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War for Oil? Who really supplies all Oil to the USA!!
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by Barry Artiste | May 17, 2008 at 07:07 am
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Barry Artiste, Now Public Contributor
Certainly strange why Bush would be asking Saudi Arabia to increase Oil production, when it is a Fact that Canada can, will, does provide the majority of Oil to the tune of 90% + as compared to a paltry 10% Saudi Arabia supplies to our neighbours to the South, makes me wonder if perhaps George's minions have not apprised him of this fact?
Certainly George Bush's "War for Oil" stance beginning with the Iraq war to save the Saudis from invading Iraqi's didn't make much sense either. But then, I am sure there are reasons for that invasion decision, most of us do not understand, though Cheney as Haliburtons Bestest Pal making a killing on the lives of American Soldiers seems plausible.
The US gets cheaper gas, because of the North American Free Trade (NAFTA), surely you all remember Hillary and Obama stating they would scrap NAFTA? One wonders why they would do this? Oh wait, perhaps it is that Saudi Arabia own the majority of the USA in their Buying your Deficits, and of course the Saudis certainly do not like competition, who needs their Petro Pricing guidelines holding us hostage? When North America can make our own, especially since it is only a gas tank drive away from the Northern US to Canada. Below is a new story on the Saudi's buying of the American Debt. Just one of the few Countries like China who do the same in order to maintain sway and a stranglehold on the American people. You should know these countries buying of the US debt in the trillions, allows pensions and services to be paid to Americans, for it this debt were called in by the Saudis, the US economy would collapse into total chaos.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/19/bcnsaudi119.xml
The Biggest reason I feel why America is in Iraq, is Saudi Arabia's fear of an Iraqi Invasion, by insisting the US as it's Debtor maintain control of Iraq, allows Saudis to remain free, but Free isn't Free, Petro dollars aside, when the US have to Borrow Billions from the Saudi's to protect the Saudi's. Why does the US have to borrow money to protect their Saudi Banker? You would think the Saudi's would gladly be giving the US the money and not ask for this US War Chest to be repaid, but for some Bizarro Reason, the US uses the Billions of dollars it borrows from the Saudis to protect the Saudis. To be repaid back to the Saudis with interest. HELLO !! Am I missing something here? Since Canada supplies USA wIth all their Oil, is their really a need to say We are at War for Oil, when the fact is We are the Saudi's personal unpaid Mercenaries? The US have always said they wish independence from Arab Oil, surely Canada has provided that independence, limited only to refinerys capacity to process it.
If the US want lower Gas Prices, they should be looking North for relief, though Canadians pay much higher gas prices at $5.00 a gallon, than their American brethern at $3.65 a gallon. As it stands the US consumption of 23 Million Barrels of Oil a day, can and will be supplied by your neighbour to the North, with token amounts from Saudi Arabia as a good will gesture. I say Token, because in all reality, Canada, can take up the additional 10% slack Saudi's supply, just on the "oil fume recovery" from our Oil Fields and Wells alone. The US certainly do not need Saudi Oil, and this story tries to explain why!
SHARM EL-SHEIK, Egypt - U.S. President George W. Bush said Saturday that the Saudis' modest increase in oil production is "something but it doesn't solve our problem" of soaring gas prices.
Taking note of the kingdom's recent decision to raise production by 300,000 barrels a day, the president said the United States must act, too, to ease the gasoline crisis. He mentioned steps such as developing alternate fuels, improving conservation and expanding domestic exploration.
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Barry Artiste
Vancouver, Canada
Most RecentMost Recommended Comments (7)
at 07:24 on May 17th, 2008
Barry -- Perhaps, you should have done more research on the issue. Had you done so, you would have discovered that Saudi oil production has a great deal larger impact on world oil prices than does Canadian production. Because you didn't do the research, your contention is rendered null and void.
