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How America’s Oil and Gas Dominance Has Weakened Iran

Posted on 3/9/26 at 6:40 am
Posted by ragincajun03
Member since Nov 2007
29229 posts
Posted on 3/9/26 at 6:40 am
quote:

The left has intoned for years that climate change poses a clear and present threat to U.S. national security. The Biden Defense Department produced two dozen reports on the subject and strategized to reduce the military’s CO2 footprint, such as by procuring 100% electric civilian vehicles.

Soldiers were required to undergo “climate literacy education.” Pentagon officials recommended that “sustainability literacy metrics” be integrated into the “consideration of promotions, evaluations, and awards.” America’s adversaries must have chuckled and cheered.

As the war in Iran lays bare, the real national-security risk was the left’s climate agenda, which threatened to enrich hostile regimes and empower them to weaponize their energy resources. America’s fossil-fuel dominance has substantially weakened the governments in Russia and Iran and their ability to wage war against the U.S. and its allies.


quote:

Unlike during past oil shocks in the 1970s and the first Gulf War, the U.S. doesn’t depend on the Middle East for oil. The vast majority of the oil that Americans consume is now produced in the U.S. and Canada. The exception is California, which imports 60% of its crude and 15% of its gasoline as a result of anti-fossil-fuel policies that have constrained in-state production and limited pipelines from America’s Gulf Coast. Still, most of California’s crude imports come from South America.

Americans will see higher prices in the short term because oil is traded globally. But we face little risk of actual supply shortages, unlike during the 1970s. More vulnerable is China, which gets most of its oil from the Middle East and Russia.


LINK
Posted by loogaroo
Welsh
Member since Dec 2005
42398 posts
Posted on 3/9/26 at 6:42 am to
Makes no sense WTI is spiking the way it is.

Posted by Nosevens
Member since Apr 2019
19326 posts
Posted on 3/9/26 at 6:59 am to
Oil traders and speculators are bad enough for this problem but since the biggest of the beasts like Blackrock and JP Morgan have been known to dabble in illegal practices I suppose prices in markets are manipulated a little bit. Oil trades on a world market and we suffer those price swings regardless how much is produced here. But this is but a 5 minute issue as it always settles down. If there is a chance of a Iran that exists in pre 1979 where they aren’t in the terrorist support business then maybe we can get some peace over there before time expires
Posted by Penrod
Member since Jan 2011
55573 posts
Posted on 3/9/26 at 7:00 am to
quote:

Makes no sense WTI is spiking the way it is.

It makes sense to me. The supply of oil has been temporarily reduced so the price has gone up. That’s what economist teach us to expect to happen.
This post was edited on 3/9/26 at 7:01 am
Posted by ragincajun03
Member since Nov 2007
29229 posts
Posted on 3/9/26 at 7:13 am to
It's also worth noting that oil (let's use WTI price mark) was about $75 in January of 2025. It fell pretty quickly after President Trump convinced OPEC+ to open their taps and increase production to bring oil prices down.

Now we have a situation where barrels from some of those key OPEC+ countries are under threat/doubt of not making it to market.

So at a MINIMUM, it's almost as if we're back to pre OPEC+ opening the taps phase, where WTI goes into that mid 70s range. Couple that with worries from markets and/or speculators grabbing up barrel calls, and it's easy to see how oil has at least gone over $80. I do think it's a bit early in the game for it to go over $100, though Russia invaded Ukraine in late February 2022, and we saw WTI go from low 90s the day before the invasion to over $110 once the fight was on.
Posted by theballguy
HSV (Dealing only in satire)
Member since Oct 2011
37260 posts
Posted on 3/9/26 at 7:29 am to
I'm not surprised about it spiking but it will even back down shortly. Not concerned in the least.

I'm pretty sure we've seen it way worse and magically we survived. No need to hand-wring over this shite.
This post was edited on 3/9/26 at 7:30 am
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
98180 posts
Posted on 3/9/26 at 7:32 am to
quote:

Makes no sense WTI is spiking the way it is.




Muh Price Gouging!! Remember when that was the non stop talking point. Well thats what they arw doing

Getting it in before it plummets. And Orange giving a lifeline to his old pal Vlad
Posted by Timeoday
Easter Island
Member since Aug 2020
23179 posts
Posted on 3/9/26 at 8:27 am to
quote:

Getting it in before it plummets. And Orange giving a lifeline to his old pal Vlad


You betcha. It should not take long.
Posted by pizzathehut
west monroe
Member since Jul 2016
1377 posts
Posted on 3/9/26 at 9:21 am to
do most of you know about oil quality , production and economics
Posted by Jack Ruby
Member since Apr 2014
27322 posts
Posted on 3/9/26 at 9:32 am to
Ah yes. That dominance of $5/gallon in 10 days.
Posted by TigerAxeOK
Where I lay my head is home.
Member since Dec 2016
38011 posts
Posted on 3/9/26 at 9:45 am to
quote:

It makes sense to me. The supply of oil has been temporarily reduced so the price has gone up. That’s what economist teach us to expect to happen.

Agreed, but there's definitely also some manipulation happening.

The US has the production to make up for the gap but the Hormuz Strait is still an issue. Plus, it becomes a bit of an issue to start exporting more oil from the US when replenishing the SPR has become a highly critical national security issue.
Posted by Penrod
Member since Jan 2011
55573 posts
Posted on 3/9/26 at 9:51 am to
quote:

Agreed, but there's definitely also some manipulation happening.

Always is.
quote:

Plus, it becomes a bit of an issue to start exporting more oil from the US when replenishing the SPR has become a highly critical national security issue.

I don’t see it. Our hemisphere is self-sufficient from an oil and gas perspective. The SPR was conceived and built when we depended on Middle East oil. That time is gone as is the need for a big SPR. I can’t think of a circumstance that would necessitate an SPR. We certainly don’t need it now. Maintaining it is basically supporting Europe.

Since we already have one, it makes sense to speculate and buy low and sell high. This is what Trump sensibly wanted to do when oil was basically free. Due to the slow fill rates we would have only made a few billion dollars on it, but it was basically free money, and we should have done it.
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