Our current Administration is going full bore towards mandating alternatives to fossil fuels. Rather than allowing the gradual, economically-driven transition that was already occurring to continue apace. I know many people with hybrid vehicles, and a few with Teslas, and my neighborhood is full of solar-panel-covered rooftops. Biden’s artificial imposition of regulations is tipping the balance far faster than is safe. This, supposedly, in the interest of saving the planet. But what if it leads to war?
Think about which nations get a large part of the revenues that allow their nations to prosper from fossil fuel exports. OPEC consists of many nations, including several founding members from the Middle East.
The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. They were the Founding Members of the Organization.
Most of these nations are not known for being friendly towards the USA. Recall that 19 of the 21 hijackers on 9/11/2001 were Saudis even though the USA was supposedly allied with Saudi Arabia.
These countries were later joined by Qatar (joined in 1961, and left on 1 January 2019), Indonesia (joined in 1962, and left on 30 November 2016), Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (joined in 1973, and left on 1 January 2020), Gabon (1975), Angola (2007), Equatorial Guinea (2017) and Congo (2018).
This means that, currently, the Organization has a total of 13 Member Countries.
Note that China is opting to forge a relationship with Iran to guarantee it has an abundant and cheap supply of oil. China has shown no interest in Kerry’s efforts to convince the country to go green.
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The following paragraph describes China’s cozying up to Iran that has taken place just prior to, and since Biden began his term.
One of the secret elements of the deal signed last year is that China will invest US$280 billion in developing Iran’s oil, gas, and petrochemicals sectors. This amount will be front-loaded into the first five-year period of the new 25-year deal, and the understanding is that further amounts will be available in each subsequent five-year period, provided that both parties agree.
There will be another US$120 billion of investment, which again can be front-loaded into the first five-year period, for upgrading Iran’s transport and manufacturing infrastructure, and again subject to increase in each subsequent period should both parties agree. In exchange for this, to begin with, Chinese companies will be given the first option to bid on any new – or stalled or uncompleted – oil, gas, and petrochemicals projects in Iran.
China will also be able to buy any and all oil, gas, and petchems products at a minimum guaranteed discount of 12 percent to the six-month rolling mean average price of comparable benchmark products, plus another 6 to 8 percent of that metric for risk-adjusted compensation.
Additionally, China will be granted the right to delay payment for up to two years and, significantly, it will be able to pay in soft currencies that it has accrued from doing business in Africa and the Former Soviet Union states. “Given the exchange rates involved in converting these soft currencies into hard currencies that Iran can obtain from its friendly Western banks, China is looking at another 8 to 12 percent discount, which means a total discount of around 32 percent for China on all oil gas, and petchems purchases,” one of the Iran sources underlined.
If your nation’s prosperity has been largely based on revenues from oil exports since the 1960s, how would you feel about America’s drive to convince the world to abandon the use of fossil fuels? Might this be perceived as a threat to your nation’s future? How many of these countries can simply derive new sources of revenue to sustain their economies?
There are other nations, not in OPEC, like the USA, England, Russia, and Canada, which produce oil for internal use and for export. Of these nations, Russia is most notably NOT planning on going green, and Biden just authorized the Nordstream pipeline, removing restrictions that had been imposed by Trump.
Thus, the USA has facilitated Russian oil sales to Europe while simultaneously working with many of Russia’s customers to stop them from using oil. By canceling the Keystone pipeline, we cut off a big part of Canada’s future oil sales to the USA and Canada’s ability to export this oil from the ports to which this oil might have flowed…not to mention all the jobs we killed for Canadians. What kind of screw-your-neighbor foreign policy is this?
If we think the world has grown unstable since Biden’s inauguration, firstly, with missiles being fired at Israel, and with China’s wresting away of freedoms in Hong Kong. More recently, with Russia amassing troops and equipment on its border with Ukraine, and China suggesting the “REUNIFICATION” with Taiwan is inevitable, just imagine the type of instability that could result from disrupting revenues from oil exports to Iran, Iraq, and Saudi Arabia. For that matter, Libya hates us too…remember Benghazi.
Our recent catastrophic exit from Afghanistan has reinvigorated terrorists, at least 5000 known ISIS were set free at Bagram, one of whom self-detonated in Kabul, killing and maiming hundreds, as well as those worldwide who would seek to capitalize on our feckless leadership which selfishly pushes for the world to go green quickly, without regard for the huge economic impact this plan will impose on oil-producing nations around the globe.
By Jennifer Mitchell Towner
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