QUOTE
sportinlife:
If our dependence on Saudi oil (20% is it?) so distorts our purported support for human rights then it is little wonder that the need for the same drug distorts Russia's and China's ability to seriously oppose the nuclearization of Iran, except for some handslapping from the UN/IAEA.
Which means when the metal hits the pedal on Iran neither will support a military solution, and Iran knows this. So where does that leave US when Iran has the bomb aimed at Israel/Europe?
Er.. Actually, the US only imports about 12 - 16% of its oil from the Middle East. Although we do import a lot, much of it comes from other sources: Venezuela, Mexico, Canada, SE Asia, The North Sea, and The Indian Ocean. The amount imported from the Middle East is significant because of the % of imports it represents – 28% of imports.
It is significant to note that this percentage has risen steadily since the 1970’s on the basis of relatively cheap foreign oil prices. In 1970 we imported 21.5% of our oil from overseas, by 1975 that had risen to 35.8%.
Due to the 1973 and 1978 oil crises, Congress and the Carter administration passed many conservation laws, including those on automotive fleet fuel consumption . The result was that by 1980 imports had slowed to roughly 38% of American consumption, and by 1985 those laws had reduced foreign imports to approximately 27.3% of national consumption.
In 1983/84 though R Regan made good on his campaign promises to the oil & gas, automotive, and energy industry’s. The Admin, with the help of congress eliminated all funding and subsidies for alternative energy R&D, eliminated most of the new rules on fuel consumption, and ‘deregulated’ the energy industry. Tens of thousands of people working in Alt E companies lost their jobs overnight, hitting the Rocky Mountain States and Denver in particular very hard.
The result was that although imports had dropped dramatically to 27.3 of national consumption by 1985, under the new ‘deregulation’ oil imports exploded to 42.2% of national consumption by 1990 and have been rising ever since.
Admittedly, much of this new increase in reliance on imports is directly attributable to the per capita increase in oil products usage across the board in the US. Usage that has more than quadrupled from 1975 to 2005, due to increases in personal and industrial consumption - much of which is directly attributable to deregulation of environmental and conservation standards such as higher vehicle consumption averages (SUV’s, Trucks), cutbacks in public transportation, and elimination of conservation incentives for industry.
We have been on a binge, but now it’s time to pay the check.
Where that leaves us is as the Major Player in the world, dependant on a commodity that does not belong to us. Either we force ourselves to become independent, or we allow whoever owns the oil to dictate terms to us.
If Iran gets a nuclear capability, then all bets are off. Why? Because they will use it the first time the mullahs get miffed. The Europe and the US will of course retaliate, and the Middle East will dissolve into chaos for the next 200 years.
The only way to avoid a crushing economic blow then is to do the R&D and conserve now. But that will never happen under a Bush Administration – Look at the half assed energy proposals he unveiled the day after the State of the Union Speech.
Rob