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The Summer Oil War: It's Coming

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Bloviating Zeppelin: The Summer Oil War: It's Coming

Bloviating Zeppelin

(in-ep-toc'-ra-cy) - a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.

Tuesday, January 17, 2012

The Summer Oil War: It's Coming

Now may be the time for Americans to consider storing their larger SUVs, pickups and luxury vehicles in lieu of horses, bicycles or small cars -- or becoming independently wealthy.

Some experts are predicting anywhere from $5 to $10 per gallon gasoline in the United States by the summer, if Iran has its way and somehow either blocks or mines the Strait of Hormuz, or by any other means attempts or succeeds in blocking the flow of oil from the Middle East to other points on the globe -- to include, of course, the United States.

Oddly enough, at this time, the #1 export of the US is refined fuel. We are able to export this refined product because national consumption has decreased.

That said, we import the massive bulk of our crude oil.

Iran has already threatened to block the Strait of Hormuz.

US military representatives agree that Iran has the power to do this, which would impact not only US energy flow, but global energy flow as well. The US military indicates it has the ability to take steps to re-open the Strait of Hormuz choke point.

But would Obama even make that decision in the first place or, as he has expressed frequently, would he simply be "concerned" and "monitor" the situation?

Iran has made another statement with regard to the world's fuel supply:

CAIRO (AP) - Iran warned Gulf Arab oil producers against boosting production to offset any potential drop in Tehran's crude exports in the event of an embargo affecting its oil sales, the latest salvo in the dispute between the West and the Islamic Republic over its nuclear program.

The comments by Iran's OPEC governor, published Sunday, came as Saudi Arabia's oil minister was quoted the same day denying that his country's earlier pledges to boost output as needed to meet global demand was linked to a potential siphoning of Iranian crude from the market because of sanctions.

World oil markets have been jolted over concerns that Iran may choke off the vital Strait of Hormuz in retaliation for sanctions hampering its ability to sell its oil. Saudi Arabia and other key Gulf Arab producers have recently said they are ready to provide stable and secure supplies of oil.

Iran's official news agency IRNA said Sunday that the U.S. has relayed a message to Iran about security in the Strait of Hormuz. It gave no details, and there was no immediate comment from Washington.

The U.S. recently imposed sanctions targeting Iran's central bank and, by extension, refiners' ability to buy and pay for crude. The European Union is also weighing an embargo on Iranian oil, while Japan, one of Iran's top Asian customers, has pledged to buy less crude from the country.

Mohammad Ali Khatibi, Iran's OPEC governor, was quoted Sunday by the pro-reform Shargh newspaper as saying that attempts by Gulf nations to replace Iran's output with their own would make them an "accomplice in further events."

"These acts will not be considered friendly," Khatibi said, adding that if the Arab producers "apply prudence and announce that they will not participate in replacing oil, then adventurist countries will not show interest," in the embargo.

The point tips, my friends.

This may not end well.



Blogger Old NFO said...

Suffice to say, if Hillary et al are kept out of the way, this will be 'fixed' in short order by C5F.

Tue Jan 17, 09:14:00 AM PST  
Blogger Well Seasoned Fool said...

Informative article at DEBKAfile

If Israel hits Iran with a preemptive strike, our military folks in the area will be in harms way. The question will be if their Commander in Chief......ah, we are all just talking to ourselves.

Tue Jan 17, 10:11:00 AM PST  
Blogger "Shady" said...

BZ, you are right on target. No doubt we can re-open the straight, but my question is, will we? I have no idea which way we go on this. Another issue will we have to go at it alone, or do other's jump in as well. This could get very ugly quickly. This could be nasty.
However it's our economy at stake here. We just need to drill here at home and screw the middle east.

Great Post

Tue Jan 17, 03:37:00 PM PST  
Blogger Bloviating Zeppelin said...

NFO: who or what is C5F?

WSF: I'll go check out the link, thank you.

Shady: thanks for the kind words. And yes, you are CORRECT, we have all the oil and natural gas we could possibly want right underneath our national feet. We lack the WILL to take advantage of this and sever at least a portion of our deadly link to the Middle East.

And if Israel strikes Iran?

Oil chaos as well.


Tue Jan 17, 04:02:00 PM PST  
Blogger mrchuck said...

This lying bastard negroid president of ours has now said NO to the Canadian Keystone pipeline that would bring Canadian crude to Texas for refining!
Obummer should be tarred and feathered and run out of town on a rail.
I know, I know, that tar and feathered is well redundant for an already half black president.

We need crude oil, and here it is on our own Continent, and Canada has given us 1st pick to have it.
China is standing by to buy all the oil Canada has.
Damn that bastard Obummer.
This black arab muslim puppet, born somewhere else is doing this on purpose because his communist handlers told him to do this!
Every day we are getting close to another "civil war" in this Republic.
It's about time to say,,,Bring it on Socialists.

Wed Jan 18, 02:04:00 PM PST  
Blogger Bloviating Zeppelin said...

MrC: all too true. See my Thursday post on this.


Wed Jan 18, 03:12:00 PM PST  

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