Energy independence is good for America but bad for the oil companies because they have been making and can continue to make huge profits off of Americans’ energy dependence and profligate thirst for oil.
Big Oil berates talk of energy independent AmericaOh lord.
By Deepa Babington
HOUSTON, June 27 (Reuters) - The popular refrain in Washington of weaning America off Middle Eastern oil is an unattainable goal that may end up hurting the country in the long run, top oil executives said on Tuesday.
"Repeated pronouncements by U.S. policymakers about backing off Middle East imports may deter Arab [countries] from expanding capacity at the very time the world needs them to do so," [William] Berry [Executive VP of exploration and production for ConocoPhillips] said. "Furthermore, ongoing references about reducing Middle East imports will motivate producers to become more focused on meeting Asian needs and hamper the ability of the United States to compete for supplies."Uh, Mr. Berry, the whole point of weaning ourselves off of oil is so that we no longer have to rely on the now-dubious prospect of expanded Middle East capacity. With its current demand, the world may “need” the Saudis to increase capacity, but there is a growing question of how much more they can do that, especially with not-so-positive prognoses coming from their largest fields.
In April, 2006, a Saudi Aramco spokesman admitted that its mature fields are now declining at a rate of 8% per year, and its composite decline rate of producing fields is about 2%.Secondly, who cares if Asian countries like China will get a stronger foothold in the Middle Eastern oil market? They are just digging their own economic graves with an increased dependence on an unsustainable and dwindling energy supply. With decreased energy demand through conservation and investing in sustainable energy, the U.S. will not need to compete with China or India for oil.
Though popular among consumer activists and politicians, the concept has come under attack from Big Oil and Arab countries who see the move as fantasy at best and counterproductive at worst. [Reuters article]Fantasy and counterproductive under our current lifestyle that oil has underwritten, but certainly a reality if we slowly but consistently invest in conservation, energy efficiency, and, thirdly, alternative energy sources.
An energy-guzzling country like the United States needs a diversity of oil suppliers, said Chevron's international exploration and production chief John Watson.Watson just made a good case for community renewable energy.
"True energy security comes from recognizing that the world needs more sources of energy, not less," he said. [Reuters article]