The ‘Wisdom’ of U.S. policy in the Mideast

by Robert Anderson on Tuesday, December 20, 2011

1) The oil sanctions we’ve applied to Iran, Iraq & Libya benefited them greatly. This restricted their oil production into $20/bl-type economics. They’ll soon be producing these same resources into $150-200/barrel prices.

2) The Qadhafi regime we overthrew in Libya was anti-al-Qaeda. They probably won’t be anymore!

3) We overthrew Hussein in Iraq. With a majority Shiite population, their politics have since shifted away from the U.S. and toward their neighbor Iran.

4) Iran is unacceptable so we are tightening the sanctions there. This will drive up the price of oil. Iranian oil flows will shift from west to east.  It formerly flowed to the Mediterranean. The 3 biggest EU debt crisis countries Greece, Italy & Spain- were also the biggest recipients of Iranian oil in Europe. At the apex of the EU debt crisis, they will now scramble for higher cost alternatives. Any benefits from austerity programs will then flow to oil producers.

5) Saudi Arabia & the other GCC members (UAE, Kuwait, Qatar, Bahrain & Oman) will be the biggest benefactors of tightened Iranian sanctions and this Mideast policy. al-Qaeda & extremist Wahhabism gets nearly 100% of their funding from Saudi Arabia & these GCC countries (as confirmed by State Dept docs & Wikileaks).

6) The U.S. will continue to spend as much money on protecting oil flows, fighting al-Qaeda and ‘defense’ as the rest of the world combined.

7) Hubris & ….

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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 December 20, 2011, in Uncategorized. Bookmark the permalink. Leave a comment.

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