Energy is the lifeblood of the American economy. Cut off the flow of
energy and the economy will die. For this reason, energy independence
is a matter of national security.
National Security
President Obama
“At a time of such great challenge for America, no single issue is as fundamental
to our future as energy. America's dependence on oil is one of the most
serious threats that our nation has faced. It bankrolls dictators, pays
for nuclear proliferation, and funds both sides of our struggle against
terrorism. It puts the American people at the mercy of shifting gas prices,
stifles innovation and sets back our ability to compete.”
—Address given at the White House January 26, 2009
Why is energy a national security issue?
“Our entire economy depends on the expectation that energy will
be plentiful, available, and affordable. Nations like Venezuela and Iran
can use oil and gas as political and economic weapons by manipulating
the
marketplace. Half of our trade deficit goes toward buying oil from abroad,
and some of that money ends up in the hands of terrorists.”
—General
James Jones is a retired United States Marine Corps four-star general.
From July 1999 to January 2003, General Jones was the 32nd Commandant
of the Marine Corps. After relinquishing
command as Commandant, he assumed the positions of Supreme Allied Commander,
Europe (SACEUR) and Commander of the United States European Command (USEUCOM).
General
Jones was appointed National Security Advisor to the
President on January 20, 2009.
The United States
consumes 20 million barrels of oil every day
The U.S. economy has become dangerously dependent on foreign oil.
The United States consumes 20 million barrels of oil products every day.
— 14 million barrels per day consumed for transportation fuel.
— 9 million barrels of the transportation fuel is
gasoline.
The United States imports 6 million
barrels of crude oil per day from OPEC nations.
Replacing petroleum fuels (gasoline and diesel) with non-petroleum alternative
fuels would completely eliminate dependence on OPEC oil—and set an
example for the world to follow.
American Energy Independence will be achieved when all cars, trucks
and buses on U.S. highways — boats, ships and barges on U.S. waterways — aircraft
flying U.S. airways — trains on U.S. railways — and off-road recreational,
construction and farm vehicles, are powered by transportation fuels made
in the USA
from U.S. resources.
The 1973 Arab oil embargo interrupted the flow of oil causing
severe gasoline shortages and long lines at gas stations. The embargo
exposed America's
growing oil dependence and gave the American people their first warning
of the price they would pay for continued dependence on foreign oil. The
1979 Iranian revolution interrupted the flow of oil again — this
was the second warning, signaling the urgent need for American energy independence.
The 1991 Persian Gulf War was a military intervention to stop one dictator
from taking control of Middle East oil — this was the third and most
severe warning.
September
11, 2001 was not another warning; it was a preview of America's
future — one
possible future.
Following the September 11th terrorist attack, the United States
found itself standing at a crossroad of history,
facing a choice
between
two very
different futures. One choice would lead the country to increased dependence
on
foreign oil and a future dominated
by terrorism and war. The other choice would lead to American energy independence
and a world economy that is no longer desperate for oil.
On March
20, 2003 the United States
chose a direction that led to war, the death of
over 4,000 U.S. soldiers, increased dependence on imported
oil, and a huge national debt.
March 20, 2003 the
price of oil was $26 per barrel. Five years later, March 20, 2008
the price of oil had risen to $100 per barrel. Then, during July
of 2008 the
price of oil hit $147 per barrel, with a weekly average of $130.
From September 2007 through October 2008, the world economy was
rocked by the unprecedented transfer of more than one trillion dollars
from European,
Asian and American economies into
Middle East national treasuries in exchange for oil.
And then... the global Financial Market collapsed. The high price
of oil was the straw that broke the back of the international financial
system,
exposing a global portfolio of uncollateralized receivables that had
been growing for
many years, hidden within layers of esoteric financial products called
derivatives.
Between 2003 and the summer of 2008 the price of oil increase more than
500 percent (from $26 to $147) because of market fears. War in the
Middle East and threat of a nuclear armed
Iran intensified worldwide fear of an oil supply interruption — fear
of a global oil shortage produced the market speculation responsible
for pushing oil prices to $147 per barrel during the summer of
2008.
Fear of a global oil shortage added a “fear
premium” to
the cost of oil, inflating the cost of oil on the world market
by over three trillion dollars per year above the 2003 price. The
increased cost of oil caused an additional three trillion dollars
to be taken out of
consumers' pockets worldwide—to pay for oil products: transportation
fuels. Three trillion dollars that was no longer available for buying
other products and services. Global business stalled, jobs were cut,
and consumers stopped spending.
