OIL CRISIS

LOCALLY...

OPEC , IOB, peak oil..these terms are no longer bombastic words that you hear from an economic professor. Since oil price hike hit us common people hard, and since oil stimulates resource wars ( or rather, U.S ) in Middle East, oil becomes the central point to every discussion in town. Locally, two previous demos protesting the oil price hike signifies the hardship this crisis is bestowing on us. We are talking about the rise of fuel price for transportation, cooking oil and food products, plastics...you name it. It is a major blow to us as we try to adjust our already low-income difficult life to the oil price hike. Understandably, all of us greeted our govt. `s advices to save and avoid extravagant spending ( very) unfavorably because we`ve been there, done that. What about them? Would the govt. kindly checked their previous policies and strategy of governance and see whether there is any way of saving the tax payers money for time like this rather then overspending it on artificial monuments for patriotic sake or megaprojects ( read: F1 Formula, Putrajaya, Twin Towers). Maybe inculcating transparency and social justice a bit in ways of how the powers that be do their job would be helpful during these trying times. Sure, lifting subsidy to deter over dependency on government sounds "right" but may the rakyat ask " at whose expense?", "for whose benefit?".

INTERNATIONALLY...

As U.S, #1 in the list of states in high demand for oil, gears up for an attack on Iran, we see the global crude oil supply threatened by "peak oil". This is the fundamental problem that leads to the scarcity of oil in the world today. We have limited resources for energy, all the easy wells has been tapped and whatever left on the planet is the "object of desire" in resouce wars notoriously spearheaded by U.S. The more reason for U.S to attack Iran. Apart from Iran`s decision to set up IOB in their region plus fixing the oil price in Euro, U.S is desperate because all along they realized how Iran can save their ass. According to Michael T.Klare in his essay "Oil, Geopolitics and the Coming of War with Iran", Iran houses the second largest pool of untapped petrol in the world, an estimated 125.8 billion barrels. Although Saudi Arabia possesses larger reserves, it is now producing oil at close to its maximum sustainable rate.

" ...It will probaly unable to raise its output significantly over the next 20 years while global demand, pushed significantly higher consumption in the Unites States, China and India, is expected to rise by 50%. Iran, on the other hand. has considerable growth potential:it is now producing about 4 million barrels per day but is though to be capable of boosting its output by another 3 millions barrels or so....Iran `s importance as a producer, already sinificant, is bound to grow in the years ahead."

Not only oil, Iran also owns a large reserve of natural gas. Estimated at 940 trillion cubic feet of gas or 16% of total world reserve, Iran is only beaten by Russia in the list. Geopolitically, Iran also sits athwart the Strait of Hormuz, the narrow waterway through which 40% of the world `s oil exports pass. A strategic location plus a potential future energy equation, Iran resembles a beautiful virgin that U.S wish to deflower AND THEN marry. Unfortunately, U.S can't ask for the bride `s hand of marriage due to the Executive Order 12959 signed by Clinton and renewed by Bush in 2004. The Order prohibits U.S from working with Iran in developing their oil and gas supplies. As U.S loses in the competition to get the woman he wants, other suitors such as Sinopec (China), GAIL (India) plus Pakistan are already "engaged" to Iran. I personally think it is not surprising that now, U.S wants to "help" India to build their nuclear power. Perhaps the plan of constructing a natural gas pipeline from Iran to India via Pakistan which the 2 adversaries at last have something to agree on just irked U.S to the core. As much as U.S tries to justify their action of toppling another one of the"Axis of Evil" as preventing the construction of WMD/Nuclear in Iran, the whole world sees OIL painted on Bush `s forehead.

To read Micheal `s T Klare`s article, check http://www.commondreams.org/views05/0411-21.htm.