Blood, Oil and War

And for sure, there are prices over which we - as Bahamians- have absolutely no control. It necessarily follows that those who make promises should make sure that they can truly deliver.

We make this observation as we note that we have no control over the price we pay for oil. We make this observation as we take note of the relation between the fight for oil, war in Iraq and other atrocities around the world. As we see it, quite a few of these struggles are all about oil.

And for sure, these struggles do involve the United States of America, India, China, Russia and Europe, among other powers that are contending for power and influence in the world.

Some other countries matter because they have some oil reserves.

Iraq is one of them.

Iraq is believed to have some of the world's largest oil reserves, about 115 billion barrels. The country's 2007 budget is based on predictions that oil proceeds will reach $31 billion, 93% of the government's revenue.

Here we find Iraq and here we find one possible explanation as to why the United States of America is prepared to pay such a frightfully high price in Iraqi and American blood for some of that oil that is coursing under that troubled nation’s top-soil.

In this regard, take note that U.S. officials would like the Iraqis to make a new law that would guarantee them certain rights and concessions as regards access to this vitally important product.

The Iraqis are balking; and rightly so.

The oil card is the one trump they have. As such, they are called upon to play it well and for all they can get from an oil-starved United States of America.

The truth is that as goes oil so goes the world economy.

And for sure, that power that controls oil will be that power that can decisively influence the way things go in the world.

Today the world is being led by a United States of America that is acutely dependent on foreign oil supplies. This brings with a host of strategic implications.

As Michael T. Klare notes, "The problem of growing US dependence on imported petroleum was first raised in the National Energy Policy Report, released by the White House in May 2001. Known as "the Cheney report," after its principal author, the Vice President, the document revealed that imported supplies accounted for half of US oil consumption in 2000 and will jump to two-thirds in 2020.

"And despite all the talk of drilling in Alaska, the report makes one thing clear: Most of America's future oil supplies will have to come from the Persian Gulf countries, which alone possess sufficient production potential to meet ever-growing US energy requirements. Thus, the report calls on the White House to place a high priority on increasing US access to Persian Gulf supplies.

"Growing worries about the stability of Saudi Arabia, principal US supplier there, heightened by revelations of Saudi extremists' involvement in the September 11 terror attacks, have prompted US strategists to seek a backup should future instability lead to a drop in Saudi oil production, which could trigger a global recession…"

And as Klare rightly notes, "Some strategists have proposed Russia as a backup, others the Caspian Sea states of Azerbaijan and Kazakhstan. But only one country has the capacity to substantially increase oil production in the event of a Saudi collapse: Iraq.

"With proven reserves of 112 billion barrels of oil (compared with 49 billion for Russia and 15 billion for the Caspian states), Iraq alone can serve as a backup for Saudi Arabia.

"At the same time, control over Iraqi oil would allow US leaders to more easily ignore Saudi demands for US action on behalf of the Palestinians and would weaken OPEC's control over oil prices…"

Klare tells us that "Iraq has yet another key attraction for U.S. oil strategists: Whereas most of Saudi Arabia's major fields have already been explored and claimed, Iraq possesses vast areas of promising but unexplored hydrocarbon potential…"

And so the bottom line is that "these fields may harbor the world's largest remaining reservoir of unmapped and unclaimed petroleum - far exceeding the untapped fields in Alaska, Africa and the Caspian…"

It necessarily follows that, "Whoever gains possession of these fields will exercise enormous influence over the global energy markets of the twenty-first century."

Quite evidently, the United States of America is involved in this titanic struggle. And for sure, it will use whatever means it must in order for it to prevail.

That said, it is today no foregone conclusion that this great nation will prevail.