Tag Archives: oil

Obama energy strategy: one part black magic, two parts propaganda


Again, and again, we must return to energy, the mother’s milk of the economy where the Obama Administration’s ham-fisted tactics are strangling the baby of recovery in the crib.

In his June 29th press conference, the President again singled out rebates to push U.S. fossil fuel production in his demand for tax increases for an economy already threatened by double-dip recession. The proposal compounds regulatory mischief: blocking oil and gas in the Gulf of Mexico while Chinese and other foreign companies drill off Cuba almost within sight of Florida beaches, forfeiting 250,000 jobs. “Regs” threaten West Texas fields contributing 20% of U.S. new production because of an obscure lizard. The White House dallies over a pipeline to bring Canadian oil sands crude to Texas refineries. While Moscow pushes Arctic prospecting, Juneau can’t get Washington to open up 14.7 million acres of state land with the critical Alaskan pipeline faltering from declining throughput.

Mr. Obama’s token strategic oil release – into the international crude pool rather than reducing U.S. pump prices – was one more feint in Mr.

Obama’s ideological war on fossil fuels. [Never mind ignoring the reserve’s national defense character; it was never meant as a price instrument – nor political toy.]

All this is done under the rubric of protecting the environment. “Junk science”, as many highly qualified skeptics believe, may underpin claims fossil fuels consumption decisively impacts climate change. It will take decades to know, given our shallow data for changing climate through the ages.

But “junk economics” is all too evident in the Administration’s energy strategies. Granted, impediments to cheap energy were inherited from previous governments and imperfect markets. But Mr. Obama’s drive for “renewable sources” mimics earlier Carter Administration’s abandoned “alternative energy” skeletons still littering the landscape.

Mr. Obama’s wind power subsides are indeed producing jobs – for China and Spain – with transferred American companies’ technology. Chinese windmills and solar panels are exported to the U.S., often replacing American manufacture.

The vignette of former Gov. Arnold Schwarzenegger entertaining the possibility of Chinese “high-speed rail” proposals with federal stimulus funds – just before California all but bankrupted — is quintessential of a mind set. High salaried propagandists for tax free non-governmental organizations [NGOs] promote “the environment” through advocacy of “mass transit”, citing China’s example. They fail to note deficit-ridden Chinese government railways – whose two top executives recently were arrested for stealing tens of millions – blackmailed European and U.S. companies for technology transfers in exchange for a phantom Chinese market. Now Beijing attempts exports while their own projects operate with anemic passenger loads — at lower speeds because of faulty engineering. The misrepresentation is all too typical of limitless, mindless propaganda pumped out on a daily basis, for example on that other Washington subsidized enterprise, National Public Radio, by the Obama cheering section.

In fact, a whole new era in fossil fuels is beginning. So-called “peak oil”, the crisis posited when diminishing reserves supposedly would meet rising consumption, has vanished. New vistas have developed worldwide with expanding deep-water drilling technology – a Norwegian billion-dollar floating platform in deep water off Rio de Janeiro, a good example. New fields await discovery in our own Gulf of Mexico – the less than cataclysmic British Petroleum oil spill notwithstanding. Recovering Iraq with the world’s second largest reserves, many yet untapped, is returning with 10 million barrels a day.

Even more spectacular, a new era for natural gas suddenly has emerged with new technology exploiting vast shale reserves lying deep below rock formations in a dozen countries, not the least the U.S. [An ironic comment on priorities: Beijing is investing government billions into American companies to get at that technology.] Of course, there already has been a half-baked university “study” by enviromentalistas arguing “fracking” – the process of getting at that gas – would poison ground drinking water. The study produces not a single instance nor does it explain the risk with most such deposits lying well below aquifers.

“Politically correct” spokesmen and the mainstream media promise black magic energy solutions, for example, electric cars, ignoring almost three quarters of our electricity for recharging batteries is met with coal and gas – much less the enormous costs and problems of grid expansion required for a massive changeover.

This conjuror’s trick has gone wrong; Mr. Obama is actually cutting the beautiful young lady in half as he cripples the energy sector.

sws-07-01-11

The West: mugged by reality


Encounters between the so-called Peace Flotilla and Israeli Defense Forces have far reaching implications beyond the conflict between the Jewish state and the Palestinians and their supporters.

Those concerns eventually will dictate the course of the U.S. fight against terrorism. Basic trends are now obscured by Washington’s desperate attempt to minimize friction with the umma, the whole of the 1.3 billion Muslim world.