at 08:12 on May 17th, 2008
Yeah, you keep believing that BMC, Saskatchewan, Canada's untapped Oil reserves eclipse Saudi Arabia's,this, not to mention Alberta, Canada’s Oil sands and now Newfoundland, Canada off shore drilling Bonanza. Land O Goshen!! Soooo, since you and Bush seem to be in the same intellectual league. I will provide a tidbit of inconvenient truth, just for you okay, stop me, if I am going too fast for ya, okay? Of course, before ever commenting negatively on any story, one such as you, really, really needs to do research, that is why they call this reporting and the 5 W’s. The old saying, never open your mouth, or in your case, write a comment which leaves doubt to my Now Public readers of your intellect on these matters, certainly speaks volumes on your expertise in these matters as well. So I am providing a link to my research as well, so, Now, remember BMC, a Trillion is more than a Billion okay, so when you compare the links below, do not get all confused, I know they are Big Numbers, with even BIGGER Words, that you may not understand. So to assist you, I suggest you “Grab a pencil”, some "Construction Paper","Safety Scissors" and a Safety Helmet, wouldn't want you to fall off your computer chair now. So let's begin BMC, you should first make a spreadsheet, some charts etc, remember the pencil now in order to do the calculations, just do not jump up from your computer and run around the room with it, as a sharp and pointed pencil could poke out an eye, and it's only a fun learning experience, until someone loses an eye. Sorry for being a tad condescending, but then you started it now didn’t you!
OIL FIELDS OF DREAMS:
GHAWAR, SAUDI ARABIA
4.5 million barrels of daily production
55 billion barrels of cumulative production
125 billion barrels available for recovery
PRUDHOE BAY, ALASKA
25 billion barrels total (estimated)
10 billion already produced
13 billion classified as recoverable with current technology
OIL SANDS, ALBERTA
973 million barrels per day
1.6 trillion barrels (initial volume)
315 trillion barrels (ultimate potential)
PEMBINA CARDIUM, ALBERTA
1.2 billion barrels produced (estimated)
7.8 billion barrels of estimated reserves
1.6 billion barrels recoverable.
Source: Government of Alberta, Columbia University, EIA
all figures 2004 estimates, now BMC, this is just 2004, with 2008 being exponentially larger, Opps, betcha didn't see that one coming?
http://www.financialpost.com/story.html?id=48494677-8dea-406f-aeb4-883645eeb525
Now if there are any BIG words, you do not understand, here is a link to help you, okay?
I apologise that the National Post Business Section doesn't explain all this with colour pictures, but sometimes Big Words just make it easier.
http://www.rmlearning.com/ReadingSoftwarePrograms.htm
Thanks for dropping by.
at 09:41 on May 17th, 2008
Barry Artiste, I like this story. It's good stuff.
Funny thing Barry is that the US enjoys some of the cheapest gas in the world. The longer they try to artificially hold their prices below real world prices the bigger the hit to their economy in the long run. Imagine unleashing the US entrepreneurial spirit on alternative energy if gas were $8.00/gal?
The US SHOULD be the most energy efficient economy in the world. Today it is one of the least efficient. They have the investment capital (even if they have to borrow it), the research facilities and the capitalist drive to succeed in any field they choose. But since gas is sooo cheap there the single most important ingredient is missing....incentive.
One day they will be brought kicking and screaming into the real world and oil shock will take on a whole new meaning! In the mean time they will buy our oil to drive their single occupant gas guzzlers from their suburban spralling ranchers to their jobs, Wal-Marts and gun ranges all the while cursing the oil producing world for their troubles. Wake up people this isn't the practice round.
at 13:35 on May 17th, 2008
So True EastVan, incentive is the key, the US have no equals when it comes to innovation in anything they put their minds too. But I blame it solely on Politicians who fail to inform the citizens of the US of other alternatives out there. It's common knowledge since the late 1970s in our Petro-Canada Oil Sands in Alberta that we were supplying tons of oil to the US, with more and more every year, reaching damn near sole supplier status a scant decade ago. Analysts state, Alberta and Sask, pretty much have an in-exhaustable supply of oil, perhaps lasting hundreds of years, unfortunately Oil Sand extraction pollutes big time injecting steam into the frozen ground to release the oil for market.
