IEA stops oil shipments to US
- From: "s_knight8" <s_knight8nospam@xxxxxxxxxxx>
- Date: 17 Nov 2005 01:02:12 EST
Commentary on the Flux of Events
November 9, 2005
Remarks by James Howard Kunstler
Author of The Long Emergency
The American public's failure to pay attention reached supernatural levels
this week as our mass media gloated over falling gasoline prices -- down 24
cents, average, to pre-hurricane levels. The news media took this to mean
that all the end-of-the-summer trouble is over with and things can now get
back to normal, including especially an economy based on trade in suburban
houses.
What they failed to notice is this: since the hurricanes shredded our Gulf
of Mexico oil and gas capacity, Europe has been sending us 2 million barrels
of crude oil and "refined product" a day from its collective strategic
petroleum reserve. The "refined product" includes 800,000 barrels of
gasoline, plus diesel, aviation, and heating fuel. Meanwhile, US domestic
production has fallen to around 4 million barrels of conventional crude a
day. America uses close to 22 million barrels of oil a day. Bottom line:
post-hurricane, total imports have accounted for 80 percent of America's oil
consumption..
Now, the important part of all this is that last week the International
Energy Agency (IEA), Europe's energy security watchdog, declared that it
would now end the 2 million barrel a day shipments to the US. Not because
they are hateful meanies, but because, after all, it is Europe's strategic
reserve and they can't sell it all to us because, well, some strategic
emergency might come up for them, too.
It will take a few weeks for the last of Europe's tankers to offload
supplies and for the various fuels to work their way through the US fuels
retail system. With US production and refining still crippled, we can look
forward to watching the price of gasoline, heating oil, diesel and aviation
fuel kick back up through Thanksgiving and on into the heart of the
Christmas shopping season. At the same time, homeowners will be getting
their first substantial heating bills of the season.
This will be very bad news to the guys in charge. The Hooverization of
George W. Bush will resume and accelerate.
Meanwhile, the new uprising of Islamic youth in France shows no sign of
letting up and, in fact, is growing in both intensity and venues. If it
continues along the same upward arc, the authorities may soon start making
martyrs out of the young car-bombers. The action could spread to Holland,
England, and elsewhere across Europe. The potential for wider scale
insurrection and systematic terror operations such as bombings is obviously
huge. Anybody can get instruction in bomb-making off the Internet now.
People and materials move easily over a united Europe with fewer border
controls than in the old days.
Europe knows it can ill-afford antagonizing the Jihadi factions beyond its
borders. With the North Sea oil fields depleting at rates as high as 20
percent a year, Europeans have little local production to fall back on if,
say, regular tanker shipments of Middle Eastern oil through the Suez canal
were to be interrupted for some reason. England's methane gas production is
at especially alarming low levels.
Europe -- France and Germany in particular -- have enjoyed the luxury of
laying back since 9/11 and allowing the US to rumble with the Islamic world,
while the Europeans enjoyed a comfortable sense of moral superiority about
their supposed peaceableness. Those pretenses seem to be reaching an end. So
now that Europe has gallantly spent down its strategic petroleum reserve for
our sake, it will be interesting to see how soon they may need it
themselves.
I wouldn't venture to guess whether the young rioters of France are getting
help and encouragement from somewhere outside, but there certainly are
enough Jihadi professionals and cheerleaders on the sidelines to support
this new frontal action in Old Europe. It is going to be an interesting
holiday season all around the western world.
.
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