U.S. energy policy – Nov 8

November 8, 2006

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An Interview with Michael Klare

Dave Cohen, The Oil Drum
Dr. Michael T. Klare is the Five College Professor of Peace and World Security Studies at Hampshire College in Amherst, Massachusetts. One of the world’s leading experts on the energy geopolitics, Klare is perhaps best known for his history and analysis Blood and Oil: The Dangers and Consequences of America’s Growing Dependency on Imported Petroleum. Klare is a frequent contributor at TomDispatch, where he provides a welcome alternative to the mainstream media’s spoonfed pablum concerning crucial issues like America’s preemptive war on Iraq, the Iranian nuclear stand-off and the global chess game to control oil & natural gas resources.

Klare’s presentation at ASPO-USA is nicely summarized by Chris Vernon of The Oil Drum’s United Kingdom section -please read Chris’ report along with this interview. At the conference, I arranged to e-mail him some questions which he kindly took the time to answer. Subsequently, we did a follow-up interview on the phone. Both the questions and answers are presented verbatim.

…MK: The establishment and maintenance of an empire is an immensely energy-demanding enterprise. It takes enormous energy and resources to conquer foreign nations, maintain overseas garrisons, suppress rebellions, administer colonies, pay the salaries of soldiers and imperial bureaucrats, key fleets at sea, and so on. Every empire that ever was has struggled with this dilemma, and every empire that ever was collapsed sooner or later when the expense of maintaining the empire exceeded the revenues obtained from possessing the empire.

For the United States, I believe, Iraq represents that turning point: before the United States entered Iraq, it was the dominant world power and possessed the strength to exercise hegemony in almost every corner of the globe; but the Bush administration vastly miscalculated the costs of occupying Iraq (now estimated at $1-$2 trillion) and that misjudgment will so deplete the US Treasury that American will never be able to undertake such a costly imperial undertaking again — not without bankrupting the country and reducing us all to beggars.

This having been said, the reality of our altered circumstances may not penetrate the thinking of our top officials, who may falsely believe that we still enjoy our pre-Iraq preponderance of wealth and power, and so undertake Iraq-like adventures abroad that will cripple this nation forever.

…MK: Yes, I do believe that the US will conduct air and missile strikes against Iran in 2007, unless Ahmadinejad capitulates to Western demands and abandons uranium enrichment, which I don’t see happening. I think Bush did learn something from Iraq: If you’re going to invade a country because of suspicious WMD behavior, FIRST EXHAUST ALL DIPLOMATIC OPTIONS before your resort to force, so you can claim you had no choice in the matter.

…MK: Well, the fear premium [in the price of oil] was half driven by a possible war with Iran and half driven by fears of another hurricane season like 2005, with Katrina and Rita. Obviously, neither of these occurred. Had either occurred, the premium would have been justified. So what is the probability that we will go through another year with (a) no major crisis in the Middle East and (b) no big hurricanes? I can’t imagine it’s very low. And the fact is, there is very little spare capacity in the international oil equation, while demand is rising steadily. So we have to assume that from now on we will remain just one major crisis or hurricance away from another spike in prices; and if we get both of those together, we’ll have a super-spike.
(6 Nov 2006)


CLNG’s Cooper fears complacency as natural gas prices drop this winter
(video)
E&E TV
With the Department of Energy predicting the price of natural gas will be lower this winter than last, liquefied natural gas supporters are fearful this false sense of security could cause complacency in the push for increasing LNG supplies in the United States. During today’s OnPoint, Bill Cooper, executive director of the Center for Liquefied Natural Gas, makes the case for increasing LNG supplies. Cooper addresses concerns about the safety of LNG facilities and the potential for terrorism associated with the facilities. He also discusses the Coast Guard’s assessment of the proposed Long Island Sound LNG project
(7 Nov 2006)


Lower pump prices fuel political conspiracy theories

Elizabeth Douglass, LA Times
Many Americans think the recent drop is tied to the Bush administration and GOP election hopes.
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Filling the tank of his Honda Accord, Daniel Carmolinga eyed the blinking numbers on the gasoline pump with a mixture of relief and suspicion – relief that the total was significantly lower than it would have been a few months ago, but suspicion that Tuesday’s election might have something to do with it.

“It seems that always right before election time, prices go down. It may not be a coincidence,” Carmolinga said on a recent Friday as he paid $2.47 a gallon at a Shell station in Long Beach. In mid-July, the car dealership employee would have paid nearly $1 more per gallon.

…The Bush administration, many oil analysts and the industry’s primary trade group have dismissed the public skepticism as conspiracy theory run amok.

“These accusations are just silly,” said John Felmy, chief economist for the American Petroleum Institute. The cost of gas fell, he said, because “those things that caused the price to rise reversed.”

But like the two California motorists, a notable percentage of Americans believe that the recent plunge in gasoline prices has more to do with November voting than with the price of oil and other market forces, two recent polls found.

Last month, a Gallup Poll of 1,000 adults found that although a majority of those surveyed rejected the suggestion that gasoline prices were being manipulated by the Bush administration for election purposes, 42% – mostly Democrats – believed that the president was doing just that.
(6 Nov 2006)
We’ll soon see whether gas price was manipulated downward for the elections.


Tags: Energy Policy, Fossil Fuels, Geopolitics & Military, Natural Gas, Transportation