Thursday, July 14, 2005

The Energy Crisis

Much of the discussion at the Heritage Foundation revolved around the current events with Unocal. The theme of the talk was that the US has poorly managed itself in the oil market and the need to change this is urgent. The fact is that we get most of our oil from hostile, or at least potentially hostile, nations such as Saudi Arabia, Iran, Iraq, etc. This is a huge danger to the US. If Saudi Arabia all of sudden decided to cease selling oil to us we could lose 6 billion dollars worth of the oil we consume daily (which is about 20 billion dollars worth). The solution to the problem is to develop relations with those countries who are not hostile to us, such as Venezuela, Russia, and Canada, who has the potential to be the worlds #1 oil producer.

China's already beating us to the punch, though. China's relation with Venezuela continues to thrive, and Venezuela becomes more and more interested in giving China oil in exchange for military technology. China is also working on a good relationship with Canada, which is more than we're doing (we aren't pursuing getting any more oil from then, even though we could).

There are a couple solutions to this problem. One is to get a grip and begin opening the door to other oil suppliers.. Another option is to pursue finding new, more efficient means of power so that we don't have to rely so much on oil (we currently consume 1/4 of the worlds oil).

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