Thursday, May 04, 2006

Slipknot

The United States likes oil. Oil is what keeps the Dollar strong (as long as oil is traded in Dollars), and oil is what drives the economy. I think though that the US might actually be poisoning itself even faster then it is poisoning the rest of the world with this addiction. And I'm not even talking about the enviroment really.

The US used to have a lot of Oil. Even then (way back in the sixties and seventies) it still needed to complement it's own production with about 30% imports. The US oil reserves have long since been plundered though, and are almost depleted. In the nineties the US was already 60% dependend on foreign oil, and this will only increase as we move further into the 21st century. The only regions that seem to have a strong sustainable oil reserve are the Middle East (about 75% of proven long term reserves) and Venezuela (but only if you count the more expensive heavy oil supply in the Orinoco belt).

Neither regions have much love for the US unfortunately. On top of this, new upcomming economies such as China and India are requiring more and more oil. These regimes have a much better relation with the owners of the oil reserves, and thus seem to be in a better position to secure these for the future. It's not surprising then, that the US is looking desperately for a foothold in the Middle East.

Unfortunately this singleminded approach seems to be nothing short of suicide. The increasing dependency on imported oil strain the US economy very badly. But what is worse is where this money is eventually ending up. All those billions of dollars that the US pays, and will increasingly pay, to satisfy their addiction, funds the very regimes that they perceive to be a threat to their security. Iran, Iraq, Venezuela, and even Osama Bin Laden all thrive on their petrodollars. The very money used to finance the 9/11 attacks, the ongoing insurgency in Iraq and the defiancy of Iran. The US seems to be stuck in a slipknot, and in stead of stepping back and undoing the rope, it rushes forward untill it will eventually suffocate and die.

Why doesn't the US use their warmonies to invest in durable and renewable fuels? Even if they do not care for the enviroment enough to make the effort, then at least let them consider it for the sake of their own long term economic prosperity, and your national security.

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