Well on Sunday I decided to change my routine, clicked on the Drudge Report to start my day and the written in the largest font possible was “Iran decides to shut off oil to Britain and France.”
Well good morning to the American Media for this report.
Why does this move by Iran come as a shock to the majority of Media is shocking in itself, but it’s the spastic response by the Media that’s driving the rage for action in the US.
Media opinionators and Con-talkers are already calling for “O” to jump in and push Iran harder, stiffen the sanctions and some even want military interference. Seriously, people want military interference in Iran with addition of those in Congress that want military interference in Syria as well? The US cannot afford any more wars!
Let’s consider the fact that the Brits & French only import only 1% of their oil from Iran. Only 1% and the US get less than Zero.
Here’s a fact, the U.S. Top 15 Oil importers are (in order): Canada, Mexico, Saudi Arabia, Venezuela, Nigeria, Iraq, Colombia, Russia, Algeria, Angola, Kuwait, Brazil, Ecuador, Norway, and United Kingdom.
Truly, if anything when worrying about Oil imports, the US should worry more about the African Nation’s the most, with all the unrest and rebellion constantly evolving over there, that loss of production would hurt the most.
By Monday afternoon, Oil was trading at $105/barrel, higher more by speculation then output, because India jumped in and said they’ll buy what is not being imported to the Brits & French.
And how many more people will jump in and start trading on Oil futures tomorrow morning or the next day?
Already the Media is running reports about $4.25/gallon in California and comparing Iran’s actions to 1973 Oil Embargo.
First, THAT’S CALIFORNIA where everything costs more due to outrageous taxes.
Secondly, there are large differences by comparing 1973 to 2012.
The Oil Embargo of 1973 hit the US suddenly, government had no true plan. Oh and let’s through in it was a Republican president at the time as well, just in case people forget US History.
The 1973 embargo had to do with OPEC wanting to control cost and produce less. America was a different time in 1973, with monster gas guzzling vehicles, a population that went to the big city to work and no internet.
Now in 2012, cars are more fuel efficient and many jobs can be done from home through internet access. As most corporations have moved away from downtown areas where public transportation is accessable, it’s not that hard for most employers to create a “32” work week, meaning 3 days in office and 2 at home, or even vice verse.
The biggest issue will be making sure many reserves are moved toward the trucking industry so produce, milk and so on can still make it to the grocery stores.
Iran’s actions truly play into the US political arena as well, as we’ve already revisited the Keystone XL pipeline debate with the last 24 hours.
Here’s the deal on the Keystone XL Pipeline, it is all speculation as well.
The original proposal did not say anything about Canadian oil being sold in the US and Keystone even said it wasn’t promising it would either. What the pipeline would do is bring some 270 million barrels of Canadian oil to the market, of which wouldn’t touch the market for another year or so.
Oil refineries are running at 75% right now and there’s truly no plan for any of the oil companies to build new refineries. So adding more barrels may over saturate the market, enough to stop the price at $105/barrel, it won’t produce anything at the pump.
So as the Limbaugh’s, Hannity’s, McCain’s cry for some military interference and remember what happened to Iraqi oil they so desperately said was “ours.” The reality was it was contracted to China.
Slap the tap, pour the Guinness and squeeze the oil off the chips, it’s time to pay the political tab.