The Axis Of Oil
The Bear on Aug 21 2008 at 6:27 am | Filed under: Energy Policy
Security: What do Vladimir Putin, Hugo Chavez and Islamic extremists have in common? They’re funded by America’s thirst for foreign oil. If drilling isn’t a cure by itself, it’s a start.
Wars aren’t cheap, even when they go well. But Russia has plenty of money to burn on war. It’s flush with Western cash because it’s flush with oil and natural gas. If Putin wishes to recreate the domain of the tsars, he has the wherewithal for that grand ambition.
The resurgent Russian empire is one of the big winners in the massive wealth transfer that has taken place in recent years with rising oil prices. OPEC countries are cleaning up, too. The U.S., which consumes 24% of the world’s oil while producing just 10%, is the main source of the oil powers’ new riches. Not all this money goes into war, terrorism or other evils. Some is used to build over-the-top commercial real estate projects in places such as Dubai. Quite a bit finds its way back to the U.S. to finance our national debt.
The membership list of the Axis of Oil seems to include more than the normal share of bad actors. One is Putin, who might be more circumspect if his country were not so rich. Venezuela’s Chavez would not be exporting revolution Castro-style if he did not have a cushion of oil wealth that, among other things, keeps his own people pacified with cheap gasoline.
Iran wouldn’t be thumbing its nose so brazenly at the U.S. and Europe if it didn’t export oil and occupy one side of the choke point for all oil leaving the Persian Gulf. Islamic extremism would be less of a threat if the Wahhabists of Saudi Arabia had difficulty funding its global spread through madrassas and mosques.
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