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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (91501)	10/5/2007 5:35:45 AM
From: elmatador	Respond to of 206121

An oil investor today would be looking to oil, not as a plain commodity, but as a strategic/national security commodity. That's the way the US government is looking at it. This is not made too obvious to avoid emboldening the US enemies, nor alarm the population. Once we look to oil under that perspective, lots of actions of the US government start to make sense. Oil independence may never be achieved but it is, and will remain, a US goal. The goal of making that dependence economically bearable. Oil is highly politicized. With the likes of Chavez, and Ahmadinejah, it is necessary to safeguard the oil sources. The country has the means to do that. Give you an example. What for the man in the street looks like a vote-buying action; it makes sense once you look to the issue under the perspective of Straigh of Hormuz blocked with the fleet inside with no possibility to get help via the sea. Through it passes 17 million barrels daily. Blocking the Strait of Hormuz would "probably be the biggest single energy security risk to the world,” Look to the scramble to build alternative pipelines. The US needs to put in place actions to keep the economy going along as a conflict is resolved. It may never be needed, but it is necessary to have countermeasures and back up capabilities. Give you an example: Early 2005 I brought to the attention of this thread 02Disesel. Message 21764881 Today is a pilot project of the Dept. of Defense in Nellis AFB and Air National Guard Facilities in Nevada. This is a sign of alternative fuels being explored. Note that the strategic oil reserve is not going to be enough. That thing is not going to replace a fraction of the whole fuel consumed, will be the automatic reaction. Yes. We know that. But that is not the main goal. The goal is to show countermeasures and back up capacities to the enemies of the country. Talking about glut of ethanol is trivial. The country's capacity of producing it is being tested. It now has a volume of ethanol that can be used as strategic reserve. That's why we get the 54c tariff on Brazil's ethanol. Dollar for dollar the US would be importing cheaper sugar-based ethanol. It will drop that 54c once the need arises in a moment of crisis. What the donkeys in this thread don't know is that: "approximately $161 billion would be gone from US GDP in one quarter" if the Straight of Hormuz is blocked. Of course the pipeline can solve the problem. But they cost money (which will be passed to the cost of oil); time and you need to secure a pipeline too. Also note that changes in the government also can stop a pipeline. Oh! but blocking the straight is suicide one would say. (I know the kind of guys we have here) Really? Why do you think we've got rationing of gasoline here in Iran? If Iran attacks first and block the straight -as specialists call a 'strategic ambush'- Iran will retain the initiative and it is estimated Iran has enough for one year of offensive warfare. Why do you think Bush listed the Revolutionary Guard as terrorist organization and want to weaken it? The Revolutionary Guard Corps suggest Iran should block the Strait of Hormuz in the Persian Gulf. Stressed the influence Iran has in its ability to control the strait making it a world power since 40% of the international economy's oil passes through there on a daily basis. He continued that it, "allows us to weigh on the world economy and confront potential U. S. pressure." Now I have to put up with a lot of crap down here, because the people's shallow knowledge of what drives the damn commodity and are clueless of what geopolitics is.