The dramatic rise and fall of worldwide oil prices exposed the insidious
influence of unregulated commodity speculation.
Clandestine trading on the world commodity
market caused the price of oil to spike to a level that would result
from a terrorist attack on a major oil production facility or supply
line.
The world's dependence on petroleum has increased significantly since the
1973 Arab oil embargo, and military tension in the Middle East has escalated
into war. This is not saying
that
the war in Iraq was only about
oil, but it would be naive to think that the United States military would
be in the Middle East if there were no oil.
Without oil at the
center of the conflict there would be
no U.S. Military operations in the Middle East—and there would
be no oil wealth to finance terrorist ambitions.
Is there anyone who still cannot see the connection
between the flow of oil money into the Middle East and the flow of terrorism
out of the Middle East?
“Starting in the late 1980s—after the dual shocks of the Iranian revolution and the Soviet war in
Afghanistan—Saudi Arabia's quasi-official charities became the primary source of funds for the
fast-growing jihad movement. In some 20 countries, the money was used to run paramilitary training
camps, purchase weapons, and recruit new members.
The charities were part of an extraordinary $70 billion Saudi campaign
to spread their fundamentalist Wahhabi sect worldwide. The money helped
lay the foundation for hundreds of radical mosques, schools,
and Islamic centers that have acted as support networks for the jihad movement..”
—The Saudi Connection
By David E. Kaplan, U.S.News & World
Report
“Exactly how much the Saudis have spent to spread Wahhabism
is unclear.” David D. Aufhauser, a former Treasury Department
general counsel, told a Senate committee that estimates went north
of $75 billion. “The total spent annually is
between $2 billion and $2.5 billion,” he said.
Wahhabism
is a fundamentalist Islamic movement that has its roots in the extreme
Islamic Takfiri
ideology, which is a religious belief that encourages its followers
to use violence as a means to achieve their goals.
The global economy
trades its wealth for Middle East oil enriching the sponsors of terrorism.
Ronald Reagan has been credited for defeating Communism without firing
a shot; by economically isolating and suffocating the Soviet Union, while
at the
same time enticing the Soviet leaders and people toward freedom. In
a similar way, initiating action toward achieving global independence from
petroleum
(as a primary source of energy) will lead to the defeat of oil financed
terrorism.
Try to imagine what would have happened if Europe and America had been
paying the Soviet Union one Trillion U.S. dollars every year, during the
cold war.
Next time you buy gasoline or diesel,
ask yourself the following questions:
- How much has the war in Iraq cost?
- How much does Homeland Security cost?
- How much has the war in Afghanistan cost?
- How much has the U.S. military spent policing the Middle East?
- How much did the destruction of the World Trade Center cost?
Terrorism is one of the hidden costs of imported oil.
The U.S. government spends billions of dollars paying for the hidden
costs of America's oil dependence.
Billions
of dollars
have been spent every year by the U.S. military to protect the flow of
Middle East oil into the
global market and to keep the price low. That
is no longer working. Something has gone terribly wrong.
In addition to the monetary cost of
the U.S. Military operations in the Middle East, there is the human cost.
How many American soldiers will die before the American people decide that
the price of oil is too high? Our nation's wealth, along with the blood
of American soldiers, is being drained onto the sands of the Middle East
to keep oil flowing.
|
Over 4,000
U.S. soldiers lost their lives in Iraq and
more then 30,000
wounded since the war began on March
20, 2003
|
|
“...in my opinion, there never was a good War, or a bad Peace.
What vast additions to the Conveniences and Comforts of Living might
Mankind have acquired, if the Money spent in Wars had been employed
in Works of public utility!”
— Benjamin Franklin, 1783 - quoted from a letter to Joseph Banks.
Invest in Energy Independence
|
Energy Security vs. Energy Independence
It is common knowledge that during World War II, Winston Churchill was the
Prime Minister of the United Kingdom. But most American's who are unfamiliar
with early 20th century history do not know that before (and for a time during)
World War I (WWI),
Winston
Churchill
served as the First Lord of the Admiralty for the British Navy.
