Why Is Libya in the Crosshairs of the West?

Here’s an important non-Western perspective
on why we launched another military boondoggle in the Mideast.
Its one more chapter of the ‘Great 21st Century Oil War’.

Have you noticed Iraq weapons of mass destruction was a bogus issue, and we only intervene on the Arab Spring oil exporter-Libya. Oil & a Sovereign Wealth Fund!!

As is typical, its not as simple as just controlling Libyan oil. Here’s an abreviated recap of the myriad of reasons:

~ Qaddafi was the main supporter of pricing oil -especially within OPEC- in a new gold dinar instead of dollars.

~ Huge water aquifers under the Sahara in Libya.

~ The Libyan economy was never integrated into the BIS and the Western banking system so it couldn’t be manipulated by the West. Notice we set up a Central Banking structure for the rebels very soon after fighting commenced.

~ Libyan oil is high quality sweet and onshore – so cheap to produce.

~ Qaddafi was negotiating for higher oil royalty cuts and delaying new projects for Western oil company concessions.

~ Libya had a $70 billion Sovereign Wealth Fund. Its already been seized and some of it redirected to the rebels and who knows where else.

~ Qaddafi had opted out of USAC, one of the 9 global Pentagon commands, to control Africa and the Mediterranean Basin, including the strategic energy transit routes and choke points, crucial for the world economy.

Its all the result of faulty economic theory that subordinates energy to economics when it should have been the other way around. U.S. oil production peaked in 1970. Or- to phrase this another way- we drained over half our valuable +100 million year hydrocarbon legacy into sub-$3/ barrel economics. The Brits did it in the North Sea into sub $15 oil economics. So now that we’ve figured out oil ISN’T expendable and easily replacable, its a futile scramble for what’s left. The U.S and the U.K. are the main 2 perpetrators of the ‘Great 21st Century Oil War’ in which we concoct false humanitarian reasons to try and extend our flagging  petroleum imperialism. Its a faulty strategy that’s not working- and can’t work- due to huge oil purchase wealth transfers to our adversaries and the prohibitive costs of this exorbitant militaritarization. To coin the author Paul Kennedy’s phrase, its ‘imperial overstretch’ with an oily twist.

Welcome to the new world of post peak fundamentals. Take heed. It won’t  be any fun being on the oil depleted side of this strategic equation.

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About OilisNotWell

I'm a proud, happy 4th generation Kansas Citian. I've been employed in downstream petroleum and biofuels for over 30 years. After eight years as a Refinery Rep and Midcontinent Marketing Manager at Wichita-based Koch Refining, I subsequently set up shop at the KC Board of Trade just off the Country Club Plaza. Back in the old pre-internet days, I actually launched the first faxed newsletter on oil markets in the world. It was highly regarded with 350 subscribers who were oil distributors, traders and oil industry executives. Subscription cost was $760/ year. I also worked for the Hermes Group which was the first Russian company to buy a seat on a U.S. commodity exchange (NYMEX). I wrote their international business expansion plan and traveled extensively throughout Russia, Ukraine and Eastern Europe. I've also literally worked for dozens of ethanol and biodiesel firms in the U.S. I enjoy spending our winters in Uruguay and Argentina when I can swing it.

Posted on June 17, 2011, in Uncategorized. Bookmark the permalink. Leave a comment.

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