October 30, 2004

Michael Klare, Blood and Oil B

The Dangers and Consequences of America=s Growing Petroleum Dependency

(Metropolitan/Henry Holt, New York, N.Y.), 2004

The Argument

AResources, not differences in civilizations or identities, are at the root of most contemporary conflict@ (p. xii).

AMy most crucial findings had to do with the centrality of cheap and abundant petroleum to the vigor and growth of the American economy and to the preservation of a distinctly American way of life@ (p. xiii).

The Major Oil Producers:

Country Proven Reserves

(billion barrels, 2002)

The Major Oil-Producing Countries (p. 19)

Saudi Arabia 262

Iraq 113

United Arab Emirates 98

Kuwait 97

Iran 90

The AAlternative Eight@ Countries* (p. 117)

Venezuela 78

Russia 60

Nigeria 24

Mexico 13

Kazakhstan 9

Azerbaijan 7

Angola 5

Colombia 2

* Countries listed in the 2001 National Energy Policy as those whose reserves are of potentially great advantage to the United States (p. 115).

The Problem

AThe United States now relies on imported petroleum for more than half of its total consumption of 20 million barrels a day.... More and more of our imported oil will be coming to us from countries that are unstable, unfriendly, or located in the middle of dangerous areas (or some combination of all three@ (pp. xvi and 17-18).

AIt doesn=t take a vivid imagination to grasp the essence of America=s energy predicament: only the Middle East and other regions that have long suffered from instability and civil unrest have sufficient untapped reserves to satisfy our (and the world=s) rising petroleum demand in the years ahead@ (p. 20).

The Policy

1. Saudi Arabia:

AIn 2001, the first and possibly most formidable challenge facing the United States was preserving the status quo in Saudi Arabia@ (p. 84).

AThe administration=s nervousness can be traced to secret U.S. intelligence data suggesting that the Saudi royal family=s hold on power was far more tenuous than the absence of any overt opposition movement might suggest.... Saudi Arabia had become a scene of social, economic, political and religious ferment.... These [and other] factors added up to the hornets= nest that U.S. intelligence officials discerned in late 2001@ (pp. 86 and 89).

AVigorous action [was required] on several fronts. The United States would have to vacate its combat bases in Saudi Arabia, bring the Arab-Israeli imbroglio to some sort of resolution, and persuade the Saudi leadership to rid the ruling class of corruption, and crack down on terrorists and terror-linked charities. But each of these imperatives was fraught with problems@ (p. 90).

ABut, however frustrated American officials may find themselves at the creeping pace of change in Saudi Arabia, they cannot afford to remain aloof B not as long as the United States relies on steady supplies of Saudi petroleum@ (pp. 93-94).

2. Iraq:

AIn 2001, the Bush administration identified two major policy goals with respect to the oil-producing nations of the Persian Gulf: a substantial increase in oil output, and an improvement in the security climate@ (p. 94).

AThe administration immediately initiated a high-level review of the containment strategy and other aspects of U.S. policy toward Iraq. It turned up some disturbing findings.... The widespread suffering provided Saddam with a powerful propaganda tool: by portraying the country=s misery as the product of a campaign against the entire nation, rather than the regime, he was able to generate substantial popular support@ (p. 95).

AThat large numbers of people in the Muslim world had turned against the sanctions was creating yet another problem for the United States...@ (p. 96).

ABy 2001, Iraq was barely capable of producing 2.5 million barrels of oil per day B less than half of its potential capacity@ (p. 96).

AThe corrosion of the sanctions system presented American officials with a serious dilemma@ (p. 96).

AWhen American forces... entered Baghdad, they quickly occupied the Oil Ministry B protecting this one facility against looters while (in a widely reported public relations disaster) ignoring the wholesale destruction of other government buildings in the vicinity@ (p. 101).

ANevertheless, key elements of the oil infrastructure were badly damaged by the looting and violence that erupted in the days immediately following the collapse of the regime.... The persistent sabotage also prompted the Department of Defense to take greater responsibility for protecting the infrastructure@ (p. 101).

AWhile the American forces were struggling to protect pipelines and refiners against attack, the American occupation authorities were installing the new leadership of Iraq=s oil industry@ (p. 102).

ABut while [deciding which firms will be invited to invest] may solve Iraq=s short-term problems, [it] leaves unanswered a much bigger question: what to do with Iraq=s prodigious >greenfields,= or undeveloped reserves?@ (pp. 103-104).

AAmerican occupation authorities will have to resolve the question of how much self-rule Iraq will actually be allowed to enjoy after the formal transfer of sovereignty on June 30, 2004@ (p. 104).

