Energy Supply Chains

Countries buy oil, natural gas and coal from all other countries, but some supply chains have been stable. Putin’s initiative in Syria was astute. He offers needed stability in exchange for becoming a “player”.

Putin entered the Syrian mess to cozy up to Arab oil and ports.  He is also interested in pipelines.  Putin has Muslims in Russia and doesn’t put up with their crap.  China also gets Arab and Russian oil and natural gas.  As the high cost supplier to Europe, Russia wants to begin its own oil cartel.  Eastern European countries close to Russian are also Russian customers. 

Saudi Arabia prefers its independence and liked their deal with the US providing a military presence in the region.  It can supply Australia and anywhere else they want to go.

Europe is interested in US oil and natural gas as a lower price than they had to pay to Russia.  North Atlantic oil is good for Europe.

The US now has enough oil and natural gas reserves awaiting extraction by fracking.  The US can also get oil and natural gas from Canada, Mexico and the rest of South America. 

Japan and others will get their oil anywhere they can.

Light, sweet crude for automobiles is plentiful in the US and Saudi Arabia.

Russia, Iran and other Arab countries have heavier crude for diesel and other uses.

Arctic Circle oil can go into Russia, Canada and Scandinavia.

US Export Future

The US is in good shape to export energy and close up our balance of trade deficits.  That includes oil, natural gas and coal exports if we outfit the pipelines and harbors. 

US Jobs

High speed, automated manufacturing could develop to beat the cost and quality of low wage touch labor.  Where this occurs it could return to the US, if we can get our energy and regulatory policies to be less scary.

UN Agendas

It’s not likely we will see a new world order as countries attempt to protect their economies.  The global depression is forcing countries to protect themselves.  Developed countries are actually tired of supporting 3^rd world countries.  All have cut back or stopped unaffordable alternate energy schemes.  We could see more countries declare global warming a non-event.  We could see global liberals finally run out of other peoples’ money. 

Trade by proximity

The US Canada and South America is positioned to focus trade in the American third of the world. Europe has the EU.

 

Norb Leahy, Dunwoody GA Tea Party Leader