Russia and Iran Moving to Corner the Mideast Oil Supply?

In the Middle East, it is time to follow the money. To me,  Steve Chambers makes all the sense in the world here. Russia is at best, a regional power, as we’ve discussed many times here. Jessica, with her usual common sense, reminded us in  The Rules of the Great Game, that those rules have not been suspended.

In addition, as Jess mentioned, Europe is critically dependent on Russian oil. They literally can’t afford to offend Putin overmuch. In large measure, North America can fix that, but we’re not working on that either. Sadly, Europe will in large measure pay the price for our shortsightedness, unless we suddenly decide to export oil again. (that bill has passed the House, likely will pass the Senate, and as usual for something in the interest of Western Civilization, Obama says he’ll veto it). Here’s some of the article:

It looks like Vladimir Putin and the ayatollahs are preparing to corner the world’s oil supply – literally.

Last May I wrote on this site that Iran was in the process of surrounding the Saudi/Wahhabi oil reserves, along with those of the other Sunni Gulf petro-states.  I added that, “Iran’s strategy to strangle Saudi/Wahhabi oil production also dovetails with Putin’s interests.  As the ruler of the second largest exporter of oil, he would be delighted to see the Kingdom’s production eliminated or severely curtailed and global prices soar to unseen levels.  No wonder he is so overtly supporting Iran.”

We’ve now seen Putin take a major, menacing step in support of the Iranians by introducing combat forces into Syria.  Many analysts argue that he’s doing this both to protect his own naval base at Tartus and as some sort of favor to the Iranians.  Are those really sufficient inducement for him to spend scarce resources and risk Russian lives, or does he have bigger ambitions in mind?  Given the parlous state of Russia’s economy, thanks in very large part to the recent halving of oil prices, he must relish the opportunity now presented to him, in an axis with Iran, to drive those prices back to prior levels.

The Iranians, for their part, must welcome this opportunity as well, for two huge reasons: first, when sanctions are finally lifted, thanks to their friend in the White House, Iran’s oil production will only aggravate the current global excess oil supply, reducing their cash flow (although they will still repatriate the $150 billion released by the nuclear deal).  They and the Russians must both be desperate to find a way to prevent further oil price declines.  And second, Iran’s mortal sectarian enemies and rivals for leadership of all of Islam are the Saudi/Wahhabi clan, so the prospect of simultaneously hurting them while strengthening themselves must seem tremendously tantalizing.

Source: Articles: Russia and Iran Moving to Corner the Mideast Oil Supply

OK, obviously disrupting the Arab oil supplies will trow a large spanner in the works of the world’s economy, as it drives oil prices to record highs, China, the US, and Europe all have fragile, and perhaps brittle economies, and yes the ‘refugees’ (even if they are legitimate) already are threatening Europe.

But as so often, North America has the solution, here’s a bit more from the article:

So, Putin and the ayatollahs have powerful motives to corner the world’s oil market and therefore the US and the rest of the world are facing an enormous risk.  The horrible pity of this is that the US could easily demonstrate the futility of the Russian-Iranian axis trying to take the world hostage with Mideast oil, simply by opening up our surface deposits of oil shales in the Rockies.  As I showed in this analysis last March, these resources could make Mideast oil irrelevant.

The US’ surface oil shales are completely different from the deep shales that are accessed through directional drilling and fracking and that grab all the headlines; the deep shales are a mere side show in terms of reserves.  The surface shales hold up to 3 trillion barrels of oil versus about 50 billion barrels of tight oil accessed by fracking.  The total global proven reserves of oil are 1.6 trillion barrels, and the Canadian tar sands have 1.6 to 2.5 trillion barrels (although they’re officially listed at 175 billion barrels, which are incorporated in the global total).  So, the US and Canada together essentially can triple the global supply of oil, and at prices in the $60-75/barrel range.  Meanwhile, Mideast reserves are about 800 billion barrels – half of Canada’s oil sands, perhaps less than a third of the US surface shales.  The world no longer needs the Muslim oil.

Unfortunately, the vast majority of the Rockies surface shales sit on Federal land, and while George W. Bush opened up those lands for development, Obama rescinded that policy.  These reserves now sit almost entirely idle.

As with any petroleum deposit, these surface shale reserves can’t be turned on with the wave of a wand.  But they can be opened for development with just a pen, and not even a phone.  For the protection of this country, and the good of the world, our current president should immediately open these reserves for development, with great fanfare.  If he will not use our military to protect our interests, he should at least use our economic weapons.

And so, once more, if the author is correct, as I think he may be, Russia is badly overextended, North America, the United States and Canada, hold the fate of the West, in our hands. But will we do what is necessary, as we always have, or will we play a violin concerto while Western Civilization burns.

We’ll see, but given the timing, I’m not very optimistic.

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About NEO
Lineman, Electrician, Industrial Control technician, Staking Engineer, Inspector, Quality Assurance Manager, Chief Operations Officer

18 Responses to Russia and Iran Moving to Corner the Mideast Oil Supply?

  1. Ike Jakson says:

    NEO

    I sat for a long time considering passing on your Post but then decided no, but it is you Post and I must respect your territory.

    Allow me just a short observation, please. From where we sit on the globe we are sometimes included in “the West” and sometimes not. BUT to me the “Old West” long ago ceased to exist; it’s virtually gone in morals and neglect. We see fresh hope in Russia and China, to a large degree on moral standards. Have a look at the countries that refuse the “same gender marriage” route, just as one example. There are many others.