AAnd this leads to a final dilemma: before large-scale drilling projects can proceed in Iraq, the United States must quell the violence that continues to rack the country@ (p. 105).

3. Iran:

AThe Bush administration=s ultimate goal in Iran is the same as it was in Iraq: a change in regime@ (p. 105).

AWashington remains deeply worried about Iran=s potential threat to the outflow of oil through the Strait of Hormuz...@ (p. 107).

AA replay of Operation Iraqi Freedom in Iran is not... a realistic scenario.... What other options does Washington have?@ (p. 108).

AWashington=s patience is diminishing as its concern over nuclear weapons and its desire to open up Iran=s oil sector to outside investment grow@ (p. 112).

4. The AAlternative Eight@ Countries:

AMost of [the >Alternative Eight=] countries... suffer from corruption, crime, and political unrest. Mexico=s Pemex (Petroleos Mexicanos), for example, loses up to $1 billion a year in bribes and payoffs to company officials and union bureaucrats.... The situation is even worse in Nigeria.... Corruption is also a problem in Angola.... Venezuela owes its disappointing production rates not to corruption but to political unrest.... Corruption, crime, and turmoil are all plentiful in the Caspian Sea republics.... [In Russia], the 2003 arrest for financial irregularities of the chairman and CEO of the Russian oil giant Yukos, Mikhail Khodorkovsky, is widely viewed as a blow to outside investment...@ (pp. 123-125).

AFive of [these countries] B Angola, Azerbaijan, Colombia, Nigeria and Russia B have undergone civil wars or ethnic conflicts in recent years; the other three B Kazakhstan, Mexico and Venezuela B have had riots, strikes, or other forms of political disorder@ (pp. 126-127).

Consequences

A[The] deployment of American combat forces around the globe is going to place an enormous drain on our economic, military, and political resources.... Politically and morally, the price will be just as steep@ (pp. 182-183).

AIs it really worth it? Will the advantages of abundant petroleum outweigh economic, military, political and moral costs?.... For those who believe that fundamental values B and the safety of our young men and women in uniform B take precedence over material advantage, the only answer is no@ (p. 185).

The Solution

ALet me propose an alternative approach, one that has a chance of freeing us from our deepening dependency, from dangerous and immoral foreign commitments, and from the deceptive promise of independence: a national energy strategy of autonomy and integrity@ (p. 186).

Autonomy: ABy autonomy, I mean a situation in which we have acquired the self-reliance and freedom of action to extricate ourselves from the pernicious effects of petroleum dependency.... We would have to find the will to say, >No,= to any conditions B whether in the form of diplomatic or security obligations B that come attached to the oil we want to buy@ (p. 186).

Integrity: ABy integrity, I mean a state of affairs in which we make decisions on energy policy in accordance with fundamental American values and with a view to the nation=s long-term interest.... Integrity also entails respect for the environment and, much more important, for the needs of future generations@ (p. 186).

A AParadigm Shift@

AAmericans have experienced paradigm shifts before. Not so very long ago, few people saw anything reprehensible about tobacco smoking in public; today, most Americans support legislation to ban smoking in public places. So we are perfectly capable of major alterations in our thinking@ (pp. 187-188).

ASmall but influential groups of clergy... have begun to portray the profligate consumption of petroleum as an offense to God=s creation. >What would Jesus Drive?= is the message affixed to placards carried by a coalition of Christian and Jewish religious leaders who have been lobbying officials of the Big Three automakers to boost the fuel-efficiency of their vehicles@ (p. 188).

AThe sole way to become less dependent on imported petroleum is to practice energy self-restraint@ (p. 193).

Alternative Energy

AThe widespread introduction of hydrogen-powered fuel cells may achieve [large] reductions in petroleum use.... [These] cells can keep operating for almost as long as their fuel source B hydrogen B is renewed; and since hydrogen is the most plentiful element in the known universe, its supply is limitless.... [Hydrogen] probably holds the most promise for replacing oil with an abundant, affordable, and non-polluting source of energy.... [But] hydrogen does not exist in a pure state in nature [and] is expensive to generate.... It has to be extracted from other materials, such as coal or water.... Producing hydrogen may require large amounts of fossil fuels, either as raw material or as a source of energy for the process itself B thereby defeating the whole purpose@ (pp. 196 and 198-199).

Critique

AWe are really Better@: The contrast between the description of the United States as a society (highlighted in the present document by printing pertinent phrases in small capital letters) and the description of other countries (highlighted in the present document by printing pertinent phrases in bold letters), is striking. Only the United States has Aworries,@ Aproblems,@ Adilemmas,@ Afundamental values@ and decision-making power. Other countries are pictured only as full of violence, instability, political unrest, crime and corruption.

