Among the unchallenged verities of U.S. politics, the most universally accepted is that of the crucial strategic and economic significance of oil, and particularly Middle Eastern oil. On the right, the need for oil is seen as justifying an expanded and assertive military posture, as well as the removal of restrictions on domestic drilling. On the left, U.S. foreign-policy is seen through the prism of “War for Oil,” while the specter of Peak Oil threatens to bring the whole system down in ruins.
The prosaic reality is that oil is a commodity much like any other. As with every major commodity, oil markets have some special features that affect supply, demand and prices. But oil is no more special or critical than coal, gas or metals—let alone food.
Let’s start with some numbers. The United States currently uses about nineteen million barrels a day, of which about eleven are imported, mostly from within the Western Hemisphere. Imports from the Persian Gulf supply about 15 percent of total U.S. oil demand, a share that has declined over time.
No comments:
Post a Comment