• 4 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 5 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 hours Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 7 hours VW Fails To Secure Critical Commodity For EVs
  • 8 hours Enbridge Pipeline Expansion Finally Approved
  • 9 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 10 hours OPEC Oil Deal Compliance Falls To 86%
  • 1 day U.S. Oil Production To Increase in November As Rig Count Falls
  • 1 day Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 1 day Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 1 day EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 1 day Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 1 day Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 7 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
Alt Text

How Vulnerable Is The Electrical Grid?

Hurricane Maria knocked out the…

Alt Text

Oil Prices Rise Amid Falling U.S. Rig Count

Oil prices inched higher on…

Alt Text

What’s Stopping An Oil Price Rally?

Oil prices rallied in Q3…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Energy is a Global Commodity and Should Stay That Way

A U.S. lawmaker called on the White House this week to eliminate what he said was a "disturbing connection" between U.S. energy demands and violence in the Middle East. New Englanders get about 20 percent of their liquefied natural gas from Yemen, where al-Qaida in the Arabian Peninsula is a grave security concern. In Yemen, AQAP was blamed for a series of attacks on oil and natural gas pipelines. In the United States, it's tried at least twice to strike a major blow. With the United States emerging as a natural gas superpower, however, perhaps the discussion should focus less on protectionism to keep energy supplies at home and more on how to get that natural gas out of the region and into a globalized economy.

U.S. Rep. Ed Markey, D-Mass., ranking member of the House Natural Resources Committee, called on the White House to either reduce or eliminate U.S. dependency on energy from the Middle East. He says the threat posed by AQAP in the region is a strategic vulnerability that warrants a retreat from the regional market. About 20 percent of the LNG arriving at Massachusetts ports comes from Yemen, he said, and groups like AQAP are threatening not only national security but energy security as well.

"The disturbing connection between American energy demands and violence in the Middle East is one that we must work to eliminate," he writes.

Meanwhile, Deputy Secretary of State William Burns was telling regional leaders that the global poles were shifting in terms of oil and natural gas. He said that the American and Caribbean economies account for about 25 percent of the world's crude oil and 30 percent of the world's natural gas. In terms of imports, the United States gets about half of its oil from its regional neighbors and only 20 percent from the Middle East.

"The world’s oil map is no longer centered predominantly on the Middle East, but increasingly on the Americas as well," he said.

Burns, in his address to the Council of the Americas, referenced Secretary of State Hillary Clinton's "power of proximity" policy. Clinton said last month that economic interdependence was one of the best ways to ensure regional energy security. Canada, Argentina, Brazil, the United States and Mexico have some of the richest energy deposits in the world and "harnessing the 'power of proximity' between the United States and our neighbors in the Americas is among the most strategically significant tasks in the new century opening up before us," said Burns.

But the so-called power of proximity, according to Burns' words, works both ways. And it should stretch beyond the immediate neighborhood. During the Carter administration in the 1970s, dragons were slain in the Middle East on the premise that the free movement of oil from the region was a strategic concern. A steady diet of U.S.-led military conflict in the region, however, has seemingly left a bad taste in the mouths of policy makers. Markey seems to want to retreat from the international energy arena almost completely while Burns advocates more of a regional policy. Protectionism and the collapse of global trade in the 1930s was a recipe for economic disaster. Open systems in the global energy market, not closed ones, should still prevail.

"This situation demands careful thought, steady nerves, and resolute action, not only for this year but for many years to come," said Carter.

By. Daniel Graeber of Oilprice.com




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News