A new approach to the Oil Market by Hero

REAL WORLD EVENT DISCUSSIONS

A new approach to the Oil Market

POSTED BY: HERO
UPDATED: Monday, February 25, 2013 12:40
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Monday, February 25, 2013 12:01 PM

I think that since worldwide oil production is likely to drop in the next 100 years, maybe we need to reconsider how oil is bought and sold on the global market.

Right now all oil is bought and sold on the global market. This means that oil is as readily available to countries like the United States as it is everywhere. Basically, if you've got the money in a country like Bangledesh, you get oil same as if you've got the money in the United States and the result is higher prices in the United States since we now have to outbid smaller nations.

I think oil should not be traded globally but rather in limited established markets. The US produces oil, that oil should be in the US market along with oil from strategic partners such as Saudi Arabia. Since the US can't go it alone we form strategic trading coalitions. US, Canada, Britain, Japan, etc. The US, Canada, and Britain alone produce enough oil to support our combined needs. As an incentive there would be tax breaks, free trade, and other economic incentives to bring in nations with strategic resources we want or to let in nations who can benefit everyone with trade.

This should serve to exclude most of the resource poor developing world from general access to limited oil supplies. The benefit is that these countries will be forced to convert to a non-oil based economy which will make transition to alternate forms or energy much easier in the future. A Unfortunately such countries will find their prospects for further development limited until such new forms of energy can be made available on an economical basis. The world in general can take the opportunity to mitgate the forced retardation of the developing world by enacting a program for 100-year debt forgiveness as well as education, cultural, and humanitarian outreach.

The formation of large energy trading blocks will result in a global realignment as the blocks scramble and compete for dwindling resources. China will be less inclined to interfere in India and more apt to confront Russia over Siberia. The Arabs will more readily splinter between those who are tied to the west, those willing to seek the protection of Russia, India, or China, and those seeking to 'go it alone' who will find themselves isolated from meaningful global economic activity and ultimately either destroyed, left in economic ruin, or absorbed by force or circumstance into alliances not of their choosing. Europe will splinter between Russia and the US. Brazil will become a bigger player.

H

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Monday, February 25, 2013 12:40 PM

KWICKO

"We'll know our disinformation program is complete when everything the American public believes is false." -- William Casey, Reagan's presidential campaign manager & CIA Director (from first staff meeting in 1981)

That's pretty much how it works now. Big trading blocks, or "Coalitions of the Willing" if you will, taking what they want and shutting out poorer nations - even if those poor nations are the ones where the oil is. You realize that Iran's democratically elected leader, Mohammed Mossadegh, was ousted and the Shah installed as leader because Mossadegh nationalized the Iranian oilfields, returning ownership to the people of Iran. The U.S. couldn't have that. Venezuela did the same thing. Hell, we wouldn't even let Venezuela GIVE oil to the U.S. in the wake of Katrina!

Keeping resource-poor areas impoverished has worked out pretty well, right? I mean, it's not like anyone ever tries to strike back at us from some shithole like Afghanistan or anything, right?

What if the nation you want to buy oil from doesn't want to sell to you? What if they want to take a lower price from another country?

"I supported Bush in 2000 and 2004 and intellegence [sic] had very little to do with that decision." - Hero

"I was wrong" - Hero, 2012

Mitt Romney, introducing his running mate: "Join me in welcoming the next President of the United States, Paul Ryan!"

Rappy's response? "You're lying, gullible ( believing in some BS you heard on msnbc ) or hard of hearing."

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