Though Gore, stated many truths, he too knew of Canada as the sole exporter of oil to the US and conveniently left that out in his speech, as well as many other truths. Makes one wonder what else he was hiding from the American public? Do the American Public really know that Bill Clinton and Al Gore adamantly refused to sign Kyoto and Clean Air when they were in power? Especially when they had the means to do so! How's that for an "Inconvenient Truth". Gore knew if he had agreed to Kyoto, Green house gases, global warming he would not have had a Diddlers Fart in getting elected to the presidency, though he lost to Bush anyways. Goes to show you, what some will resort to in getting votes. As for the US being held hostage by Saudi Oil Markets and Pricing Guidelines? It is a self imposed Hostage Crisis by Politicians serving their Saudi Financial Masters. There is no reason to be a hostage when it is clear Saudi needs US Muscle more than we need their Oil.
Anyways thanks for the Comments, much appreciated
at 16:58 on May 17th, 2008
Did I say I really like you all to the north?
at 17:24 on May 17th, 2008
No, you did not, but it is appreciated, one US Dollar at a time my friend!
at 13:18 on June 23rd, 2008
First off, that trillion (with a "T" and not a "B", I know) is a possibility, not a known fact. And, in the future, it might turn out to be true. But that is just speculation and, unless T. Boone Pickens or some other oilman is reading this thread, I don't think anyone here is qualified to say that the whole 315 trillion barrels (JESUS! I'm moving to Alberta for the royalties!) will be ready anytime soon.
Next, I would like to direct everyone to a fun chart done by the Financial Times that details who produces, consumes, and where oil goes throughout the world (CHART HERE!). I also wrote a little about this (which can be found... HERE!). And here's an excerpt about where America gets it's oil from (numbers from 2006):
OK, so Canada is responsible not for most of America's oil but is responsible for 11.18% of America's oil (as of 2006, maybe something has changed that, I doubt it differs much). America produces around 25% of the oil we use (we even export over a million barrels per day). The region from which we get most of our oil is South and Central America. Canada is roughly equivalent with the Middle East.
Back to the amazing oil sands in Canada. According to a CBS article published in 2006 (about ten months before Barry's Financial Post article):
Obviously, this is exciting stuff. It could keep oil flowing for a long time.
Wait, what? There's more information coming in. This from Alberta's government's energy site.
Again, according to the Financial Time's Chart about oil the world used more than 80 million barrels per day in 2006. And, unless the Chinese, Saudis, and everyone else who has bought all of America's debt up calls in their debt and throws the world economy into a centuries long depression, I'm guessing that oil consumption is only going higher. It might suffer a little blip because the last year didn't and the coming year doesn't look good for economies, but the trajectory is still pretty much in tact. Oil consumption is going up.
I'm not saying this stuff to imply that I don't think Alberta is a great place (I mean with all the caribou and Yetis it must be AWESOME!) but, at least from my vantage point right now, I just don't see it as a cure all anytime soon. But there is a ton of money to be made there (TRILLIONS OF BARRELS OF OIL JUST SITTING ON THE GROUND - well, technically in it, whatever) and, even though they are Canadians I'm sure there are some of you motivated by the dollar enough to exploit this situation.
One last thing, just to make me a more popular guy I'm going to rain on your Saudi bashing parade a little here. Most days I would be with you on the whole "the Saudi's suck" train, but not in this situation.
According to the Financial Times' chart, the Middle East is responsible for about 40% of the world's total exports of oil (and, yes, I know that Suadi Arabia isn't the whole Middle East, but can you, off the top of your head, name ten other Middle Eastern countries? I can). That's a pretty large amount. The next closest is the "Former" Soviet Union at about 14%.
When you factor in the fact that the Saudis hold a huge sway within OPEC (which isn't just the Middle East, but some other gigantic oil producers like Venezuela) you begin to get the picture why they are important to the oil market. I mean, it is pretty much a monopoly. And, acting as a monopoly, they can pretty much dictate prices (because they control, to a large extent, how much oil is produced worldwide).
So, even if we did get 90% of our oil from Canada, the fact of the matter is that a bunch of guys we don't like do control the thing we cannot live without. If we weren't friendly with some of these nations we would be totally screwed. Prices are determined on the global market and OPEC (Saudi Arabia) decides those prices.
For an illustration look at what would happen to America if the Middle East stopped exporting oil to us: we would lose over 2.2 million barrels a day of oil. That's over 10% of what we use. That would destroy our economy. And, luckily, it would destroy everybody else's economy as well. That fact alone calms me down.