Energy Wars

This article will explain to you why the Totally Screwed-Up US Strategic Plan for the Caspian Basin has backfired and created a "megatrend" against America that may well be the doom of our nation.

Influential former Pentagon official Richard Perle has been exploring going into the oil business in Iraq and Kazakhstan, according to people with knowledge of the matter and documents outlining possible deals.

Canada's oil sands pose a significant investment risk as their development may be hampered by a government attempt to curtail the industry's rising carbon dioxide emissions, a report published Tuesday said.

John McCain again pushed for offshore drilling Monday, and suggested it could provide relief to American consumers "within a matter of months." "There are some instances within a matter of months, they could be getting additional oil. In some cases, it would be a matter of a year," McCain said at a press conference in Bakersfield, California. "In some cases, it could take longer than that depending on the location and whether or not you use existing rigs or you have to install new rigs. But there is abundant resources in the view of the people who are in the business that could be exploited in a matter of months."

Support for Canada's oil sands is coming from an unexpected American group--an anti-poverty coalition led by African-American civil rights and faith leaders.

Under cover of night dozens of barges queue up to dock at a jetty in a creek somewhere in Nigeria's oil-rich Niger Delta. Their holds are filled with stolen oil running from valves illegally installed into a pipeline.

Since the beginning of the modern oil age in 1859, pessimists have warned that the oil wells would soon dry up or that oil production would peak and not be able to keep up with ever-increasing demand. Again and again, the pessimists have been proven wrong, often embarrassingly so, as science and technology have allowed more oil to be extracted from existing fields and from deposits in more challenging locations such as the Arctic and the deepest waters of the continental shelf. Indeed, oil production rates have increased, on average, by about 1.1 million barrels per day per year over the past 10 years.

The U.S. Congress is considering legislation that would require 70 million barrels of crude oil from the nation's Strategic Petroleum Reserve to be released to the open market in an effort to drive down gas prices. That would mean pumping oil out from man-made caverns where it is stored. Only twice in the reserve's 31-year history has oil been extracted for emergencies.

Two terms that definitely scare investors (at least those who don't know what implications both have on their portfolio) are Stagflation and Peak Oil. One (Stagflation) might be happening soon but could be avoided, while the other (Peak Oil) might not happen soon, but cannot be avoided.

Humanity is sitting on a railroad track, and a train is speeding toward us. The name of that train is global oil shortages. But, let's start at the beginning. Oil was discovered in 1859 in the United States. However, we did not appreciate its many uses, so production and consumption began slowly. During the years between World War I and World War II we learned of its many uses, but only in the last few decades have we built our dependency on oil. Now, all our clothes, food, transportation, construction depend on petrochemicals. As the oil production/consumption line has risen, the food production line has followed and also the global population line.

Liberals say Iraq is another Vietnam; conservatives say Barack Obama is Jimmy Carter redux. ABBA's a mega-hit and Elton John's going to be performing at Madison Square Garden. Had enough of these '70s flashbacks? Brace yourself for another: the return of the national speed limit, courtesy of one of the country's most venerable politicians.

There are 98 oil producing countries in the world, which makes it seem as if we should have a lot of choices in our sources. However, 68 of those countries have, like the United States, passed peak production. 60 of them are in terminal decline. That means that the remaining 30 will have more, and more, and more control every single day that we continue to use oil. If we want to reduce our demand for foreign oil, there is exactly one way in which it can be done: use less oil.

One thing has been driving me crazy about this drilling debate - everyone seems to assume that if we drill for oil in the US, that we will get the oil. And hence, we won't be dependent on foreign oil anymore. But we won't get anything, Exxon-Mobil will. The oil that comes from that drilling will not be United States property (Republicans aren't suggesting we nationalize the oil companies, are they?). It will be the property of whichever oil company got the rights to that contract. They can then sell it to whoever they like - and they will. They will sell it on the world market, so the Chinese will have just as much access to the oil that comes out of the coast of Florida as we will.

Senate Democrats failed Friday to advance a measure to rein in oil market speculators, one of a series of efforts to tell voters they are serious about addressing $4-a-gallon gasoline, and they

House Republicans yesterday scuttled a bill that Democrats had hoped would help lower gasoline prices by forcing the Energy Department to release 70 million barrels of oil--about a three-day supply--from the national stockpile. Democrats promised that the action would have produced immediate relief at the pump, as was the case with similar releases in '91, 2000 and '05. The Strategic Petroleum Reserve now holds about 700 million barrels. Despite winning a clear 268-157 majority, the measure still lost. Democratic leaders had brought the proposal up for debate under rules requiring two-thirds vote to pass. But passing the bill by just a majority would have meant allowing Republicans to force a vote on new offshore drilling leases.

The Commodity Futures Trading Commission said on Tuesday that a government interagency task force has found that the huge jump in oil prices is due to "supply and demand factors" and that speculators are not to blame for high fuel costs.

T. Boone Pickens is one of America's biggest independent oil producers, so he could be forgiven if he simply chose to sit back and pile up his profits. But the Texas entrepreneur is convinced that America must break its dependence on oil as a major source of energy, and has announced that over the next few weeks he is going to outline in the major media a plan for doing exactly that. He is right on the money, and I am going to listen carefully to what he has to say.

Once again, the week's most important energy news has gone unreported by media in the U.S. Most of the U.S. news media still doesn't understand that the important energy news is happening outside the United States. Once again this week, cameras rolled as the White House and Congress bickered for partisan advantage, this time over offshore oil drilling. Meanwhile, half a world way, three events - one indicative of the growing risk of a shooting war over energy - were completely ignored.

Of the 266 distinct nations or entities on the world today, nearly 100 are now reporting continuing energy shortages, mostly in the form of inadequate electricity supply, but in a growing number of cases, shortages of liquid fuels and natural gas. The actual number of countries affected is probably well over 100 but there are dozens of isolated island-states scattered around the world that are rarely heard from and are almost certainly suffering in silence while waiting for the next oil tanker to come in.