    Is it not the time to bury references to East and/or West?

    With utmost respect for your standards; we need you and what you stand for in this World.

    Liked by 2 people

    • NEO says:

      Ike, I have to say you have much right in that statement, and yet, the old verities do exist in what you refer to as “the Old West”, so it is not all that clear cut. Europe, perhaps excluding the UK, or maybe only England, is gone, not least because it simply isn’t reproducing itself (Russia has this problem as well). It’s too early i think to say its over, but the cancer is metastasizing, and we’d best get to work. Sadly though, your perspective may well be right.

      Like

  2. Myself I would hardly see Russia as a mere “regional power”, not with its resources and nuclear ability! And again from my own belief and perspective, which is biblical and Judeo-Christian, Russia will surely enter into the Eschatological reality! (Ezek. 38-39) So East and West surely will and do matter! If we miss this, we will miss it to our doom! But again, this must be spiritually measured for any full and true understanding, and we in the West, who were at one time historically Judeo and Christian, have quite begun the road of cultural and spiritual Apostasy! Again, St. Paul’s last Epistle and Letter of Second Timothy (his last Will & Testament) does surely measure this for us even into the 21st century. My thoughts at least!

    *Btw, biblical Dispensation/Dispensations is the active administrative of stewardship and the economy, i.e. a disposition or arrangement of things, in a scheme or “dispensation”. (1 Cor. 9: 17 / Eph. 1: 10 ; 3: 2 / Col. 1: 25) And this is passively seen and understood by us! God In Christ is His own Sovereign and Sovereignty! In some real sense, we are along for the ride… Come Lord Jesus! 😉

    Liked by 1 person

    • Augustine believed in the “monarchy” of God and also of the Father. But to balance this Augustine brings in the principle of the “economy” or “dispensation” of God. Here it is applied to God’s providential administration of the world and His saving plan for humanity and the elect of God.

      Liked by 1 person

    • NEO says:

      I run with the old definition, a regional power can exert great power but not far from home, while a global power can exert great power world wide. Only two nations since Rome have been global powers, the UK and the US. And do remember that the ability to destroy (especially if doing so is suicidal, as it always has been for Russia) is not really a definition of power, area denial is not victory. Germany was the same, only in Europe where US/UK could do SEA nearly as easily as in our own backyards.

      Like

      • Yes, both the British and the American power was close to the idea of the Roman Empire, established (27 B.C.) by Augustus, succeeding the Roman Republic; at its peak it included W & S Europe, Britain, Asia Minor, N Africa & the lands of the E Mediterranean: divided (395 A.D.) into the Eastern Roman Empire & Western Roman Empire. But. it was defeated, and is no more, save the shell of the visible and historical! One cannot but think of the great Oriental empires too, which also are gone! Civilization, both intellectual and cultural will end, and only again renew with the Visible Second Coming of Christ, of course this is the biblical faith and revelation of the Judeo-Christian God In Christ, and the West as the East has really no other belief and faith, but the God of peace and the everlasting covenant, thru and in Jesus Christ! (Heb. 13: 20-21)

        Like

        • Btw, it is here that I would press Saul-Paul’s revelation in 1 Cor. 10: 32, with Romans 1: 16-17 ; 15: 8 & 9! (Note again, Col. 1: 25,)…The Apostle Paul really IS the vessel of God’s Word & Revelation… the Apostle to the Gentiles (Nations), i.e. Jews & Gentiles!

          Like

  3. the unit says:

    Oil worries? And EMP worries?
    Then this as well…TMS
    “transcranial magnetic stimulation”
    https://stream.org/scientists-claim-zapping-brains-with-magnets-can-treat-belief-in-god/
    Seems it’s already been delivered, before Obamaphones and giving grandma a pill.
    Well I’m wondering? Not just lol.

    Liked by 2 people

    • NEO says:

      I saw that, amazing what these fools will do to convince us true is false, isn’t it?

      Liked by 1 person

      • the unit says:

        Yeah and they say they can increase life span to at least 200 years. Just what I want 125 or so more years in pain and suffering. I’ll stick with the original plan and put up with what I got to. Silicon valley nerds…leave me be. 🙂

        Liked by 2 people

        • NEO says:

          Yeppers! 🙂

          Liked by 1 person

      • the unit says:

        P.S. and convince that false is true too. My tens apparatus directions specifically says do not place electrodes on one side of head and the other. They giving fair warning I guess. Avoiding potential law suit maybe. The exact nature of what problem it would cause I don’t know. Surely their scientists not pro God and against illegal immigration. But again I don’t know. Anyway I use cell phone on one side of head very sparingly. Maybe texting like the kids is the best way, not driving of course.

        Liked by 1 person

        • NEO says:

          Of course not! I don’t know about you but my fingers don’t fit well enough to do anything when I’m texting, maybe why i don’t, much! 🙂

          Liked by 1 person

  4. Pingback: Exporting Oil, Again | nebraskaenergyobserver

  5. Reblogged this on BPI reblog001.

    Like

  6. Pingback: BPI reblog001 Daily Archives: October 18, 2015 | boudicabpi2015

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  8. Pingback: BPI reblog001 Daily Archives: October 18, 2015 | Boudica BPI Weblog

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