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The Real Price of Middle Eastern Oil
Americanthinker ^ | 05AUG12 | Shoshana Bryen & Stephen D. Bryen

Posted on 08/05/2012 2:47:11 PM PDT by bayouranger

American gasoline is cheap at the pump because consumers pay only for the oil, refining, and transportation to market -- plus tax. What we don't calculate is what the United States spends to defend the oil in the ground or the sea lanes that allow it to be shipped from the Middle East. We don't calculate the perversion of American principles as we coddle dictators to ensure they don't turn off the taps. Factoring those in makes the use of imported oil for transportation fuel much more expensive and distasteful.

The Middle East accounts for about 30% of the world's oil supply (North Africa, mainly Libya and Algeria, is another 6%), with 20% of the supply passing through the Strait of Hormuz. The U.S. is the primary defender of the sea lanes, beginning with the Strait and extending through the Indian Ocean and the Pacific. Along this route, oil is delivered to India, Japan, China, and South Korea, among others. It is an enormous undertaking, costing the U.S. billions of dollars annually and having a heavy political and military impact.

Politically, it requires a potent relationship with Saudi Arabia. The Saudi government is discriminatory toward Jews, Christians, women, and foreigners. It was the original funder of al-Qaeda and continues to export an extremist ideology. But it pumps a reliable 9+ million barrels a day, which appears to balance the scales.

(Excerpt) Read more at americanthinker.com ...


TOPICS: Crime/Corruption; Foreign Affairs; War on Terror
KEYWORDS: filthykoranimals; islamjihad; opec
KING FAUD SPEAKS

"I summon my blue-eyed slaves anytime it pleases me. I command the Americans to send me their bravest soldiers to die for me. Anytime I clap my hands a stupid genie called the American ambassador appears to do my bidding. When the Americans die in my service their bodies are frozen in metal boxes by the US Embassy and American airplanes carry them away, as if they never existed. Truly, America is my favorite slave." King Fahd Bin Abdul-Aziz, Jeddeh 1993

1 posted on 08/05/2012 2:47:15 PM PDT by bayouranger
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To: bayouranger

Lefties have often complained that we “don’t pay the full price of oil”, but they are never honest. Their complaint is only a means to an end.

But if we levied an import tariff on oil and refined products, and at the same time allowed development of domestic resources including coal-to-liquids and gas-to-liquids conversion facilities, we would greatly reduce the amount of money we are sending to our Muslim enemies and it would result in more domestic jobs. If this was done in an orderly manner, the price of fuels would not rise by very much if any. I make that statement because the world price of oil is already above the break-even price for coal-to-liquids conversion.


2 posted on 08/05/2012 2:53:19 PM PDT by theBuckwheat
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To: bayouranger

A moment’s reflection (without any documentation, but with a little knowledge of geology and geopolotics) indicates that the west has made an agreement with the Middle Easters governments that the West will put up with anything that they do, if they supply the oil needed by the West.

The West appears to be incapable of drilling for oil itself and reducing that dependency and great flow of money to hostile regimes. May God have mercy on our children.


3 posted on 08/05/2012 2:58:22 PM PDT by Citizen Tom Paine (An old sailor sends)
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To: bayouranger

American gasoline is cheap at the pump
***First few words of the article — WTF? Gasoline is cheap at the pump?

Time to investigate better sources of energy. How’s that search for hot fusion going? $250B spent so far, maybe 100MJoules of energy produced. Contrast that with the alternative.


4 posted on 08/05/2012 3:04:03 PM PDT by Kevmo ( FRINAGOPWIASS: Free Republic Is Not A GOP Website. It's A Socon Site.)
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To: theBuckwheat
You are half right about the cure. Taxing imported energy is a job killer. Cheaper energy, even from imports, will make you stronger.

These steps would IMMEDIATELY lower energy prices, create jobs and put America on the road to energy independence, at least from "conflict oil".

