- Oil ministers from OPEC nations have quietly told national
security advisors on Capitol Hill that the oil production cutbacks -- and
resulting price increases -- are being implemented at the request of the
Clinton administration on behalf of Russia, Indonesia, Mexico and Iran.
Russia, Mexico and Indonesia are reported to be directing their increased
oil profits toward paying back overdue Western loans.
- According to one government defense adviser, the windfall
profits are part of a larger scheme to use the American public to pay off
failed and corrupt investment schemes in the three countries. "The
American public is paying off bad loans to bad countries made by bad bankers,"
stated the national security adviser.
- The largest Middle Eastern oil producers reportedly agreed
on the cutback of oil production in order to increase income for weapons
purchases. Several oil states have announced major weapons buys from the
West, including a recent multi-billion-dollar purchase of Lockheed/Martin
F-16 fighter jets. "Iran is also trading oil to China in exchange
for missile technology," stated the national security adviser.
- The gas hike has raised several concerns about the Clinton
energy policy and U.S. national security. In recent years, OPEC has flooded
the market with oil, lowering prices worldwide. The lower prices, according
to Denise Bode, a commissioner on the Oklahoma Corporation Commission,
were designed to discourage investors in U.S. domestic oil production,
maintaining a world monopoly for OPEC. "The OPEC cartel clearly understands
that the Clinton energy policy is based on instant gratification,"
stated Bode, "seeking low gasoline prices and ignoring future consequences
with a foreign cartel in charge of our national energy resources.
- "In 1997, OPEC acted to consolidate the American
market by sending much cheaper oil, dumping it at historically low prices.
The most significant energy policy initiated by the Clinton administration
is a 4.3 cent increase in the gasoline tax," said Bode. "Another
30,000 Americans have lost their jobs. Domestic oil production has moved
from holding steady to a 5.4 percent decline. Even though OPEC has recently
cut back production and raised the price of oil to $30 a barrel, there
has been no increase in domestic production."
- "It's very clear what OPEC should do if they want
to retain control," stated Donald Hodel, former secretary of energy
and secretary of interior during the Reagan administration. "Periodically,
they should announce they are going to produce excess volumes of crude
oil. The announcement itself will scare away some capital investment from
new production. Secondarily, if that doesn't work, and from time to time
to prove their point, they would have to overproduce, drive the price down
dramatically, so that marginal wells in the United States will be shut
down and new investment will be shut down worldwide."
- According to Hodel, the "green" movement has
combined with OPEC to "erect straw arguments" against the U.S.
energy industry. "I've never met anyone who said I want to breathe
dirty air or drink polluted water," noted Hodel. "Yet, the green
movement has succeeded in using clean air, clean water and garbage control
as a means to seek de-industrialization in the U.S." "The problem
is that the schools have been captured by the flaming environmentalists,"
noted Hodel. "We are not doing a decent job of getting the educational
establishment to acknowledge the facts about the importance of energy production
to our economy.
- "If we were rational about our energy policy, we
would have a growing component in our society of nuclear power. The people
who fought nuclear power have successfully stopped coal. They are now turning
toward natural gas and oil. We made the point over and over that offshore
drilling is less of an environmental hazard than transporting imported
oil by tanker." Hodel concluded, "Our dependency on foreign oil
affects our national security and our environment."
- Charles Smith is a national security and defense reporter
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