But the clash has dramatized an ugly reality: a world torn apart by Islamic fanaticism verging on nihilism is increasingly abetted by old European and American leftism. That is further compounded by an attenuated economic recovery in the West. And that, in turn, threatens what has been until now rapidly growing export-led Eastern economies.

This economic and political devil’s brew includes:

  • Turkish government knowledge/participation in the Flotilla operation, is a touchstone which casts doubt not only on Ankara’s role but questions hoped for rapid modernization of other Muslim societies
  • NATO’s eastern flank crumbles as member Turkey courts Iran, Russia and Syria and other pariahs, in an effort to establish regional hegemony.
  • Israel poses a moral, political and military dilemma for the West as multidirectional hostile forces threaten Jerusalem’s existence, forfeiting any possibility of major compromises from the Jewish state — including land for peace.
  • Pres. Barack Hussein Obama’s outreach to the Islamic world has failed — all signs pointing to growing radicalization and no evidence of emerging strong reformist leadership.

All these issues are complex, of course, and there will continue to be conflicting evidence. VIP voices will deny these interpretations because geopolitical reality is always difficult to acknowledge. But just as the collapse of European welfare statism has proved those critics clairvoyant who argued against creating socially dependent societies, so inevitably will the true nature of the present conflict become self-evident.

As anti-Nazi German Lutheran Pastor Martin Niemoeller acknowledged so long ago, the Jews – this time in their own country — are the canary in the mineshaft.

That Jerusalem underestimated the capacity for violence is intriguing. The Turkish activists’ affiliation to known Istanbul terrorists was well-known. Counter-intuitively, caution led the Israelis to incur casualties, grist for propaganda of the new alliance of red and green, the traditional Western radical left and Islamicist sympathizers. Their attempt to portray their provocative voyage as a mercy rescue ignored Gaza’s large food and vitals stocks provided through additional European and American aid millions., actually flowing through Israel and Egypt.

The Israelis now facing rapidly arming terrorist neighbors – Hamas in the south, Hezbollah in the north, and an increasingly unstable Jordan to their east – can take no new gambles on their security in any “peace process”. Israel’s Gaza withdrawal has proved a strategic catastrophe.

Meanwhile, the Tehran mullahs who arm these groups are moving relentlessly toward nuclear weapons at some indeterminate date. However credible Tehran’s threat to wipe Israel off the map, a nuclear Iran would dominate world oil and gas, a constant threat to regional stability and the world.

Turkey’s new role as an apologist for Tehran means turning its back on its half-century alliance with the U.S. It returns to an equivocal position, much like that during World War II when former German Chancellor Franz von Papen made Istanbul the Nazis’ overseas intelligence center.

As with more than one contemporary administration around the world [perhaps including the U.S.], it is hard to judge how much Turkish Prime Minister RecepTayyip Erdogan’s policies are Michaevelleian and how much amateur hour. But clearly a half century of top-down Kemalist secularism is fading rapidly under attack from a new Anatolian, conservative Muslim middle class — ironically in no small part created by huge post-World War II American aid. As an anti-Soviet ally, Washington pumped more than $12.5 billion in economic and $14 billion in military aid [in unadjusted dollars] into Turkey. This does not include vast sums spent on and from U.S. bases and training programs. In riposte, Turkey, of course, blocked US/NATO base transit during the Iraq invasion.

Although Ankara now runs a bilateral trade deficit because of energy dependence on Moscow, Turkish companies are investing heavily in Russia. In return Prime Minister Vladimir Putin has promised to build Turkey’s first nuclear power plant — ominous given Moscow’s collaboration in helping to lay the groundwork for Iran’s nuclear weapons program.

Unlike the Korean War, and even Vietnam, where Turkey played a role, its 1800 troops in Afghanistan are smaller than Holland’s contribution and restricted to training. So much for calculations that its high birthrate and military tradition would make Turkey the principal NATO European fighter pool.

It was in Turkey, of course, where Pres. Obama launched his celebrated foreign policy initiative, an attempt to dialogue with a hoped for strengthening moderate Islam. Pres. Obama’s reiteration of American support for Turkish entry into the European Union rings hollow today with membership out of the question. To the contrary, how to deal with radicalization of Europe’s growing emigrant Muslims – including Turks — has become a chief West European headache. And nowhere has new, effective reformist Muslim leadership arisen.

sws-06-03-10