Anti-Neocons

Commentary
Reason.org
May 5, 2006

Energy independence isn't a good national security strategy
By Shikha Dalmia

As the nuclear stand-off with Iran helped push oil prices to near-record levels, President Bush once again declared, "Dependency on oil creates an economic problem for us, and it creates a national security problem for us."

But if Iran's behavior makes the case for anything at all, it is that America should become more – not less – "dependent" on foreign oil. In fact, the best way for America to defuse the so-called Middle Eastern oil weapon is by purchasing even more oil from the region.

The economic case for energy independence has always been nonsensical. It is not possible to shield American consumers from rising prices at the pump simply by replacing foreign oil with domestic oil. Why? Because regardless of where the oil is produced – Oman or Oklahoma – its prices are set by the global market.

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''the infant is not bold without divine aid''

The argument that American needs to protect itself from those big, bad Arabs by not buying their oil is idiotic in more ways than one.

The oil prices went and stay high because the oil companies are raking in a fortune and have been over the last few years, now more than ever.

The big money in oil, as in everything, is not in the commodity so much as it is in marketing and distribution. From what I have been told, the oil companies have chosen not to build as many refineries, which, I would guess, makes it more expensive at the consuming end.

American has been in the uniquely advantageous position of being the biggest consumer and the Middle East oil countries the biggest supplier.
The relationship should have been pretty easy. Despite Israel's constant abuse of the Palestinians, the Arab states have pretty much continued to sell the oil and sell it cheap.

Now with China and India coming onto the market, and the relentless assault against Arab countries on the flimsiest of excuses, that might change.

Americans are foolish in the extreme to sit by idly as their government ruins their relationship with the rest of the planet.

It seems to me that where ever people get their oil from it causes dependence on other groups of people outside ones area, causes huge transportation costs and pollution.

Far better to buy a diesel and run it on locally produced biodiesel. And this is all something we can do without getting on our knees and begging the state to look after our fuel supply for us. Localism and decentralisation seems like a good approach for happy, free and sustainable (lasting) economies. Notice how Shikha Dalmia labelled divine individuals, "American consumers". Is that an insult or what?