The United States oil crisis; working with the anti-Chavez movement
 

US-based oil industry analyst Zhar Maldonado writes: The United States is facing serious pressures from states such as California, New York, and Nevada to establish a higher method of energy production. In the past century oil and other fossil fuels have been the catalyst for the United States to become an international hegemony.

Oil and fossil fuels are an unstable and dwindling energy source causing America to take serious measures in securing a stable oil supply to meet its energy needs.

In 1970 the US produced 2/3 of the oil it needed to meet the countries energy needs. In 1973 the oil embargo on the US caused the first oil crisis. (Appenzeller 2004) Arab leaders produced the oil embargo because the US was supporting Israel in the Mideast war; Texas could not make up the difference and a crisis emerged. Oil prices skyrocketed, giving Americans their first lesson on their fossil fuel dependence. The speed limit dropped to 55 miles per hour to save fuel.

The 1978 revolution in Iran caused the second oil crisis as the country cut off oil exports. By 1981 crude oil prices skyrocketed again reaching the equivalent of 70 dollars a barrel today. (Appenzeller 2004) During the mid 1980?s, four new fields caused oil to sell for less than 25 dollars a barrel in today?s dollars: the Persian Gulf, Alaska?s North Slope, the North Sea, and in the Gulf of Mexico. The US had a constant oil supply until 1991 when the Persian Gulf War disrupted the constant oil exportation from Iraq and Kuwait.

Currently the US is more dependant than ever on international countries in the Middle East, and South America to secure the necessary minimum oil quota of 7,191,000,000 barrels annually, more than 2/3 of the US entire oil consumption. In June 2004, the price of oil reached US$42.33 a barrel; the highest point in 21 years, causing the price of gasoline to increase to more than two dollars a gallon. Political turmoil in some of the world?s largest oil producing countries -- Iraq and Venezuela -- has significantly disrupted the constant oil supply to the US for the first time. The U.S. is dependant on foreign oil leaving its energy supply vulnerable to any problems with current transportation routes, terrorism, international politics and their ability to use force.

The United States oil crisis was not caused by a natural disaster such as a hurricane or a tsunami. Although it is difficult to pinpoint exactly who or what caused the current oil crisis, Presidents Bush solution -- the war in Iraq -- did not help to solve it. Instead, it made matters worse, as Americans and Iraqis continue to lose their lives.

The war also cost billions of dollars in energy consumption, loss of military arsenal, and has destroyed Iraq?s infrastructure.

The losses continue to increase as the US remains in Iraq trying to set up a democratic government. It is crucial for the US to gain control of the international oil supply if it wants to continue being an international hegemony. In late 2002 and early 2003 the warning stages of the crisis were at hand. President Bush gets heavier involved in the war asking the government for more money to fund the war. President Bush gained control of Iraq in ?Mission Accomplished? in May 1st 2003; currently the war in Iraq still continues with over two thousand deaths and total cost of over 300 billion dollars.

Distracted by the war in Iraq and terrorism, US officials did not focus on the political turmoil occurring in Venezuela. When US officials did take note, both Washington and the oil industry misread Venezuela?s political situation and underestimated the impact the showdown would have on oil flow into the US President Bush lost his opportunity to ensure that the oil market was better supplied to survive the political unrest in Venezuela. The U.S. oil crisis unintentionally got out of control as President Bush focused on the Iraq war, ignoring the political turmoil in Venezuela.

A crisis occurs when an outside country stops the U.S. meeting its minimum annual quota of 7,191,000,000 barrels of oil. President Bush lacked foresight in identifying the various threats to the U.S. oil supply as well as establishing a crisis plan. To adequately address the situation in Venezuela, a crisis planning team (CPT) to recognize the early warning signs and appropriately respond to the problem was not set up in time. A crisis management team (CMT) represents the interests of the US, and a crisis manager to whom is appointed decision-making authority, should have been set in place to deal with the political unrest leading to the sudden decline in oil exportation from Venezuela to the US in the past years. (Guth, Marsh 2003)

As the price per gallon of gasoline continues to increase, the crisis has reached the point of no return. President Bush must tell the American public that he is going to oppose Chavez as one solution to the problem. At this point the crisis has become unavoidable and President Bush is forced to be reactive. It is important to tell the public about the crisis and the main issues.

The war in Iraq and political turmoil in Venezuela has drastically decreased oil exportation into the US, but President Bush still has had an opportunity to minimize damage. Brian J. Fleay, editor for oilcrisis.com says, ?President George W. Bush has the USA?s greatest energy crisis in history on his agenda. The only immediate solution is for the US to systematically reduce consumption of electric power, natural gas and oil.? (Fleay, 2004)

President Bush is not implementing nuclear power as a solution due to problems in American history that have caused negative myths on this relatively clean energy source. The length of the US oil crisis depends largely on how well prepared the president is to deal with it. President Bush?s inability to communicate with Chavez has left Bush with no other choice than to oppose Chavez; ?the United States, which has concluded that normal relations with Venezuelan President Hugo Chavez no longer are possible, is considering a long term strategy to oppose Chavez. (Krugman, 2004)

Chavez is opposed to the US hegemony over international politics, corporate control, and globalization; these are all issues that America believes in.

President Bush needs to realize that the best option to improve US relationship with Chavez and Venezuela is to focus on aiding the country instead of raping its natural resources. President Bush needs to support Chavez when he wants to help the ?pueblos? and its people. America must become involved in a positive way by investing in the police force, the hospitals and improving the quality of life in Venezuela. Venezuela being Americas largest oil supply must focus on improving relations before the oil contracts are consumed by countries such as Brazil, India, Cuba and China President Bush needs to ask congress to invest in improving Venezuela?s economy and infrastructure to improve relations instead of asking congress for $87 billion to fight off terrorism in Iraq.

President Bush may not always make the best decisions, but he is concerned for the good of the American people. Chavez is the same way, he wants what?s good for the pueblo and the Venezuelan people, or Bolivarianos.
Venezuela and America need to work on the long-term process of improving the standard of living, education and security in Venezuela, one of the world?s most valuable assets.

President Bush needs to find a way to cleanup the crisis. The energy war that began in 1991 didn?t get out of control until America invaded Iraq causing oil prices to reach 55 dollars a barrel. (Campbell 2004)

President Bush has a confrontational approach to crisis cleanup; he opposed Saddam Hussein and the Ba?ath party and is currently opposed to Hugo Chavez and the Chavistas, increasing support for anti-Chavez groups in Venezuela. (Fleay, 2004)

It seems that it is going to take the US a long time to reach a stable and constant oil supply to meet America?s energy needs, if that day ever comes.
Increasing air fare, public transportation, and gasoline prices


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