Notice: Any comments made by me, are my own, and should not be construed to be those of anyone else, or any organization or association.

Wednesday, January 25, 2012

Petroleum and our National Security

Oil - or the control of oil - can be a weapon to be used against us. And in our (USA) case, we are very vulnerable to having it used as such. Let me paint you a couple pictures to make my point.

1. Iran completes the construction of a couple nuclear weapons. With such weapons, they can either use them themselves, or make them available for our other enemies to use. Even without an effective delivery system, cross-country transport, and remote detonation, could be done. (IED anyone?)

2. The Taliban, or other radical Islamists, places nukes in strategic oil production/distribution locations, and hold hostage the oil from those locations. (Even low-yield nukes, would close oil fields from use.)

3. Iran commences a naval stand-off in the Strait of Hormuz, effectively shutting off shipping from that region, while countries and militaries maneuver some kind of stand-down.

4. Iran (#4 in oil production) also cuts all exports of oil to the US.

5. Venezuela (#11 in oil production), taking sides with Iran, shuts of all oil exports to the US.

With the above strategies put into action, or any of two such events, then here is what "I think" we could expect –

*Oil imports get drastically cut.
*US oil supplies get stifled, and prices jump drastically.
*Oil prices skyrocket, to $300 brl, or more.
*Gasoline prices in the US jump to $10 plus per gal.
*With a possible military threat, our military would be first on the list for oil/fuel, and could cause limited supplies for commercial use, and could even cause rationing, like what was seen in the 1973.
* Trickle up supply costs, would drive prices of all trucked goods, to go up exponentially.
* Consumers panic buy goods, drive prices higher.
* Small businesses suffer from exploded prices, and have to close.
* Gasoline shortages cause people to lose work, incomes dive, civil unrest erupts in hardest hit areas.
* Fear drives citizens to demand something be done.
* Government responses could escalate into wider war in the Mid-East.

By the way, Ron Paul fans – THIS is why I can’t support Paul. He doesn’t think we shouldn't tell another country they can’t have nukes!

Contrary to hostile nations and terror groups, we (the USA) don’t threaten another nation's “existence”, as Iran and extreme Islamists do!

We have to think far past gasoline prices for our cars, as oil is not JUST a commodity. It is a way of life in the industrial world, and in the US in particular, and is a needed commodity for everyday life and commerce.
Cut our oil, and cut our way of life and cause crisis all over the country.