President Obama’s blocking of the Keystone Pipeline had an obvious negative impact on jobs–the pipeline would have created thousands of jobs instantly–but it had a more dangerous long term impact on America’s energy independence. Alternative energy will not give us that independence at this time–we are a carbon based economy. The fruits of the decision to block the Keystone Pipeline and limit domestic energy production are becoming very obvious today.
Reuters is reporting today that Iran has stopped selling crude oil to British and French companies in retaliation for sanctions imposed because of Iran’s nuclear program.
The article reports:
Iran was supplying more than 700,000 barrels per day (bpd) to the EU plus Turkey in 2011, industry sources said.
By the start of this year imports had sunk to about 650,000 bpd as some customers cut back in anticipation of an EU ban.
Saudi Arabia says it is prepared to supply extra oil either by topping up existing term contracts or by making rare spot market sales. Iran has criticized Riyadh for the offer.
The European country most impacted by the Iranian move is Greece.
CNBC reported today that in December Saudi Arabia cut its oil production and exports.
CNBC reports:
Iraq, another frequently-cited supplier to make up for part of the Iranian oil shortfall following European Union sanctions, reported no major changes to its supply and export regime. Authorities there are pursuing an ambitious production expansion plan with the aim of reaching 12 million bpd by 2016.
The Reuters article reports:
Brent crude oil prices were up $1 a barrel to $118.35 shortly after Iran’s state media announced last week that Tehran had cut oil exports to six European states. The report was denied shortly afterwards by Iranian officials.
“We have our own customers … The replacements for these companies have been considered by Iran,” Nikzad said.
This is not good news for the western world. Now is the time for America to develop any and all of its energy sources. Even if we drilled everywhere today, we would still be facing a summer of at least $5 a gallon gasoline, but if we drilled everywhere today, we would at least have a better outlook for the future.