It was in his role as pre-WWI First Lord of the Admiralty, that Churchill converted
the British Navy from coal-power to fuel oil, to make the fleet faster than
the
German
Navy. By doing so Churchill recognized that a new vulnerability had been created:
coal was a domestic source of fuel but oil had to be imported. Relying on oil
meant that the British Navy would, for the first time, be dependent on foreign
sources of fuel.
It was as First Lord of the Admiralty, leading up to WWI, and in the context
of the British Navy’s new dependence upon imported fuel oil, that Winston
Churchill said: “Safety and certainty in oil lie in variety and variety
alone.” (Churchill meant variety of oil suppliers.)
The phrase Energy Security, which is sometimes used today as a substitute
slogan for Energy Independence, originates from Winston Churchill's pre-WWI
comment.
The phrase Energy Independence was coined in 1974 after the Arab
oil embargo. At that time, and for most people still today, it was believed
that Energy Independence
would come from a variety of alternative energy resources, with emphasis on
developing the USA's largely untapped domestic resources:
coal, oil
shale, nuclear and renewable energy, in addition to increased oil exploration
and production in Alaska.
The striking difference between Churchill's
concept of Energy Security and the concept of Energy Independence today
is that Churchill's Energy Security required a variety of petroleum suppliers,
where Energy Independence requires a variety of energy resources—domestic
alternative resources, in addition to domestic petroleum resources.
The concept of American Energy Independence does not imply
protectionism or economic isolation. Energy Independence means energy self-sufficiency
achieved
by developing America's own alternative energy resources, and by employing
advanced technology designed to convert non-petroleum [alternative] energy
resources into transportation fuels that can replace petroleum based fuels.
The USA has an abundance of domestic “non-petroleum” energy resources
that could be developed to supply all of America’s transportation fuel.
Energy Security through Energy Independence
During the 2006 State of the Union Address, President Bush shocked Conservatives
when he said “America
is addicted to oil”
— a phrase that might have been expected of a Democrat, but when a
Republican president who is also a Texas oil man spoke those words on national
television from the
U.S.
Capital, the world knew that America's love affair with oil was over. Then, in
the summer of 2008, with oil prices breaking $120 per barrel and rising, famous
Texas
oil
man and billionaire,
T.
Boone
Pickens
launched
a private $50 million advertising campaign to convince U.S. consumers to
break
away
from
America's
dangerous dependence on imported oil.
Today, Conservatives are fully on board—alternative
energy is Patriotic—Energy Independence is finally a bipartisan
issue (although how to achieve it remains a contentious partisan debate).
The addiction metaphor dramatically exposes
America's unhealthy and dangerous dependence on imported oil. The oil itself
is not the addiction; the addiction metaphor applies to
the
behavior
of the
American
people who willingly accept dependence on foreign countries to supply the
U.S. with energy—the lifeblood of the economy, and the fuel that gives
mobility to the United States military. That collective behavior is self-destructive,
similar to what is seen in addicts.
The idea of energy independence was first conceived in response to
the 1973 Arab oil embargo. The embargo abruptly cut-off U.S. oil imports
from the Middle East causing severe fuel shortages and gas rationing.
Oil prices tripled, the price of gasoline quadrupled and a new American
vulnerability was exposed — America’s dependence on imported
oil as a primary source of energy proved to be a weakness that could
be exploited to influence or subvert U.S. foreign policy; threatening
to disrupt the economy and eventually impoverish the USA by transferring
billions of dollars to foreign national treasuries in exchange for
oil.
The idea of energy independence was not a myth then, nor is it a
myth today. Energy independence is a fact of America’s past
and a vision of America’s future. An achievable goal requiring
sustained political will. The USA has more than enough natural resources,
ingenuity and technology to achieve energy independence… again.
Yes, again.
Prior to 1950 the U.S. had absolute energy independence. In 1950
the USA was producing over 50 percent of the world’s oil, enough
for all of its own needs with plenty left over for exports. But the
post World War II U.S. economic boom eventually created demand for
more oil than U.S. wells could produce.
Between 1950 and 1973 (the year of the embargo) U.S. oil imports
had grown from near zero to about 32 percent of U.S. oil consumption.
By 1994, the U.S. was importing more oil than it produced. In
2010, oil imports will provide about 60 percent
of all oil consumed in the USA.
Energy independence does not require zero imports, but it does require
zero dependence on imports that could directly or indirectly place
the U.S. in a position of economic, political or military vulnerability. Energy independence can be thought of as either absolute or strategic.
