Peak Oil

9/10/13

While the U.S.'s increase in dependency on petroleum for energy is troubling and harmful by itself, it is exacerbated even further by an idea termed Peak Oil. Peak oil is the name used to describe the notion that there is a limited amount of oil on Earth. Because oil is a limited resource, at some point, we will have used up more total oil than will be left in the Earth's reserves. This point is the literal peak of our oil supply. As we continue to rely on oil as our major fuel source, peak oil will become extremely important, not only for the U.S, but for the entire world. Due to America's intense dependence on oil, future negotiations and sales of oil will be heavily in the seller's favor. Whether it be Saudi Arabia, Iraq, or another, America will be at the mercy of their selling price or fear economic collapse. This will have many ramifications for both the U.S. and the global economy.

As peak oil starts to become an issue around the world, oil prices will start to rise even more so than they have been due to the realization that we have a finite amount of oil. From this, many oil dependent countries like the U.S. will have two main options; Either be forced to pay more for oil or find another energy source. Both of which seem to be completely against what American politicians and government officials have on their minds. These officials have two main objectives or goals in relation to how they deal with oil. 1. They want oil to be cheap and plentiful. And 2. They want oil to be the main energy source for many years to come. The former because it will allow the American public to buy oil for relatively cheap, which in turn helps their second goal. Since oil will be cheap, Americans will support it as their main energy source, so long as it stays a cheap price. The latter comes into play for a couple of reasons. These politicians and oil companies are making tons of money off of how prevalent oil is as a fuel source in the U.S. and around the world. If America started to shift towards greener, more environmentally friendly energy sources these politicians and oil companies would see large declines in profits, which they can't let happen. In my opinion, greed is a major component to what is stopping the world from advancing environmentally friendly and cleaner energy sources.

American foreign policy focuses largely on making sure oil is easily accessible and readily available from other countries. This can become endangered through a variety of reasons normally occurring in the Middle East. Most oil that comes from the Middle East goes through the Strait of Hormuz, which is surrounded by Saudi Arabia, United Arab Emirates, Oman and Iran. It is also in close proximity to Iraq, which is a center focal point for violence in the area. Saudi Arabia is America's biggest oil supplier in the Middle East as well as the focal point for American relations in the area. Other countries in the area like Iraq and Iran pose potential threats to the flow of oil through the Strait of Hormuz which the U.S. must deal with. It is this that poses a large threat to American economic prosperity and well being. If a war breaks out in the area, and the Strait of Hormuz becomes blockaded, military action will have to be taken in order to remedy the situation. However, this will come at a cost to both American lives as well as any other country involved. In the end, no matter what happens in the area, the U.S. will continue to focus its efforts on keeping the Strait of Hormuz open as well as the constant supply of oil flowing.

"The American military can help deter attacks on vital oil facilities and ensure the continuing flow of petroleum, but it can never guarantee that our rising demand for imported oil will be satisfied. all that is certain is that we will pay for it with an increasing sacrifice of blood." (73)