In understanding today's high oil prices, it's helpful to review the historical roots of how we got here. The following article provides some insight (click on link to view to article in its entirety):
Driving the surge in gas prices? The Bush-McCain surge in Iraq
In 1928, oil company chieftains (from Anglo-Persian Oil, now British Petroleum, from Standard Oil, now Exxon, and their Continental counterparts) were faced with a crisis: falling prices due to rising supplies of oil; the same crisis faced by their successors during the Clinton years, when oil traded at $22 a barrel.
The solution then, as now: stop the flow of oil, squeeze the market, raise the price. The method: put a red line around Iraq and declare that virtually all the oil under its sands would remain there, untapped. Their plan: choke supply, raise prices rise, boost profits. That was the program for 1928. For 2003. For 2008. Greg Palast
In 1928, oil company chieftains (from Anglo-Persian Oil, now British Petroleum, from Standard Oil, now Exxon, and their Continental counterparts) were faced with a crisis: falling prices due to rising supplies of oil; the same crisis faced by their successors during the Clinton years, when oil traded at $22 a barrel.
The solution then, as now: stop the flow of oil, squeeze the market, raise the price. The method: put a red line around Iraq and declare that virtually all the oil under its sands would remain there, untapped. Their plan: choke supply, raise prices rise, boost profits. That was the program for 1928. For 2003. For 2008. Greg Palast
5 comments:
Does this also mean the recent DROP in prices due to Bush-McCain policy (because of the change in way of dealing with Iran)?
Or is it because of the drop in demand, the upcoming US presidential election and the financial markets' concern with the mortgage bailouts caused by the deregulation of the mortgage industry?
I think it was Robyn Wright who wrote a good book about Iran, the Shah, Mossedagh, the Dulles brothers. And there are several great books about Irag. And Parry wrote extensively about Iran Contra. He also maintains a site, Consortiumnews.com that has a lot of factual information. Palast has only provided superficial information and left out a lot. The history after World War 1 bears great importance on where oil is today. If you keep posting information like this it might encourage people to read about the history of the middle east.
I understand now....if prices go up it's because of "Bush-McCain policy". But if they go down it couldn't possibly be because of "Bush-McCain policy".
Short term market fluctuations are not synonymous with long term planning. Iran and Irag were carefully controlled by the Allies for various reasons preventing the re-emergence of the Ottoman Empire, preserving stabilty with brutal force, preventing democracy, preserving control and the status of the British monarchy, maintaining oil flow, by agreement. To abbreviate history, OPEC did the US one better by seizing control before their black gold fizzled. They failed to create viable economic prosperity before that time. Hubbert, posthumously appears correct in his projections. You have correctly posted what few are acknowledging publicly. Geophysicists seem united in their conclusion.
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