Absolute
energy independence means a country produces all of its
own energy, which was true for the U.S. prior to 1950.
Strategic energy independence means a country allows imported
energy, but only if the imported energy does not create vulnerability.
Strategic energy independence allows oil imports, but does not
allow the imports to create economic, political or military
vulnerability.
In order to understand
the difference between absolute and strategic independence,
it
is important to recognize that
importing a commodity does NOT create dependence. Dependence
only occurs when the imported commodity creates vulnerability
for the importing nation. In order for a commodity to create
vulnerability, the commodity must be of strategic value regarding
its potential to injure the importing country economically or
militarily, if the exporting country deliberately cuts off supply.
Strategic energy independence can be achieved through an alliance
of nations that share mutual interests. Economic and military
interdependence between nations can produce a powerful global force
for good, but only if the members of the alliance share basic cultural
values and a commitment to protect the freedoms of their people.
There is nothing inherently wrong with energy interdependence in
regard to importing oil. But anyone who values freedom must ask:
where is the oil money going? What is the oil money being
used for? Is there a connection
between the flow of oil money into the Middle East and the
flow of terrorism out of the
Middle East?
America does not need to regain absolute energy independence; there
is no need to end oil imports from Canada. But the USA does need to
regain strategic energy independence… again.
America did achieve strategic energy independence in 1982. In spite
of some failures, the energy independence policies enacted by Presidents
Nixon, Ford and Carter eventually succeeded, culminating less than
ten years after the oil embargo. A fact often overlooked, misunderstood,
denied, or maligned.
Clearly, there is a story to be told.
Energy independence skeptics will often claim that every U.S. President
since Richard Nixon has called for energy independence yet nothing
has come of it, just populist demagoguery, they say, citing
skewed statistics that show oil imports steadily increasing, unabated,
since
1973. Journalists, academics and politicians will recite the
half-true information, spreading it throughout the general population,
perhaps
with calculated intent or more likely because they themselves
have accepted the disinformation as fact—similar to how smart people
can unwittingly become ensnared in an investment Ponzi scheme because
they trusted the person or source who told them about it.
It is true that U.S. oil imports in 2010 are about double what they
were in 1973. But the increase in oil imports between 1973 and 2010
cannot be accurately illustrated as a continuous upward curve on a
chart or graph.
After the embargo was lifted in March 1974, U.S. oil imports did
continue to increase until 1979 when imports were then 56% greater
than 1973 levels. But in 1980, the upward trend in U.S. oil imports
reversed and began a dramatic decline.
On June 21, 1981, the Sunday edition of the New York Times printed
an article titled; How the Oil Glut is Changing Business1 the
headline read: “Oil glut! ... Suddenly, oil is so plentiful
that prices are falling by amounts that impress even big-time corporate
decision
makers …”
The combined efforts of three U.S. Presidents created energy policies
that had doubled vehicle fuel efficiency, increased oil production
in Alaska, shifted electricity generation from petroleum fuel
oil to non-petroleum fuels and provided incentives for homes
and buildings to use
alternative heating and increased insulation. By 1980, these
policies were dramatically
reducing total U.S. oil consumption.
A steep decline in U.S. oil imports began in 1980 and continued through
1985. In 1983 U.S. oil imports fell below 1973 levels, cutting
oil imports by 58% from the high of 1979. New Alaska oil production
helped
offset falling oil production from U.S. wells in the lower 48
states, but the difference was not enough to account for the
huge decrease in imports. The only explanation that can be supported
by real
numbers
is the enormous volume of oil consumption that was displaced
by the combination of alternative fuels, increased fuel efficiency
and conservation.
The 1973 oil embargo had exposed the harsh reality that America was
dangerously dependent on imported oil. The energy independence policies
of Presidents Nixon, Ford and Carter had demonstrated that America
can achieve strategic energy independence through political will and
legislative action.
It took nearly ten years for U.S. energy independence policies to
take effect and reverse the trend of growing oil dependence,
but the results were worth the effort. For a brief period between
1982 and
1985 U.S. oil imports averaged less than 30% of total U.S. oil
consumption.2
Developing alternative energy sources (primarily coal, nuclear and
natural gas to replace petroleum fuel oil used for heating and
electricity generation) and keeping oil imports below 30% of
total oil consumption
had
broken the
Organization of Petroleum Exporting Countries (OPEC),
and ultimately exposed OPEC’s vulnerability: dependence on oil
money.
