Dropping the oil addiction and the terrorist .

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Very interesting story from the International Herald Tribune by a writer called Thomas L. Friedman about nations addicted to selling oil. He believes the Soviet Union fell, not so much from the efforts of Reagan (ray-gun) et al but, because the Soviets had relied on high oil prices to keep various demanding sections of their populace at bay. When oil prices fell so did the Soviet empire because, they couldn’t afford their war in Afganistan or maintain subsidies at home.

Friedman sees Iran heading towards the same sort of problems. Heavily dependant on oil sales it has enjoyed high recent oil prices and has been able to fund its activities in Lebanon, Gaza & Iraq, while subsidising commodity prices at home. Iran’s President Ahmadinejad is becoming increasingly unpopular at home because he’s spending too much time bashing the United States and not enough time reforming his nation’s stagnant economy. Oh dear.

Here’s the coup. Divert your economy to alternative energies and drop the terrorist states in it at the same time. Simple really. 🙂

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8 Responses to Dropping the oil addiction and the terrorist .

  1. Pete Smith says:

    It’s not just the so-called terrorist states that will have problems. The Saudis will struggle to finance those gold-plated Range Rovers and jewel-encrusted camels. They’ll probably also cut back on those multi-billion arms deals. Since a large proportion of that business is done with the UK, our economy will suffer as well.

  2. matt says:

    Dropping an addiction is always messy. We could take the needle out slowly. Make adjustments. Set up clinics for rehabilitation of crooked businessmen & politicians. The ex-workers from the arms factories could do the counselling.

    🙂

  3. Pete Smith says:

    We could take the needle out slowly.

    I prefer cold turkey. Plenty of that lying around in Suffolk at the moment.

  4. keithsc says:

    Going back the Thatcher revolution here was largey financed by oil revenues. We are still almost breaking even in our oil production and sales and the US is still the largest oil supplier in the world. The story of what has happened to Iraq’s oil revenues is appalling since the War.

  5. matt says:

    The US as top oil producer. Always thought it was the Saudi’s or Russia but you are indeed correct;

    This comes from http://www.eia.doe.gov/iea/overview.html ;

    ‘The United States, China, Russia, Saudi Arabia, and Canada were the world’s five largest producers of energy in 2004, supplying 49.8 percent of the world’s total energy (Table F.1). The next five leading producers of primary energy were Iran, India, Norway, Australia, and Mexico, and together they supplied an additional 12.4 percent of the world’s total energy. The United States supplied 70.4 quadrillion Btu of primary energy, significantly more than the 55.9 quadrillion Btu produced by China or the 51.7 quadrillion Btu produced by Russia.

    The United States, China, Russia, Japan, and India were the world’s five largest consumers of primary energy in 2004, accounting for 51.1 percent of world energy consumption (Table E.1). They were followed by Germany, Canada, France, the United Kingdom, and Brazil, which together accounted for an additional 13.1 percent of world energy consumption. The United States consumed 100.4 quadrillion Btu, more than one and two-thirds times as much as the 59.6 quadrillion Btu consumed by China, while Russia consumed 30.1 quadrillion Btu.’

    As we know already & the stats above confirm, the US consumes more than it produces, hence their need to strike up their uneasy relationship with the Saudis & others. Obviously the US is therefore interested in lower oil prices & so they aren’t affected by the phenomenon mentioned in my post.

  6. matt says:

    Regarding the US sending out kept oil revenue monies to Iraq once Sadam had been kicked out; It’s no wonder a good chunk of it has gone missing. They shipped all 20 billions in notes out on pallets. It weighed 360 tonnes. INSANE!!

  7. Pete Smith says:

    Sorry, getting very mixed messages here. You said:

    “The US as top oil producer” and “‘The United States, China, Russia, Saudi Arabia, and Canada were the world’s five largest producers of energy in 2004”.

    Your link says “Total primary energy production reported in this table includes the production of petroleum (crude oil and natural gas plant liquids), dry natural gas, and coal, and the net generation of hydroelectric, nuclear, and geothermal, solar, wind, and wood and waste electric power. Total primary energy production for the United States also includes the production of alcohol (ethanol blended into motor gasoline) and the production of geothermal, solar, and wood and waste energy not used for electricity generation from Table F.9”.

    It’s important to distinguish between oil production and energy production. US oil output has been declining for some time, they are making up for that with other energy sources.

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