1. Green light the Keystone pipeline.

2. End "boutique blending" gasoline.

3. End ethanol subsides and import duties on imported ethanol. If the Brazilians want to burn their food, let them.

4. Develop a program to build at least 6 "coal to oil" plants. Build them on federal lands if need be.

5. Drill everywhere. Offshore, Alaska, the Gulf, everywhere.

6. End the war on coal mining, and electrical plants running on coal.

7. Start building nuclear plants.

8. Develop thorium generation technology with the aim of building hundreds of mini generating stations to create cheap local power that is not dependent on long range transmission.

5 posted on 08/05/2012 3:05:04 PM PDT by Former Proud Canadian (Obamanomics-We don't need your stinking tar sands oil, we'll just grow algae.)
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To: bayouranger

It’s beyond oil. If foreign governments had to maintain their own navies to protect their shippers from pirates, costs would have to higher. Our NATO agreement allowed Europe to shirk its defense responsibilities and to redirect erstwhile defense spending toward socialist programs, knowing they would be protected by the US taxpayer. The US should consider making it plain to the world that our defense umbrella comes with monetary strings attached.


6 posted on 08/05/2012 3:09:32 PM PDT by Sgt_Schultze (A half-truth is a complete lie)
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To: bayouranger
Photobucket
7 posted on 08/05/2012 3:15:01 PM PDT by airborne (MY HEROES DON'T WEAR CAPES. MY HEROES WEAR DOG TAGS ! ! !)
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To: bayouranger
Mullah Ubama wants us to be their best customers.
8 posted on 08/05/2012 3:17:27 PM PDT by E. Pluribus Unum (Government is the religion of the collectivists.)
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To: Kevmo
"Hot fusion" is easy peasy Been doing that since Teller developed the Ivy Mike shot in Eniwetok. It's the "cold fusion" that's tough.


9 posted on 08/05/2012 3:24:23 PM PDT by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
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To: Former Proud Canadian

“Former Proud Canadian”
-
Great post.
Are you formerly proud; formally Canadian; or both?


10 posted on 08/05/2012 3:32:34 PM PDT by Repeal The 17th (We have met the enemy and he is us.)
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To: Repeal The 17th

Check your freepmail.


11 posted on 08/05/2012 3:37:22 PM PDT by Former Proud Canadian (Obamanomics-We don't need your stinking tar sands oil, we'll just grow algae.)
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To: Repeal The 17th; Former Proud Canadian

He’s a Canadian who was formerly proud at the time he signed up at FR, but he’s proud again now that the adults are back in charge.


12 posted on 08/05/2012 3:40:30 PM PDT by Squawk 8888 (Tories in- now the REAL work begins!)
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OPEC Has Already Turned to the Euro
GoldMoney Alert
February 18, 2004
...The source for the euro exchange rate is the Federal Reserve, and I have calculated the euro's average exchange rate to the dollar for each year based on daily data.
US Imports of Crude oil
(1)
(2)
(3)
(4)
(5)
(6)
Year
Quantity (thousands of barrels)
Value (thousands of US dollars)
Unit price (US dollars)
Average daily US$ per € exchange rate
Unit price (euros)

2001

3,471,066
74,292,894
21.40
0.8952
23.91
2002
3,418,021
77,283,329
22.61
0.9454
23.92
2003
3,673,596
99,094,675
26.97
1.1321
23.82
We can see from column (4) in the above table that in 2001, each barrel of imported crude oil cost $21.40 on average for that year. But by 2003 the average price of a barrel of crude oil had risen 26.0% to $26.97 per barrel. However, the important point is shown in column (6). Note that the price of crude oil in terms of euros is essentially unchanged throughout this 3-year period.

As the dollar has fallen, the dollar price of crude oil has risen. But the euro price of crude oil remains essentially unchanged throughout this 3-year period. It does not seem logical that this result is pure coincidence. It is more likely the result of purposeful design, namely, that OPEC is mindful of the dollar's decline and increases the dollar price of its crude oil by an amount that offsets the loss in purchasing power OPEC's members would otherwise incur. In short, OPEC is protecting its purchasing power as the dollar declines.