The USA enjoyed strategic energy independence between 1982 and 1985.
But then, in 1986 U.S. oil imports began to increase again. Why?
By July 1986 the price of oil had fallen below $9 per barrel. Ronald
Reagan was then President of the United States. President
Reagan had abandoned the energy independence policies of his
predecessors in favor of a free market policy, where private
industry would
provide all of America's energy needs without government interference.
In 1986, gasoline was plentiful and relatively inexpensive. Middle
East oil prices were low. Without a national energy independence
policy, the temptation to return to old habits was just too
great. Like a
recovering alcoholic taking a drink after a long rehab, the
American economy began falling back into dependence.
If the energy independence policies of Nixon, Ford and Carter can
be thought of as analogous to a relay race in the Olympic Games, where
each President hands the baton off to the next, sharing a common goal
of winning the race, then President Reagan did not just drop the baton,
he threw it away and canceled the race.
President Reagan was elected in 1980 and assumed office January 1981,
in time to reap the rewards of energy independence which were
already beginning to dramatically reduce U.S. oil consumption.
Reagan had the opportunity to finish the race and fulfill the
vision of strategic energy
independence
for all generations of Americans, but instead, he abandoned
his predecessors’ energy
independence policy and encouraged a return to oil
imports.3
President Reagan did continue to give voice to the vision of energy
independence, not by way of a national
energy policy, but an independence that would result from unleashing
the productive capability of the free market, thus leading Americans
to believe that the free market would supply all of
America's
energy needs. And perhaps that would have happened if the Reagan
administration had adopted the proposed price floor guarantees
for American energy companies investing in the development
of America's abundant oil shale
resources.4
By 1982, investors already could see that the price of oil on the
world market would soon fall below a level were shale oil would
be economically competitive without some form of government support.
President Reagan had argued in favor of price floor guarantees
in
the form of offering long-term purchase agreements with the
U.S. military for synthetic fuels made from U.S. shale oil, but Reagan's
advisors
convinced him to abandon the nascent U.S. synthetic fuels industry
as a demonstration of his faith in a global free market. After
learning that Reagan would not support the industry, Exxon abandoned
its billion
dollar oil shale investment in Colorado.
The U.S. Synthetic Fuels Corporation was created by Congress in 1980
for the purpose of helping to fund private synthetic fuels
investment in America. The Synthetic Fuels Corporation Act
authorized up to 80 billion dollars,
a figure often cited as the actual cost to U.S. tax payers.
However, before it was abolished in 1986, the U.S. Synthetic
Fuels Corporation had cost the U.S. taxpayers less than what
the U.S. military spent every
month in 2009 for the Iraq war.
Reagan had justified his decision to end government
support for synthetic fuels based on
a projected cost of $60 per barrel for synthetic crude oil
made from oil shale, and gasoline costing $2 per gallon based
on the $60 per
barrel projected cost. America's investment in strategic energy
independence was thrown away because it would eventually force
American drivers
to pay as much as $2 per gallon for gasoline—unthinkable,
or so it seemed at that time.
Ronald Reagan's vision of a global free market, inspired by
economist Milton Friedman, created an unwritten federal energy
policy limiting the government's involvement in U.S.
energy production and distribution, including price floor guarantees.
The “limitation” assumes
that America's energy will be provided by private corporations
and individuals, acting in their own financial self-interest.
If the U.S.
government, acting in America's self-interest, becomes
involved in energy production and distribution, either directly
or in partnership with private industry, or by way of price
floor guarantees, the act is considered to be socialism, unless
it is a military action.
Reagan's global free trade policy had set the stage
for increased oil imports. Without a national energy independence
policy defining oil as a strategic commodity and energy independence
as a strategic policy, the USA was heading back into the same
dependence that previous administrations worked so hard to
overcome. Reagan's advisors refused to acknowledge the strategic
value of oil, and the vulnerability created by dependence
on any strategic commodity that is controlled by a foreign
government hostile to American values and economic
interests.
Reagan's economic advisors
had advocated the idea that importing oil would be
no different than importing shoes and socks and refrigerators.
