15 May 2011


Re the analogy of the U.S. opening its own "store" (representing increased oil drilling in the U.S.): I ask, who is it who opens the new store? The proprietors of the new store opened it to sell on the market to anyone who walks in the door, not only to people in the neighborhood. Unless there is a law that requires dedicated sales to the neighborhood, then the store has opened on the global market. It is NOT a neighborhood store operating in a restricted sales area. In case of shortage of items to sell, the new store will sell to those who can pay the higher prices. The new store does not have loyalty to the neighborhood; after all, it is a business, not a charitable organization. The United States does not produce oil; oil corporations produce oil. So, in the analogy, the U.S. does not open the "store." 

Unless the U.S. passes laws requiring oil sales only to the neighborhood (to the U.S), then a global store it is. True, OPEC is instrumental in setting global prices (and insuring a steady supply), and the oil corporations (even the ones who are ostensibly "American") seem to be happy about that. The issue of control is an interesting one. By the way, nowhere do I say that OPEC does not have a stranglehold over the people of the U.S.; indeed it does (with "our" consent because "we" do not pursue serious policies of alternative energy sources), but, importantly, the stranglehold comes with the collusion of ostensibly "American" oil corporations. How are they any different than an Arab sheikdom? I believe it would be no different if all the world's oil were in hands of oil corporations, instead of a mix of private corporations and nationalized companies such as the ones in Brazil, Venezuela and other South American countries, Mexico, Russia, Nigeria and other Sub-Saharan countries, countries in Central Asia, India, Malaysia, and the Middle East. 

My point is that the pretense of the "U.S." increasing production is a myth because the "U.S." does not produce oil. If the people of the U.S. want some control over supply (but pricing would still be very difficult to restrict to a single country), then the U.S. government should nationalize the "American" oil corporations, giving back control to the country, and run them perhaps something like TVA. 

Otherwise, it is not an Arab sheik to whom we bow, we kowtow also to BP, Chevron, Exxon-Mobile, and the like. I am not bashing the oil corporations. They are what they are, operating on a global market. This latter fact is impossible to counteract, unless there is change in ownership.

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