13 posted on 08/05/2012 3:48:28 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
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Obama bows down to Saudi King | American Thinker | April 02, 2009 | Clarice Feldman | Posted on 04/02/2009 8:19:47 AM PDT by rdb3
Obama bows down to Saudi King | American Thinker | April 02, 2009 | Clarice Feldman | Posted on 04/02/2009 8:19:47 AM PDT by rdb3

14 posted on 08/05/2012 3:48:47 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks bayouranger.


15 posted on 08/05/2012 3:48:56 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
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To: Former Proud Canadian
Good list

Let's stop talking about it and just do it

16 posted on 08/05/2012 4:03:29 PM PDT by Regulator
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To: Cyber Liberty

Is that an example of controlled fusion for energy harnessing? Or are you just plain dense?


17 posted on 08/05/2012 4:14:12 PM PDT by Kevmo ( FRINAGOPWIASS: Free Republic Is Not A GOP Website. It's A Socon Site.)
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To: Regulator
Hey, what do you want from me? TransCanada is trying to build a pipeline without any government assistance. Not "shovel ready" enough, I guess.

Another massive infrastructure program is stalled on the US side. The Canadian government is trying to build a new bridge over the Detroit River. Canada has agreed to lend the state of Michigan, which is broke, the money for their portion of the bridge. That loan will be paid back by tolls on the bridge. It will cost US taxpayers nothing.

How could there be any opposition, in economic times like these, to either of these projects? What the h*ll is going on in the US?

18 posted on 08/05/2012 5:30:50 PM PDT by Former Proud Canadian (Obamanomics-We don't need your stinking tar sands oil, we'll just grow algae.)
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To: Squawk 8888

Thank you and, yes, the adults are firmly back in charge in the Great White North. Life is a lot easier when you don’t have to worry about thieving, lying, liberal politicians. Is that redundant?


19 posted on 08/05/2012 5:35:48 PM PDT by Former Proud Canadian (Obamanomics-We don't need your stinking tar sands oil, we'll just grow algae.)
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To: bayouranger
American gasoline is cheap at the pump...

Say what?

Text of a sticker I place on the pump every time I get gas:

And the price here in 2003 was $1.24.
20 posted on 08/05/2012 6:24:53 PM PDT by upchuck ("Definition of 'racist:' someone that is winning an argument with a liberal." ~ Peter Brimelow)
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To: Former Proud Canadian

“You are half right about the cure. Taxing imported energy is a job killer. Cheaper energy, even from imports, will make you stronger.”

I understand your point, but in the broader sense, you are wrong for the reason that we are paying billions for military forces via the Treasury, which is funded by borrowing and inflating the currency. It is only honest accounting to reallocate that cost more directly on the consumers in the US who trigger that expense. It is not only more honest, it is more transparent and it will help them decide (through the political system) if the true full cost is worth it.

On your point about costs, since the median household income in the US is $52,026, then for every $1 million in unnecessary expense, we destroy the jobs held by about 20 median households. By our restrictions on domestic drilling we cause tens of thousands of jobs to be exported to countries that are not our friends, and we have to borrow from these same countries to fund 99 weeks of unemployment insurance payments for the unemployed American workers that result.


21 posted on 08/05/2012 7:50:32 PM PDT by theBuckwheat
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To: theBuckwheat
No. When you tax something, you discourage its use. In essence you are simply encouraging a net price rise to the end user. Price goes up. Who benefits other than the government tax collector?
22 posted on 08/05/2012 8:46:13 PM PDT by Former Proud Canadian (Obamanomics-We don't need your stinking tar sands oil, we'll just grow algae.)
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To: Kevmo

Dense, I guess. Or being funny. Ever heard of that? Or are you dense too?

