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arch13 · 10-31-2004, 09:27 PM

I started this thought in another thread, but felt it important enough to start it's own thread.

As the United States has little oil producing capability of it's own, we are dependent on South America for a great deal of natural Gas and the Middle East for our primary source of liquid crude.
Most oil companies in the middle east act as middle men and provide favored tading status to US oil companies in exchange for technology and know how. Many Middle East countries require that all oil extraction companies be owned by a citizen, but allow the citizens to work for campanies of international reputation.

Given that ownership is rarely in the hands of a multi-national then, and on the rare occasion that it is , is such only on paper, what futures does this set-up hold?

For one, those oil feilds owned my American/Multinational companies could be seized by the local goverments at any moment. These same governments could expel American/Multinational business men seeking trade. Both these actions would raise the cost of crude signifigantly.
More simply, OPEC could simply decide to punish us with a majority descion to limit US oil sales and put US orders at a lower priority. Some of these fall perfectly within their right and are not Illlegal acts. This is their national resource, not ours, and we have no right to object to whom they choose to trade with, and in what priority. Further, short of war we have little recourse to objecting to the servering of binding production contracts with US companies.

In short, OPEC could choose to stop trading with us if they so felt the need, or to punish us. I have little doubt that countries like China and India would step in to fill demand in our abscence.

If OPEC trade with the United States was servered by it's member nations, would this be grounds for war?
Do you feel that this would be unfair?
Are you of the opinion that if we lost OPEC as a trading partner, this would justify exploring and extracting what little crude remains on US soil and ocean bed, regardless of place?

Lets try something new and not mention either Presidential Candidate in this discussion. You can make a good argument or discussion without mentioning them, I promise.

10-31-2004, 09:27 PM	#1 (permalink)
arch13 Loves my girl in thongs Location: North of Mexico, South of Canada	US citizens and Oil policy changes I started this thought in another thread, but felt it important enough to start it's own thread. As the United States has little oil producing capability of it's own, we are dependent on South America for a great deal of natural Gas and the Middle East for our primary source of liquid crude. Most oil companies in the middle east act as middle men and provide favored tading status to US oil companies in exchange for technology and know how. Many Middle East countries require that all oil extraction companies be owned by a citizen, but allow the citizens to work for campanies of international reputation. Given that ownership is rarely in the hands of a multi-national then, and on the rare occasion that it is , is such only on paper, what futures does this set-up hold? For one, those oil feilds owned my American/Multinational companies could be seized by the local goverments at any moment. These same governments could expel American/Multinational business men seeking trade. Both these actions would raise the cost of crude signifigantly. More simply, OPEC could simply decide to punish us with a majority descion to limit US oil sales and put US orders at a lower priority. Some of these fall perfectly within their right and are not Illlegal acts. This is their national resource, not ours, and we have no right to object to whom they choose to trade with, and in what priority. Further, short of war we have little recourse to objecting to the servering of binding production contracts with US companies. In short, OPEC could choose to stop trading with us if they so felt the need, or to punish us. I have little doubt that countries like China and India would step in to fill demand in our abscence. If OPEC trade with the United States was servered by it's member nations, would this be grounds for war? Do you feel that this would be unfair? Are you of the opinion that if we lost OPEC as a trading partner, this would justify exploring and extracting what little crude remains on US soil and ocean bed, regardless of place? Lets try something new and not mention either Presidential Candidate in this discussion. You can make a good argument or discussion without mentioning them, I promise. __________________ Seen on an employer evaluation: "The wheel is turning but the hamsters dead" ____________________________ Is arch13 really a porn diety ? find out after the film at 11. -Nanofever