OPEC, US and OIL

Technology, Military power, Nuclear weapons….yes all these things can make a country a superpower but we are missing here one of the most important thing on which the current politics and strategy are based upon. Energy reserve and for making our topic focused, we will be discussing about oil.

According to International Energy statistic, US oil reserve is 26.544 bb(billion barrels), Venezuela- 297,570 bb, Saudi Arabia- 265, 910 bb, Canada- 173,625 bb, Russia- 80,000 bb, India- 9,043 bb. According to the OPEC share of world crude oil reserve, Venezuela holds 24.8 %, Saudi Arabia- 22.1 %, Iran- 13.1 %.

Military actions by US in Iraq, Russia in Ukraine, all these things have one thing in common, oil.

Talking about America and how it is going to continue its domination in the coming years, oil is being considered as one of the main weapons. With latest technology and money, they are increasing their oil production to an amazing level. With the current trend, U.S will become energy independent by 2020. New technology could make Texas oil field, 2^nd largest in the world. U.S will also surpass Russia and Saudi Arabia in oil production by 2015. According to Prudhoe Bay fact sheet of British Petroleum, Prudhoe Bay is one of the largest oil field in U.S and North America.

A topper of a class doesn’t only searches for books and studies for long hours but he also keeps an eye on which books his competitors are reading. So to reach on the top position, increasing your own capabilities is not the only factor but you must check and if possible make an effect on your competitors’ performance also. Yes, this is the strategy being adopted by US to become a leader in Oil reserves and production.

 One of the current examples of this is the announcement by US that it is going to sell 5 million barrels from its strategic petroleum reserve. Strategic petroleum reserve is an emergency stock. There was no any need to sell from strategic petroleum reserve. They have stated it as a test sale but the real reason behind this is Russia. After Russia’ attack on Ukraine(which is a hub of energy resources), US took this step of selling from strategic petroleum reserve to push down global oil price by $12 a barrel which bring Russia about $40 billion loss from oil and gas. It is a clear indication to Russia that “we control the price”. The reserve of US is largest stockpile of government owned emergency crude oil.

   

Other than Russia, there are OPEC countries. OPEC countries include the highest oil producing countries of the world. It was formed by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela which was later on joined by Libya, United Arab Emirates, Qatar, Indonesia, Algeria, Nigeria, Ecuador, Angola, and Gabon.

Now we will be discussing about US’ relation with some of the OPEC countries.

After 9/11 attack, relation between US and Saudi Arabia got worse.  Although, Saudi Arabia and US have been allies with Riyadh being given powerful military protection and in return US being rewarded with secure oil supplies but things aren’t going that well.  Saudi Arabia says that US failed to support them during Bahrain uprising.

"When it comes to the Saudi-American relationship, the White House should be called the 'White Tent.'"
- Mohammed Al-Khilewi, a Saudi diplomat who defected to the United States.

US attacked Iraq, claiming for WMD. White House spokesperson said it as an imminent threat. According to the Congressional Record: January 28, 2004, It was told that Iraq will launch WMD though unmanned drones called UAVs but no UAVs, no WMD was found there. When Saddam Hussein sabotaged oil wells, Lt. Gen. David Mckiernan said “we need to attack because it will cause environmental threat”. Ok, that’s good, if you are thinking about environment so much, but what will David Mckiernan say about these losses in Iraq war

Iraq family health survey- 151,000 violent deaths,

Iraq body count-105,052 violent civilian deaths and do dig these numbers of graves, US put $ 1.7 trillion in war.

President of Venezuela Nicolas Marudo thinks that President Obama wants to assassinate him and also accused US of funding the opposition and giving activity guidance. During Chavez’s rule, he called Bush the devil during 2006 speech to US. Venezuela expelled 3 American diplomats from Caracas and in return US expelled 3 Venezuelan diplomats from Washington.

 Talking about Iran, U.S secretary of state John Kerry said about war if diplomatic talks fail. Iran military also said that they are ready for war with US. Recently two Iranian warships headed towards U.S waters, which is being considered as a message from Iran that they can reach easily to US.

 The crux of all this US relation is “either be my friend or get ready to die”.

Don’t get surprised when US will be dominating the world on the basis of energy reserve and countries having resources will also be dependent upon US for approval of operations. The world is changing and allowing new ways to become the superpower and the supreme leader.