Oil and war in the Middle East

Trevor Craig

Energy Science 110

Oil & War in the Middle East

9/7/11 

This lecture was about how the United States spends lots of money on foreign oil and how that affects our country and the decisions it makes. Many people believe that oil was a major factor in going to war. When we look at the amount of oil we have proved we have in reserve for 2009, the United States only has 21 billion barrels, which at the rate of use right now will run out in 12 years, where Iraq for example had 115 billion barrels of proved reserves and is expected to run out in 133 years. The United States will soon be out of oil.

In this new world oil is the new gold, so who has the oil? National oil companies produce 75% of the world’s oil and have 90% of the global oil reserves. National oil companies do not want us to drill or get any of their oil; they often can artificially regulate the price that they are selling it to us. Oil is quickly becoming one of the biggest and most profitable businesses, in 2009 7 of the top 10 highest revenue companies where oil companies, and then in 2011 8 of the top 12 highest revenue businesses where oil or gas companies.  

So with this new market of oil the United States is falling behind, and other countries like Iraq are starting to gain money from other countries, including our own. That fact could be a major factor for why we went into Iraq. Production for 1 barrel of oil in Iraq costs only 5$, and can be sold for $105, making a net profit of $100 and if oil continues to rise than the net profit will continue to go up and make them become a very rich nation.

Maybe the United States went into Iraq to try and get some of the oil reserves which would prove to be very profitable. But if this had been the plan than it has been very ex pensive costing the United States 9.3 trillion dollars in just ten years, and it has also cost many lives, Iraqi civilian death is estimated to be between 86,661 – 94,558 for the years 2003-2008. This has been an expensive war, which also has been full of deaths, for what some call the greatest treasure, oil. With oil prices on the rise and the United States supply of oil quickly decreasing, the United States needs to find a way to keep up with this world market, while not resorting to war as the answer.

Paramount- Superior to all others.

Immanent- Existing or remaining within.

ENSC110 Craig Oil & War in the Middle East