Supporters of the idea would defend the policy with rhetorical
questions like, “Should
America want to be refrigerator independent?” as
though any reasonable person would see that a refrigerator
embargo would be no different than an oil embargo. Of course,
the American people did not fall for that nonsense, it had
escaped their attention,
because the price of gasoline had already gone back to acceptable
levels and the people had returned to their normal lives,
trusting their government to do what is right.
Contrary to the popular belief that Ronald Reagan boldly deregulated
oil prices and thereby increased production of oil in the
U.S., President Reagan—after assuming office in January 1981—merely
accelerated, by executive order, the phased decontrol of oil
prices that had been in
progress since June of 1979, a gradual decontrol initiated
by President Carter over eighteen months before Reagan became
President. The executive
order signed by President Reagan ended price controls abruptly,
eight months before full decontrol would have automatically
taken effect by
law, as set forth in the Energy Policy and Conservation Act
of 1975.
Decontrol of oil and fuel prices failed to stimulate a significant
increase in domestic oil production, contrary to some opinions
often heard today. However, decontrol did allow increased
imports of gasoline and other fuels, which caused the price
of gasoline to suddenly fall. It was the increased gasoline
imports that led people to believe that Reagan's energy policy
was working. The immediate relief at the pump was what people
remembered.
President Nixon had initiated price controls in 1971, before
the oil embargo, for the purpose of containing surging
inflation; a technique that was both effective and necessary
during World War II, but was
almost certainly an act of political desperation in 1971. The
Energy Policy and Conservation Act of 1975, signed into law
by President Ford, extended Nixon's
oil price controls to 1979, authorizing the President of
the United States to end
price controls in 1979 if the President determined
that ending controls at that time was in the best interest of
the country, but if the President chose not to exercise the
option, the 1975 Act specified that government control over
the price of oil would automatically cease at the end of September
1981.
In a nationally televised address on April 5, 1979, President Carter
announced a phased decontrol of oil prices that would begin June
1, 1979 and continue at a uniform rate of reduction over 28 months,
at which time decontrol would be completed, in compliance with the
September 1981 deadline required by the 1975 Energy Policy and Conservation
Act. Carter faced opposition by Unions and Congressional Democrats,
but he did it anyway. In 1980 Congress enacted the Crude Oil Windfall
Profit Tax Act to compensate for the decontrol of oil prices. On
April 2, 1980, Carter signed the Windfall Profit Tax into law.
During the 1980 presidential campaign Reagan had promised
to repeal the Windfall Profit Tax, but he allowed the tax
to continue through both terms of his presidency, until 1988 when,
on August
23, he signed the Omnibus Trade and Competitiveness Act of
1988 which finally repealed the tax.
The USA is the world's largest consumer of oil; the dramatic
reduction in U.S. oil consumption resulting
from the energy independence policies in effect following
the Arab oil embargo and prior to Reagan's presidency had
caused a surplus of oil on the world market, which ultimately
forced the global price
of oil
down.
It would be accurate to say that every U.S. President after Jimmy
Carter has called for energy independence, but nothing has come
of it, because commitments to the global economy—global free
trade policies—beginning with the Reagan administration have
discouraged the USA from “acting in its own self-interest” as
a nation.
The USA is the only country in the world that imposes that limitation
on itself. It is a self-defeating limitation reminiscent, metaphorically,
of how the British Army fought the American Continental Army
during the American Revolution, where the British soldiers stood
in the open,
on principle, wearing bright red uniforms while the colonial
soldiers shot at them from behind trees. The American colonies
won their independence
because they acted, as a nation, in their own self-interest,
willing to do whatever it took to accomplish their goal — Independence.
Imagine that the year is 1775 and Thomas Jefferson is pondering the
issue of America’s independence from Great Britain. What might
he have been thinking?
On November 29, 1775 Thomas Jefferson wrote to John Randolph; “there
is not in the British empire a man who more cordially loves a union
with Great Britain than I do. But, by the God that made me, I will
cease to exist before I yield to a connection on such terms as the
British Parliament proposes; and in this, I think I speak the sentiments
of America.5”
On December 1, 1775 American Continental Army General Charles Lee
wrote to British General Burgoyne: “You ask me, in your letter,
if it is independence at which the Americans aim? I answer no; the
idea never entered a single American's head until a most intolerable
oppression forced it upon them...6”
Now imagine that Great Britain’s
King George III has just received a signed copy of the United
States Declaration of Independence. What are his first thoughts?
