, 2008, the U.S. Strategic Petroleum Reserve has at total of 705.9 million barrels, according the Department of Energy. The nation's daily fuel consumption is 20.6 million barrels per day, according to the Energy Information Administration.
If the U.S. was hit with exorbitant price spikes or a protracted embargo, and was only able to use its strategic reserve, how long would the oil last ? According to my calculation, 34 days.
Even if OPEC members cut off oil shipments, the U.S. also imports petroleum from Canada, Mexico, Columbia, Brazil, Russia, UK and others, and wouldn't go without.
Earlier this month, Israeli jets were reportedly rehearsing for a possible attack on Iranian nuclear facilities, according to CBS News. Was this a ruse meant to pressure Iran to shelve its nuclear program, or does Israel really mean to launch an attack?
Given Israel's record for decisive military action against nuclear threats, it's probably not a bluff. Last September, the Middle Eastern nation attacked a suspected nuclear facility in Syria and in 1981 destroyed a nuclear site in Iraq.
If the Israelis strike Iran, how will the action affect oil prices? Any ideas about cause and effect?
-Keith
How would the U.S. deal with waging war if Iran and Venezuela decided to hike the per-barrel price of oil even higher that it is today -- or cut us off entirely?
In 1973, OPEC initiated an embargo in response to the Yom Kippur War and stopped oil shipments to the U.S. and countries that supported Israel.
As of June 20, 2008, the U.S. Strategic Petroleum Reserve has at total of 705.9 million barrels, according the Department of Energy. The nation's daily fuel consumption is 20.6 million barrels per day, according to the Energy Information Administration.
If the U.S. was hit with exorbitant price spikes or a protracted embargo, and was only able to use its strategic reserve, how long would the oil last ? According to my calculation, 34 days.
Even if OPEC members cut off oil shipments, the U.S. also imports petroleum from Canada, Mexico, Columbia, Brazil, Russia, UK and others, and wouldn't go without.
Earlier this month, Israeli jets were reportedly rehearsing for a possible attack on Iranian nuclear facilities, according to CBS News. Was this a ruse meant to pressure Iran to shelve its nuclear program, or does Israel really mean to launch an attack?
Given Israel's record for decisive military action against nuclear threats, it's probably not a bluff. Last September, the Middle Eastern nation attacked a suspected nuclear facility in Syria and in 1981 destroyed a nuclear site in Iraq.
If the Israelis strike Iran, how will the action affect oil prices? Any ideas about cause and effect?
-Keith
posted by Keith Phucas at
2:09 PM
3 Comments:
hang on to your moped. I was discussing this exact subject of oil dependency the other day and from what I hear I am pessimistic. i think nuclear power and electric cars are the only answer with additional drilling - we have only 2 answers - dark ages/caves or more technology. i think requiring all battery electric cars for taxi's and military cars stateside allows fleets to be used and tested in substantial way - give some start up incentive for the manufacture of these cars and then build separate refinery's for the military as we did in WWII - take some pressure off the civilian refineries and increase our production. To avoid a resource war we need to take measures as bold as if we are in a war - oh wait, we are!!!!
I am pessimistic because as I look at history, if there is one thing countries go to war over is its "resources" - food, water, and energy. As nations become more desperate, they resort to violence to protect their interests and even the US of A will do so.
The U.S. needs to seriously fund programs directed at lessening and ultimately eliminating a dependency of foreign oil. We must stop the addiction we have developed. There has been much talk over the years about doing just this, but no real, viable or serious action. The oil companies have held sway with the government for a very long time. This is especially true since 2001.
There is no "quick fix" to this problem. Anyone pretending otherwise is just selling good old fashioned snake oil. It takes money and mounds of technological R&D to get the country on the right path.
As far as an Israeli attack on Iran is concerned; I believe it will have a very negative effect on the current oil situation. History will repeat itself, and the countries with the oil are in the driver's seat. All the more reason, why the above observations need to be taken seriously. We have put ourselves in a position where we can be held hostage by the Middle Eastern countries on whom we are energy dependent. It might be a good idea not to piss-off Canada at this point.
Where is my electric car? faster please.
Post a Comment
<< Home