Thursday, August 11, 2005

Oil Prices Surge Near $66 per Barrel; Thanks Pres. Bush!

Title: Oil Prices Surge Near $66 per Barrel; Thanks Pres. Bush! [ Link ]

Source: Raising Kaine
Published: 2005-08-11T23:10:59-04:00
Modified: 2005-08-11T23:10:59-04:00


I just thought I’d point out that the ongoing spike in oil (and gasoline) prices is not coming from nowhere. Next time you go to fill up at the pump, you might want to give thanks to President Bush and his good friends the Saudis. Why do I say this? Several reasons.

First, Bush IS good friends with the Saudis, yet he has almost no leverage on them. Frankly, the Saudis know that the United States is addicted to its oil, and that they’ve got a President in the White House who refuses to take any action to alter this situation. Given that, why shouldn’t the Saudis just sit back and enjoy their huge oil revenues — of which a portion goes to anti-Western, anti-Christian, and anti-Semitic fundamentalist Islamic religious “madrasas” around the world?

Second, the Bush Administration has done essentially nothing, even in the aftermath of 9/11, to reduce U.S. oil imports, either on the demand side (the key to the equation) or the supply side. Instead of getting us off of oil (which we can start to do right now with a jump start to hybrid engine technology) from a country that supplied 15 of 19 hijackers on 9/11, the Bush Administration has instead has urged us all to go shopping, to live our lives normally, and not to worry as our military takes care of the situation over in the Middle East. Yeah. Right.

Third, the Iraq War has, aside from resulting in around 1,800 American soldiers killed and many more wounded (thanks, in large part, to the Bush Administration’s poor planning and arrogance heading in there in the first place), also removed around 1 million barrels per day of oil from world markets compared to when Saddam was in power. And the situation’s not getting any better over there either, with pipelines getting blown up seemingly the minute they’re repaired. This is not what the Bush Administration promised, that’s for sure.

Fourth, Bush’s foreign policy failures have now put is in a bad position vis-a-vis yet ANOTHER major oil exporter, Iran, which is ratcheting up a nuclear crisis even as I type these words. As the New York Times points out:

And because there is little spare capacity left, oil markets become nervous whenever an oil producer goes through a period of political tension. The latest case of concern for oil markets is Iran.

So what’s the Energy Plan here? Oh, that’s right, we’re all going to be using (heavily subsidized) ethanol, which unfortunately takes more energy to produce than you get out of it. Or, maybe in 20-30 years or so, we’ll have hydrogen fuel cell vehicles, except for the problem that you get hydrogen from…you guessed it, FOSSIL FUELS! Or, maybe opening up the Arctic National Wildlife Refuge (ANWR) to drilling is the answer, except that the government estimates that this would produce as little as 650,000 barrels per day (with a mean projection of around 1 million barrels per day) at its peak, or just 3%-4% of U.S. oil consumption.

In other words, as gasoline prices soar, the Bush Administration has no clue what to do about it. Meanwhile, the American motorist is screwed. Unless, of course, the incredible wealth flowing to OPEC eventually “trickles down” to Americans. Isn’t that what Republican economic theory says? Oh wait, that’s why the call it the “Laffer” curve. Ha ha ha, very funny.

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