;^)


23 posted on 08/06/2012 5:42:05 AM PDT by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
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To: Citizen Tom Paine

Yes, FDR made an agreement but it shouldn’t be honored at all. The filthy saudis are not an honorable lot.

Sleeping with the Devil: How Washington Sold Our Soul for Saudi Crude (2003)

“Saudi Arabia is more and more an irrational state—a place that spawns global terrorism even as it succumbs to an ancient and deeply seated isolationism, a kingdom led by a royal family that can’t get out of the way of its own greed. Is this the fulcrum we want the global economy to balance on?”

In his explosive New York Times bestseller, See No Evil, former CIA operative Robert Baer exposed how Washington politics drastically compromised the CIA’s efforts to fight global terrorism.

According to Robert Baer, the center of the global economy is a “kingdom built on thievery, one that nurtures terrorism, destroys any possibility of a middle class based on property rights, and promotes slavery and prostitution.” This kingdom also sits on one quarter of the world’s oil reserves, thus ensuring that it receives the full support and protection of the U.S. government. Sleeping With the Devil details the hypocritical and corrupt relationship between the U.S. and Saudi Arabia and the potentially calamitous economic consequences of maintaining this Faustian bargain.

As Baer makes clear, the U.S. has been aware of problems within the bitterly divided Al Sa’ud family for years, but has ignored the facts in order to keep lucrative business deals afloat. (The amount of money the royal family spends to influence powerful American politicians and lobbyists is staggering.) Particularly damning are his details regarding Saudi Arabia’s support of militant Islamic groups, including al Qaeda. The ruling family funnels millions of dollars to such groups in order to dissuade them from overthrowing the monarchy


24 posted on 08/06/2012 6:31:38 AM PDT by bayouranger (The 1st victim of islam is the person who practices the lie.)
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To: Cyber Liberty

Then you acknowledge that an HBomb is not an example of controlled fusion for energy harnessing.

Basically, if you really did think it was such an example then you’re pretty dense. If you didn’t think it then it was funny. You gave no indication either way. Since there are some freepers who are that dense, and you issued no sarcasm tag, there’s no indicator you were being funny.

Actually, that would be rare humor indeed, seeing an Hbomb as funny. I’m glad someone can joke about such a thing.


25 posted on 08/06/2012 9:47:39 AM PDT by Kevmo ( FRINAGOPWIASS: Free Republic Is Not A GOP Website. It's A Socon Site.)
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To: Kevmo
Then you acknowledge that an HBomb is not an example of controlled fusion for energy harnessing.

Of course I do. And, I think H-Bombs are fun to watch. Remind me not to ever come to crack wise on one of your threads again.

Obviously, If I tell what I think is a funny joke, and you're not laughing, then I'm doing it wrong. Bye.

26 posted on 08/06/2012 11:20:11 AM PDT by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
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To: Cyber Liberty

That reminds me...”Happy Hiroshima Day!”


27 posted on 08/06/2012 12:35:07 PM PDT by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
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To: Cyber Liberty

Remind me not to ever come to crack wise on one of your threads again.
***This wasn’t one of ‘my’ threads. There have actually been freepers who forwarded the HBomb as evidence of controlled fusion for energy harvesting on some of those LENR threads, so it wasn’t really all that easy to tell that it was a joke.

But again, as I said, it’s intriguing that you are able to joke about the HBomb. That’s gotta be rare.


28 posted on 08/06/2012 3:42:48 PM PDT by Kevmo ( FRINAGOPWIASS: Free Republic Is Not A GOP Website. It's A Socon Site.)
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To: Kevmo

I would not be here at all but for the appropriate used of a couple of A-bombs (one 67 years ago today), so I’m indeed strange that way. It’s also true more people died in Ted Kennedy’s car than were killed in all the H-bomb explosions lit off by the US. Can’t speak for the Russians.

I did not know people were using the H-bomb as an example of controlled fusion. That’s just plain silly. I was just making a non-joke. I was doing it wrong to boot.


29 posted on 08/06/2012 4:31:48 PM PDT by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
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