The author=s reference to the AArab-Israeli imbroglio@ is particularly offensive. This Aimbroglio@ started in 1948, with the proclamation of the state of Israel on Palestinian land, leading, in 1967, to the occupation of most of Palestine by Israel. All of Israel=s moves have had the support of the Western powers which have perpetuated the Aimbroglio@ for their own advantages.

Iraq: The section on Iraq is particularly distasteful:

The Second Gulf War: The author makes no mention that our 2003 invasion of Iraq was an illegal war of aggression which has caused many thousands of innocent Iraqi casualties B in fact, 54 times the normal death rate, most of the extra deaths being violent deaths, and of these most being due to coalition aircrafts, according to a recent study published this week in The Lancet. The study found at least 100,000 excess civilian deaths in the two years after compared to the two years before the invasion (Free Speech Radio News; Roberts, Les, Interview; Roberts, Les, The Lancet).

The U.S.=s Goals for Iraq: The author repeats blandly, without comment, AIn 2001, the Bush administration identified two major policy goals with respect to the oil-producing nations of the Persian Gulf: a substantial increase in oil output, and an improvement in the security climate.@ This from an administration that would have us believe that its intention is to institute democracy in Iraq!

Iraqi Suffering a Propaganda Tool for Saddam: The author alleges that the Iraqi people are not able to distinguish between our campaign against the regime and a campaign against the entire nation. I suppose he means that if they could tell the difference, the Iraqis might bear their suffering more stoically...

Anger against the Sanctions a Problem for Us: The anger of the Muslin world against the sanctions is described as a problem for the United States B the author never mentioning that 12 years of the most stringent sanctions ever imposed on any country, might have been a slightly bigger problem for the Iraqis...

Iraq an Invalid: By saying that Iraq was Abarely capable@ of producing at less than half of its potential capacity, the author paints a picture of an infirm Iraq, a country surely, therefore, in need of U.S. help for the Aprotection@ of its oil infrastructure, deciding the future of its undeveloped reserves, and quelling of the persistent violence B this latter is now called Asabotage@ instead of a resistance movement in a country under occupation.

The Needed Paradigm Shift: The author=s comparison of ceasing the tobacco smoking in public places with the paradigm shift that would be needed to wean ourselves from oil B including giving up our imperialistic ambitions for the control of both earth and space B is naive and misleading. The economy of the United States runs on oil, including its production, services, transportation, food and agriculture, heating and cooling, and most of all, its military sector (Heinberg pp. 169-180). To demand self-restraint where there has been no evidence of self-restraint in the past seems illusionary.

Hydrogen: The author=s analysis of alternative energy supplies is weak. After stating that hydrogen holds the most promise for replacing oil with an abundant, affordable, and non-polluting source of energy, he does admit that producing hydrogen requires large amounts of fossil fuels, thereby defeating the whole purpose of producing it. The author seems confused. Hydrogen is not a source of energy. It is a way to store energy.

Richard Heinberg explains:

AThere are no exploitable underground reservoirs of hydrogen. Usable hydrogen has to be manufactured from hydrocarbon sources, such as natural gas or coal (a gallon of gasoline actually contains more hydrogen than does a gallon of liquid hydrogen), or be extracted from water through electrolysis.... The crux... is this: The process of hydrogen production always uses more energy than the resulting hydrogen will yield. Hydrogen is... not an energy source but an energy carrier@ (Heinberg, p. 146).

Notes

the Small capital type is mine B to highlight the author=s description of United States society.

The bold type is also mine B to highlight the author=s description of other societies.

References

All unspecified page numbers refer to:

Klare, Michael, Blood and Oil B the Dangers and Consequences of America=s growing Petroleum Dependency (Metropolitan/Henry Holt, New York, N.Y.), 2004.

In the Section, ACritique@:

Heinberg, Richard, The Party=s Over B Oil, War and the Fate of Industrial Societies (New Society, Gabriola Island, BC, Canada), 2003.

Free Speech Radio News, KGNU, Boulder, CO, October 29, 2004.

Roberts, Les, Interview with Amy Goodman, Democracy Now, WBAI, New York, N.Y., November 1, 2004.

Roberts, Les, Riyadh Lafta, Richard Garfield, Jama Khudhairi and Gilbert Burnham, AMortality before and after the 2003 Invasion of Iraq B Cluster Sample Survey,@ The Lancet, Vol. 364, No. 9445, October 30, 2004.

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