American Occupation at the Pump: Is $250 a Barrel Oil on Its Way?

[lovuian]

http://www.alternet.org/waroniraq/87998/
It's time to ask whether the U.S. military should have anything to do with American energy security.

If you thought things were bad, with a barrel of crude oil at $136 and the oil heartlands of our planet verging on chaos, don't be surprised, but you may still have something to look forward to. Alexei Miller, chairman of Russia's vast state-owned energy monopoly, Gazprom, just suggested that, within 18 months, that same barrel could be selling for a nifty $250. Put that in your tank and ... well, don't drive it. It will be far too valuable.

Think of Miller's sobering prediction as, at least in part, a result of the Bush administration's attempt to "secure" the Middle East and the oil-rich Caspian basin by force in two failing wars (and occupations). Now, imagine for a moment, what his price scenario might be if, as journalist Jim Lobe -- never one to leap from rumors to sensational conclusions -- recently suggested, forces in the Bush administration (and in Israel) in favor of launching an air campaign against Iran are gaining strength. Just the suggestion last week by Shaul Mofaz, an Israeli deputy prime minister, that an attack on Iran is "unavoidable" if that country doesn't halt its nuclear program -- "If Iran continues with its program for developing nuclear weapons, we will attack it. The sanctions are ineffective." -- helped send the price of crude oil soaring. Imagine what an actual air attack might do.

You know that old joke: military justice is to justice as military music is to music; well, someday, not so far into the future, a similar, though far grimmer joke, is likely to be made about Washington's attempts to secure the U.S. oil supply by military means. In the meantime, Michael Klare, author most recently of Rising Powers, Shrinking Planet: The New Geopolitics of Energy, considers the madness of Washington's long-term militarization of oil delivery and the devastating oil wars that have resulted. (His previous book, Blood and Oil, by the way, has recently been turned into a documentary film. Check it out.) --

[ladjf]

1. No. Because were oil to go to that price, the world economy would

be in total collapse. Then the demand and therefore, the price for oil would drop in response.

That will not happen because the "riggers" of the oil prices know that and won't let that happen.
They are happy to keep us just on edge of collapse while the drag in the bucks.

Once oil is partially replaced by competitively priced alternative sources, the monopoly will have been forever broken.

[pt22]

3. Problem there is that there are no alternative sources, competitively priced or not.

Not with any technology we know of at present, at least.

[ladjf]

4. My statement was "Once oil is partially replaced by competitively priced alternative sources"

.

The parity is very close now and there has no significant effort to develop or support the technology in the U.S. In fact, the oil, coal and nuke industries are spending large sums to discourage the use
of alternate sources.

"Once" doesn't mean now. But, if the U.S. would attack the task as the did the flight to the moon,
it could be done in 10 to 15 years. Note that even if alternate sources on cut the oil demand by 15%, it would be enough to start a drop in oil prices.

There is no sensible reason for the U.S. to delay the development of alternate energy. That, of course, will never happen as long as the Republicans are in power and the fossil and nuke corporations are controlling our energy policy.

Kick the crooks out of Washington and good things will begin to happen including a drop in oil prices.

[Double T]

2. Fastest way to completely destroy the USA WITHOUT firing a single shot.

wall street will WILL the $250.00/barrel price and assist in america's final destruction. This energy Armageddon is bushco's entire legacy.

[ladjf]

5. If oil made it to $250, it would be short term due to the collapse.

Then they wouldn't be able to get $30 a barrel. I don't think that is going to happen.

[Double T]

6. Don't ever underestimate the leaches of wall street.

They are capable of EVERYTHING!

[ladjf]

7. I share your skepticism about the wall street gang.

However, if the economy collapsed as a result of bankrupting transportation, it would be beyond the
control of any oil price "riggers" on Wall Street or any others.

Because they know the result of a collapse, they will not continue to drive the industries to failure. I predict that oil will not go beyond $150, at least not for any sustained period.