Monday, May 12, 2014

Issue 333 Control (fuel) May 12, 2014

Fuels like oil and its derivatives are very important to industrialized countries around the world.  It allows us to heat our homes, generates electricity, and of course fuels our vehicles (cars, trucks, boats, planes etc.).  But what happens if that fuel was to be cut off.  This is the threat the United States and Europe face and I'll explain why.

Russian Control:  Russia controls much of the fuel in Europe.  In fact the closer a country is to Russia the more dependent they are on Russian oil.  This is because many of these countries either lack the resources for an alternative source of energy or do not have industries built to access their natural resources.  Therefor Russia becomes very powerful in deciding what they can and cannot do in the region.  Still scratching your head?  I will make it simple, Russia can force any country that relies on its oil to do what it wants by threatening to cut the oil off.  This is how oil is used as an element of control in Europe.  Russia has sway over the entire region due to their monopoly on oil there.  

OPEC:  Organization of Petroleum Exporting Countries is a menace to the United States.  Unlike Russia who holds sway over Europe, OPEC has sway over the United States in a different way.  OPEC can artificially raise the price of oil to influence United States policy.  While the United States gets most of its oil from Mexico and Canada, OPEC holds sway over the stock market when it comes to oil.  So if they hold back on production they can disrupt the market and cause prices to rise to whatever level they see fit.  As such they can make a nice profit or suppress policies in a country like the United States that would disrupt their profits.

Why fuel is important:  Oil is very important to commerce in general.  No train, or plane could run without it in our current energy environment.  We need it to fuel our cars and heat our homes.  So what would happen if the fuel ran out?  Nuclear power is limited due to the number of reactors, solar and wind are nowhere near energy efficient enough, and dams have a limited amount of power they can supply too. In short coal and oil fired plants produce most of the electricity per market share.  If fuel prices go higher it can causes businesses to fail, prices of goods will rise pricing people out of being able to afford food and medicine. Hospitals may be forced to close as they too will not have enough money or power to stay open.  Think of it, if you are diabetic, or are dependent on some form of technology for survival, how are you going to survive if the power goes out for an extended period of time.  The answer is that you won’t.  The elderly and the sickly will die first.  People who need blood transfusions or other treatments will also die because how can we store blood without power.  We will not be able to diagnose cancer patients due to the inability to use the machines we relied upon to diagnose.  Riots over food and other goods will create more havoc as all goods will become so scarce that bread alone may well be worth $100 or more.  It is a nightmare scenario that all nations fear.  If you were alive during the 70's you may remember the long lines for gas and the rationing that went on in the United States.  Well that will be the tip of the iceberg of trouble we all will have to face if fuel becomes too costly or inaccessible.


Conclusion:  Fuel is a tool that helps us get around, get to our jobs, to get things where we want them to go.  It is essential to commerce and our survival.  So far there is no replacement to fuels like oil and so we are currently dependent on oil for most of our needs like plastics and other products which are a byproduct.  So we have to account for this in all future needs of the County and the world. There is a reason why I like green technology.  One is that we reduce waste and our impact on the environment.  The other is that we no longer have to pay the power company money to keep our homes and businesses warm and cozy for we can hopefully begin to make solar, wind or even nuclear viable in the home itself.  In short, be reliant upon no one but yourself.

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