Black Gold Blues
By Charles Smith (originally posted 5-9-00)
© 2000
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 for WorldNetDaily.

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