The fact is that the West has repeatedly shown it prefers bloody cheap oil and supporting autocratic regimes with poor Human rights records not only against their own populations but the world at large. These regimes continue to fund terrorism and invasions from the revenues they earn from selling bloody energy to western nations. Why does the West do this? The West has demands for a particular lifestyle, of big vehicles, extensive travel, enormous homes, over the top consumption. Countries in OPEC plus Russia, control about 45% of total oil production and reserves and they know the lifestyle demands of citizens in the west. The US consumes nearly 20% of all the worlds energy per day and Europe is not far behind and this thirst for energy bodes well for all these oppressive regimes to future funding plans.
The West is always fearful to allow any criticism of OPEC or nation members. Saudi was the nationality of 15 of the 911 hijackers, and Saudi citizens today are still heavily involved in both the planning, financing and implementation of terrorism, yet no Saudis have faced any consequences.
Now we have Russia who is also one of the worlds biggest suppliers of crude, waging a war against another Sovereign State, to appease the delusions of a tyrannical despot, who cares little about his own people or the civilians in Ukraine, but instead is fixated on his own need to write a new version of Russian history.
In 2008 and 2014, the world sat by and watched as Russia invaded Georgia and annexed Crimea from Ukraine. The West did little because the world and especially Europe needs Russian energy. Just like no one did anything to Saudi Arabia after 911, because of their role as an oil producer.
American policy in particular has been to ignore the issues from both these players while at the same time treating its neighbors to the north, Canada, like shitty cousins. How many Americans know how much crude comes from Russia, Saudi and Canada each day into the US? According to a September 2021 report from the US Energy Information Agency, the US imports roughly half a million barrels a day from each Russia and Saudi. From Canada, the US imports 4.1 million barrels a day, dwarfing what comes in from those other two. Canada’s confirmed oil reserves are in the area of 300 billion barrels. Neither, Saudi Arabia or Russia have close to that, the Saudi reserves are estimated about 140 billion and Russia at 65 billion.
As the US and West spends money purchasing Oil from Regimes like Russia or Saudi, they are helping to fund campaigns designed against the US and its allies. Isn’t that a kick in the head too be funding those who don’t like you and want to destabilize your way of life, even attack you direct, like during 911? Has Canada since 1812 ever attacked the US or invaded a sovereign country? Nope in 1815, after 3 years of war and the burning down of the White House and most of Washington DC, in retaliation of the US invasion into Canada, both sides came to the realization of being allies rather than adversaries.
Keystone XL, which was cancelled by the Biden administration, would have supported jobs in the US and would supply about 850,000 barrels a day of crude to the US, nearly fully offsetting the imports from Saudi and Russia. This could have helped to keep US fuel prices lower by establishing a steady and politically stable supply of Crude and the US would be less susceptible to world price shocks, and keeping inflation down.
The fact is we have a situation in Europe that has been funded by the purchase of Russian energy. European nations and NATO now have to arm in preparation of a potential Russian advance. The energy security of Europe is now an immense mess as countries with the energy agreements with Russia are now facing energy supply issues and the moral issue of funding an aggressor nation.
The fallout to America is hitting the pocket book of average Americans with an increase in oil prices due to the war and supply constraints. In addition, even though asked to increase production, OPEC nation states are dragging their feet as they are now coining it with respect to spot oil contracts and have no interest in increasing the supply and end this windfall.
Many of you reading this might wonder why then is the US still buying from these tin-plated dictators when a ready source is next door? The reason is the US has not been playing fair in Canada’s Oil markets through a couple of strategies it has employed. First is the use of paid protestors to create discourse on Canadian energy development and pipelines. Groups like the Tides foundation work not necessarily for the planet but for people like the Rockefellers, who are owners of Chevron and oppose Canadian pipelines to bring crude to market. By preventing and obstructing pipelines in Canada, most Canadian Oil is then land-locked and the only market is the US, where companies like Chevron manipulate the price of Canadian crude to their refineries, paying a substantial discount to the world price of oil. This savings is not passed to US gas consumers but the huge “Crack Spread” profits are passed to shareholders, like the Rockefellers. (Crack spread is the difference in value between unrefined and refined oil products)
The other campaigns against Canada are based on how dirty the Oil sands are and the emission of CO2 from burning natural gas to separate the oil from the sand. Most Oil sands development is done using steam injection into the sand, which does not disturb the land above and the oil is captured underground. Yes some Oil Sand production is done via strip mining and processing, but it is in a small area compared to how big the oil sands are, an estimated 90,000 square miles or the size of Louisiana.
While CO2 is produced to heat and develop steam, the industry has greatly reduced its CO2 footprint by utilizing new technologies and C02 injection back into the formations that help the flow of oil capture. It is not perfect and still produces greenhouse gases but all energy production comes with some pollution. The flare stacks in North Dakota run 24 hours a day, burning off so much natural gas that North Dakota looks like a city at night from space.
Let’s just be honest, all Western and Developing countries are energy whores and most are dependent on the whims and actions of mostly autocratic dictatorships. While so many individuals and leaders talk about the affects of climate change few actually practice what they preach. What is the number one purchased vehicle in North America over the past 10 years….that is right SUV’s and Pickups, not compacts.
So given the fact no one is really prepared to change their lifestyle choices, the West needs to examine its choices. Does it want bloody oil associated with wars, atrocities, human rights abuses and having to deal with Narcissistic Autocratic Assholes like Putin, or does it make better sense to invest and develop technology to make Dirty Oil Clean?
I prefer the second choice especially when I look at what bloody oil is doing to Ukraine. Who knows how much this is going to cost the people of Ukraine but it is significant.