Our Oil Supply - Checkmate

Oil shortages are oil shortages- you don’t have to just run out of oil, or the forecast of ‘Hubbert’s Peak’ doesn’t have to be true for America to be devastated by oil shortages. Recent new discoveries and technologies have drastically reduced our need for oil imports, but we still depend on foreign sources for almost 20% of our oil, and much of that oil is in the hands of people hostile to America. At a time when numerous groups and countries would like to wage war on America, they now have or are gaining the means to wage real war. America doesn’t have to lose the full 20% of it’s oil imports, just a 5 to 10% drop in oil would be devastating to our economy. We know this from the 1973 oil crisis when OPEC cut its oil exports by 25%, the embargo reducing traded oil supplies by 14 percent internationally. Then again, in the 1979 oil crisis, Iran dropped from more than five million barrels a day to zero by the end of the year, amounting to about a 5 percent loss in global production.

Both times, 1973 and 1979, the resulting shortages of oil had devastating effects on our economy that resulted in loss of millions of jobs, with a large portion never returning. The 1973 crisis greatly accelerated the demise of manufacturing in America which resulted in the ‘rust belt’. The reality is that production from oil fields continues to decline about 3 to 5 percent each year ¹. We can expect, that by the 2060's the available oil will be just one fifth of what we have today ², that’s a reduction of 80% of our present oil supplies, and that means for most people their living in a high technology society comes to an end.

The thing to remember . . . it’s not about actually running out of oil, it’s about not having enough to fulfil our needs, thereby resulting in economic chaos, coupled with oil being far more to our economy than just gas for cars. The recent assessment of the Permian oil and gas basin which straddles western Texas and southeastern New Mexico shows promise of actually making America self sufficient for oil, but even then we are not immune for worldwide oil shortages because when other nation’s economies fail, they will still drag ours down.

For the world, the major oil suppliers are Saudi Arabia, Iran, the U.A.E., Iraq, Kuwait, Venezuela and Russia.

Iran-Since the radical fundamentalist took over, Iran has been openly hostile to America, actively working to do us harm at every opportunity. They welcome any chance to do us as much harm as possible, but with international sanctions imposted again, their exports are way down limiting the world’s oil supply, but other countries have been able to compensate.

Iraq- are presently friendly towards America, but are in a very exposed position of being undermining by fundamentalist out of Iran and Syria. If Iraq falls into the radical sphere, then these oil producers will be threaten. Remember . . . Usama bin Laden was originally attacking Saudi Arabia, before the Gulf War diverted his attention to America. And gaining influence over these friendly nations will give him the true power to devastate America. Even though we would not be occupied, we would be defeated - checkmate!

Venezuela- The socialist state of the late Hugo Chavez has disintegrated as a functioning state and economy, but still remains very openly hostile to America. With US sanctions, Venezuela’s exports have dropped tremendously with devastating result to its economy, having an inflation rate of over 1,000,000% per year. How long it will be, if ever, before Venezuela returns to a functional state is anyone’s guess, as well as a change in its posture towards America.

Russia- Vladimir Putin is from the old guard (started in KGB) and continues to consolidate his power and position. It appears he would very much like to see America's position in the world weaken. Given the opportunity, Putin may very well support any adventure which limits America's access to oil, with America ultimately becoming subservient to Russia, and hence why Russia now has a strong presences in the middle east.

Saudi Arabia, the U.A.E. and Kuwait are presently friendly towards America, but each are in a very exposed position of being undermined by fundamentalist out of Iran and Syria. If Iraq falls into the radical sphere, then these oil producers will be threaten. Remember . . . Usama bin Laden was originally attacking Saudi Arabia, before the Gulf War diverted his attention to America. And gaining influence over these friendly nations would give the radical fundamentalist true power to devastate America. Even though we would not be occupied, we would be defeated -

Checkmate!

China- In actuality, China is a ‘negative’ producer of oil, being an importer of almost all of its oil. The worlds second largest economy, China’s thrust into being a high technology modern nation over the last few decades has been astounding. But with virtually no domestic oil of its own, China is greatly expanding its presences and military, including Africa-Middle East and the islands between Vietnam and the Philippines to its oil. China appreciates how important oil is to her society and intends to ensure its access to oil. China is quite willing to go to war with anyone on the planet to get oil, and staying on the sidelines of such a war, even if America is independent of oil imports, would be near impossible.

If these dubious nations should conspire, in their mutual interest to harm America, to limit our supply of oil, they will truly be able to destroy us as a world power to be reckoned with. Bottom line - more and more our future is in the hands of others. The days of us deciding our destiny may well be coming to an end.

Oil isn’t about pollution or little dinky electric cars vs big gas guzzlers, it’s about killing.

Pure and simple, it is about war and killing.

1- “Crude, The story of oil”, Sonia Shah, Seven Stories Press, 140 Watts Street, New York, NY 10013, 2004

2- “Hubbert’s Peak, The Impending World Oil Shortage”, Kenneth S. Defferyes, Princeton University Press, 41 William Street, Princeton, New Jersey 08540

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