• 2 days Iraq Begins To Rebuild Largest Refinery
  • 2 days Canadian Producers Struggle To Find Transport Oil Cargo
  • 2 days Venezuela’s PDVSA Makes $539M Interest Payments On Bonds
  • 2 days China's CNPC Considers Taking Over South Pars Gas Field
  • 2 days BP To Invest $200 Million In Solar
  • 2 days Tesla Opens New Showroom In NYC
  • 2 days Petrobras CEO Hints At New Partner In Oil-Rich Campos Basin
  • 2 days Venezuela Sells Oil Refinery Stake To Cuba
  • 2 days Tesla Is “Headed For A Brick Wall”
  • 3 days Norwegian Pension Fund Set to Divest From Oil Sands and Coal Ventures
  • 3 days IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”
  • 3 days Goldman Bullish On Oil Markets
  • 3 days OPEC Member Nigeria To Issue Africa’s First Sovereign Green Bond
  • 3 days Nigeria To Spend $1B Of Oil Money Fighting Boko Haram
  • 3 days Syria Aims To Begin Offshore Gas Exploration In 2019
  • 3 days Australian Watchdog Blocks BP Fuel Station Acquisition
  • 3 days Colombia Boosts Oil & Gas Investment
  • 4 days Environmentalists Rev Up Anti-Keystone XL Angst Amongst Landowners
  • 4 days Venezuelan Default Swap Bonds At 19.25 Cents On The Dollar
  • 4 days Aramco On The Hunt For IPO Global Coordinators
  • 4 days ADNOC Distribution Jumps 16% At Market Debut In UAE
  • 4 days India Feels the Pinch As Oil Prices Rise
  • 4 days Aramco Announces $40 Billion Investment Program
  • 4 days Top Insurer Axa To Exit Oil Sands
  • 5 days API Reports Huge Crude Draw
  • 5 days Venezuela “Can’t Even Write A Check For $21.5M Dollars.”
  • 5 days EIA Lowers 2018 Oil Demand Growth Estimates By 40,000 Bpd
  • 5 days Trump Set To Open Atlantic Coast To Oil, Gas Drilling
  • 5 days Norway’s Oil And Gas Investment To Drop For Fourth Consecutive Year
  • 5 days Saudis Plan To Hike Gasoline Prices By 80% In January
  • 5 days Exxon To Start Reporting On Climate Change Effect
  • 6 days US Geological Survey To Reevaluate Bakken Oil Reserves
  • 6 days Brazil Cuts Local Content Requirements to Attract Oil Investors
  • 6 days Forties Pipeline Could Remain Shuttered For Weeks
  • 6 days Desjardins Ends Energy Loan Moratorium
  • 6 days ADNOC Distribution IPO Valuation Could Be Lesson For Aramco
  • 6 days Russia May Turn To Cryptocurrencies For Oil Trade
  • 6 days Iraq-Iran Oil Swap Deal To Run For 1 Year
  • 9 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
  • 9 days Mexico Blames Brazil For Failing Auction

Breaking News:

Iraq Begins To Rebuild Largest Refinery

Alt Text

Are U.S. Shale Stocks Finally Set For A Rebound?

After years of meager returns…

Alt Text

Blockchain And The $3.6 Trillion Infrastructure Crisis

There is an infrastructure crisis…

Alt Text

U.S. Solar Nearly Doubles Output In 2017

The latest edition of the…

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

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