How dare
they? Or, perhaps, a strategy of propaganda to convince the
rebels that independence is a myth, with grave warnings of the
“dangerous delusions” of independence.
Forward to recent history — a relevant comparison: in October
1973 OPEC oil-producing countries, led by Libya and Saudi Arabia,
cut off oil supplies to the United States causing massive fuel shortages
and unprecedented fuel prices. The purpose of the embargo was to force
political concessions from the United States. Before the embargo,
Americans had never thought of energy independence.
The Arab oil embargo
was the beginning of America’s submission to a foreign tax
in the form of commodity price fixing and resource supply
manipulation on a global scale. This intolerable oppression, forced
upon
Americans
by a foreign power, created what has become America’s quest
for energy independence.
Adobe PDF print copy
size: 410 Kb - 8 pages
Notes:
- Robert Hershey Jr. "How the oil glut is changing business".
The New York Times (June 21, 1981, Sunday, Late City Final Edition, Section
3, Page 1, Column 2).
- A Declaration of Energy Independence, Jay Hakes, chapter
2 - A Forgotten Victory Gives Hope: How America solved its last energy
crisis and cut oil imports in half.
- A Declaration of Energy Independence, Jay Hakes, chapter
3 - Lapsing Back into Oil Addiction: Retreating from Battle under Presidents
Reagan, Bush, Clinton and Bush.
- Some
Setbacks for Synfuels, By Edward E. Scharff; Robert T. Grieves; Gary
Lee, Time Magazine - Monday, Sep. 14, 1981
- The Declaration of Independence: Its History; by John H. Hazelton, Dodd,
Mead & Co., 1906
- ibid.
U.S. Electric Utility Companies responded to the threat of the 1973 Arab
oil embargo by replacing petroleum fuel oil with USA coal, nuclear
energy and natural gas to
power their generators. The USA no longer depends on petroleum
to generate electricity for the power grid. The USA is not dependent
on foreign sources of energy for electricity generation.
The U.S. Automobile industry must do
today what the U.S. Electric Utility industry did over 35 years
ago — Kick the oil habit!
Seventy percent of all oil consumed in the USA is used for transportation
fuel—gasoline, diesel and jet fuel.
American Energy Independence will be achieved when American drivers
can fill their cars and trucks with non-petroleum fuels. Today,
cars and trucks use gasoline and diesel made from petroleum. Technology
exists today that can enable all cars and trucks to
run on USA biofuels, natural gas, synthetic fuels and electricity.
ABC News
Video Report:
Over
a Barrel: The Truth About Oil — ABC News' Anchor Charlie Gibson
investigates America's addiction to oil and the severity of the security
threat in a special edition of 20/20
— A look at how the need to secure foreign oil sources shapes U.S. foreign
policy. July 24, 2009
Reference links:
1973 oil embargo
1979 energy crisis
1991 Persian Gulf War
2001 September 11th USA
2003 Iraq war - to Present
25th Anniversary of the 1973 Oil Embargo
U.S. Imports of Crude Oil — 1973 to Present
OPEC Oil Export Revenues — U.S. EIA Fact Sheet
History of Energy in the United States: 1635-2000
Recommended reading:
The
Saudi Connection — How billions in oil money spawned a
global terror network. By David E. Kaplan, U.S.News & World Report
Nexus—Oil and Al Qaeda
By Frank H. Denton, PhD, U.S. Foreign Service (Retired)
“The meteoric rise of oil revenues in the 20th century meant
a new era for Islam; oil revenues were the catalyst that converted
passive resentment into Islamic Terrorism..” Read more
Our Energy Challenge
By Nobel Laureate Dr. Richard Smalley
“Energy is the single most important problem facing humanity today — not
just the U.S., but also worldwide...” Read more
Online Documentary:
Saudi
Time Bomb
— A PBS investigation
“For more than two centuries, Wahhabism has been Saudi Arabia's dominant
faith. It is an austere form of Islam that insists on a literal interpretation
of the Koran. Strict Wahhabis believe that all those who don't practice their
form of Islam are heathens and enemies. Critics say that Wahhabism's rigidity
has led it to misinterpret and distort Islam, pointing to extremists such as
Osama bin Laden and the Taliban. Wahhabism's explosive growth began in the 1970s
when Saudi charities started funding Wahhabi schools (madrassas) and mosques
from Islamabad to Culver City, California..." Read more

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