Real Wealth Society

Tuesday, May 02, 2006

I’ve been thinking about developments By Fred Cederholm

Column for on/after Apr 30th

I’ve been thinking about developments. Actually I’ve been thinking about grass, “the PDB,” Canada, Mexico, Venezuela, Saudi Arabia, Nigeria, Iraq/Angola, and bodies. Over the past weekend, I needed to get gas for my John Deere riding mower and for my trimmer/edger. It was time to begin the lawn cutting season of 2006. As I paid for the fuel, it hit me that filling my yard equipment cost more than 3 times what it did to fill my first car – a little red Renault Dauphine. What a revolting development that was to my psyche! What gives?

You see last Friday April, 28th; the Energy Information Agency of the US Department of Energy released the figures and breakdowns of our petroleum energy consumption and imports for February 2006. You might TH*NK that information is now two months old, but remember how Shakespeare wrote: “What’s past is prologue.” The PDB (President’s Daily Briefing) surely addresses these data. A growing number of Americans believe as I that Uncle $ugar’s policies – both foreign and domestic – are fueled by petroleum concerns (pun intended.) TH*NK about subsequent “news” making developments in light of the following information.

Canada was the largest external source of total petroleum energy imports in February 06. We imported 2,262 TBpD (Thousand Barrels per Day) down 2.1% from Jan. 06 and up 9.1% from Feb. 05. Canada is not a member of OPEC and accepts dollars for their sales. Given the importance of the Canadian energy sources to US/us, things are pretty quiet on this front.

Mexico was the second largest external source of total petroleum energy imports in February 06. We imported 1,878 TBpD up 4.6% from Jan. 06 and up 18.5% from Feb. 05. BUT… Mexico also became our LARGEST external source of total crude oil imports in February 06 – for the first time (?). We imported 1,774 TBpD up 4.3% from Jan.06 and up 19.2% from Feb 05. Mexico is not a member of OPEC and accepts dollars for their sales. Bush met with Mexico’s President Fox in a special summit at Cancun in March. How much of the discussions dealt with our imports of oil? How much of the discussions dealt with their exports of people as “guest workers” nee illegal aliens? Were these discussions linked?

Venezuela was the third largest external source of total petroleum energy imports in February 06. We imported 1,475 TBpD down 4.2% from Jan. 06 and down 12.7% from Feb. 05. Venezuela is a member of OPEC and accepts dollars/EURO’s for their sales. President Chavez has continued his efforts to “nationalize” Venezuela’s oil industry and oust foreign oil conglomerates from tapping “their” petro-riches. What progress was made in negotiations with China/India to meet their future energy needs at the further “expense” of supplying US/us?

Saudi Arabia was the fourth largest external source of total petroleum energy imports in February 06. We imported 1,451 TBpD up 6.0% from Jan. 06 and down 7.8% from Feb. 05. Saudi Arabia is a member of OPEC and accepts dollars for their sales. Given the importance of the Saudi energy sources for US/us and the regional turmoil, things are very quiet on that front.

Nigeria was the fifth largest external source of total petroleum energy imports in February 06. We imported 1,377 TBpD up 16.1% from Jan. 06 and up 14.3% from Feb. 05. Nigeria is a member of OPEC and accepts dollars for their sales. How many Americans even know where in Africa Nigeria is located, or what’s been happening there? Unless you make a point of checking foreign news reporting on-line, you wouldn’t have a clue. Were you aware that petroleum from Iraq – Supplier #7 – at 450 TBpD in February 06 down 15.4% from Jan. 06 and down 14% from Feb. 05 was being supplanted with petroleum from Angola – Supplier #6 – at 478 TBpD in February 06 up 10.4% from Jan. 06 and up 21.3% from Feb. 05?

Uncle $ugar’s policy developments abroad (what the Administration chooses to do) and at home (what the Administration chooses not to do) are clearly linked to America’s addiction/ dependency on foreign oil. To secure access to the oil of the Middle East, we are “paying” in bodies for barrels. To secure access to the oil of our neighbor to the South, we are “accepting” bodies for barrels. I’m Fred Cederholm and I’ve been thinking. You should be thinking, too.


Copyright 2006 Questions, Inc. All rights reserved.

To “audit” this column and to learn more about the subjects discussed, please check out:
February 2006 Import Highlights: Released on April 28, 2006
http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

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