World could handle Iran oil cutoff: Bodman (U.S. Energy Secretary)

[sabra]

http://today.reuters.com/news/newsarticle.aspx?type=topNews&storyid=2006-06-06T141721Z_01_N06123839_RTRUKOT_0_TEXT0.xml&src=060606_1035_TOPSTORY_iran_sees_positive_signs_in_proposal

World could handle Iran oil cutoff: Bodman

WASHINGTON (Reuters) - The world economy could handle any theoretical cutoff of Iranian oil exports "for a while," U.S. Energy Secretary Sam Bodman said on Tuesday.

"We certainly could handle it for a while," Bodman told reporters.

...

Energy traders are concerned that if the United Nations punished Iran with sanctions, Tehran could try to hurt the Western economies by stopping some or all of its oil exports -- as Iraq used to do before the U.S. invasion in 2003.

[AnOhioan]

1. And Big Oil would make even more $$

Almost sounds like a dare to me.

[UpInArms]

2. Yeah! "For a while"! So when do the bombs start dropping? .. eom

[cliss]

3. Gotta love that Mr. Bodman.

He's such a comedian. We certainly could handle it for a while.

Like maybe 10 minutes?

If Iranian oil were cut off, the world's economies would be brought to their knees. Oil would skyrocket, to maybe $150/barrel. This would paralyze the world's economies. The US doesn't import Iranian oil, but Europe, China and Japan do. It's a big chunk of their petroleum imports. But don't take my word for it....

http://www.fromthewilderness.com

[puerco-bellies]

4. If Iran stops oil exports a barrel of crude would hit 110+ on the NYMex

In about 3 minutes. We don't get oil directly from Iran, but those who do will be competing with the U.S. for the remaining oil via open bidding on the world's exchanges. This guy is an idiot.

[dufrenne]

5. actually,

sorry to interupt your echo chamber here, but there was an excellent post on huffo...I forgot by who, calling for the US to call any Iran cutoff bluff. The post argued that the strategic reserve could be used to maintain us (and other countries that we would sell to) in the interm, and the blow to Iran, which derives so much of its revenue from oil, would be far greater. Iran would fall to its knees. Yep, 100 dollar oil here would be bad, but to be honest, the higher oil goes, the quicker the move to alternative sources...Meaning high oil prices inevitably end up killing the oil dealers, as the addicts search for a cheaper fix. Hell, if we had higher oil or a gas tax long ago, perhaps we would have made a far earlier move to alternative technologies. So, let Iran cut-off the world. They don't have the guts or the stomach to do it...and even if they do, they'll end up screwing themselves in the end.

[UpInArms]

6. Well then, why in the world don't we cut off our nose to spite our face!

n/t

[dufrenne]

10. hey...

as long as gas is cheap...people have no incentive to develop any new technologies...Look to Europe and Brazil. There, energy prices have been high for ages, which forced them to adapt. Now, Brazil has almost weaned itself completely off of foreign oil by using ethanol and many countries in Europe are using wind and solar power in far greater amounts than in the US. Have you not noticed -- since gas prices have been high in the US -- more news stories about hybrids, ethanol, wind farms etc...Even with a year or two of high energy prices, our long slumbering ingenuity has awoken to tackle the problem. Yes, high energy prices are tough for families and businesses to handle, but a bit of suffering now will payoff for the country as a whole later, environmentally and politically.

[UpInArms]

12. you want to know what pisses me off?

Ford has been making and marketing "Flex" cars for years! (but not in the USA)

Chrysler has been making and marketing "Smart" cars for years! (but not in the USA)

GM is just stoopid - no excuses.

This country has done everything in its power to prevent alternative energy and has denigrated every way to break its fossil fuel dependencies.

These corporations have screamed bloody murder about the environmentalists and CAFE standards and how all of the would "ruin" their profits.

This (attacking or sanctioning Iran) is just another smoke screen.

When the gas prices go up, the only ones who profit are the Raymond Lees and Cheneys and Bushes.

You and I will still get shafted and we will not be any closer to alternative energy in this country.

(edited for clarity)

[dufrenne]

13. I don't disagree

that the real change won't come from the top or big corporations...it's the small businessmen and entrepeneurs that will make the change...it'll happen at the local level. Even on the DU thread right now, there are stories about using methane produced in landfills to heat homes. The change is happening. High energy prices will only expedite the process....

[Trillo]

19. I'm pretty pissed about that too.

All the cars here are "now" considered "luxury" vehicles of some kind or another, even small economy vehicles.

In the 70s, it was possible to find a basic economy vehicle in the U.S., the Ford Caprii was one such vehicle, also the Volkswagon Bug, not the new luxury, value added model, but the old Bug. No power windows. No automatic transmission. No A/C. No cruise control. Etc.

No more. Now everything is for the pampered ass with the fat wallet. Screw the minimum wage worker, they're lucky if they have any transportation beyond their feet.

The flex fuel option is definitely, in the current environment, something that any vehicle should have. I'm thinking it should run on gasoline, alcohol, CNG, propane, hydrogen, and possibly others, for starters. If gasoline goes up too much, just fill up with methanol, instead. But the capitalists and thier lobbyists have corrupted the goverment so throughly that the consumer is perceived as an endless pit of money, and nothing more, essentially to be scorned in all other regards except for their buying power.

Today's version of Henry Ford would likely say, "The consumer can have any fuel they want, as long as they want gasoline."

[redqueen]

7. This was a post on "huffo"?

Are you referring to Arianna Huffington's blog?

Well yes then by all means, let's take some anonymous amateur pundit's word for it and back the administration up on this one!

/sarcasm

[Tandalayo_Scheisskopf]

8. That would be...

Raymond J. Learsy. He's good, but I am not sure I subscribe to everything he posits.

[htuttle]

9. Well, let me echo this back to you, then

If we are engaged in a war with Iran, they're going to need the Strategic Petroleum Reserve for it's intended purpose -- supplying the US military. They burn an incredible amount of fuel.

And it would likely not be just Iran's oil that gets disrupted. I don't know if you are old enough to remember the last time there was a hot war in the Persian Gulf, but in the 1980's, oil tankers from the entire region were disrupted -- including the Emirates, Kuwait and Saudi Arabia. They present a huge, vulnerable target, and the Gulf is nearly impossible to protect due to it's geography.

Iran really does not need it's oil revenue as much as the world needs it's oil. I wouldn't count on them 'falling to their knees'.

But hey -- everything I predicted about Iraq came true. You believe who you want to about the effects of an attack on Iran. Maybe check their track record first, though.

[Just Me]

21. Has the U.S. always been the center of the freakin' universe or,...

,...is this a recent develeopment? :shrug: These people can't/won't/are incapable of accepting reality. We are not nearly as powerful as the self-centered HAVE to believe. We are NOT omnipotent!!!

There is a great big world out there that's already fed up with this country's leaders' obnoxiousness and belligerence. I believe PNAC's aim to expand the oil war will cross the line (has already for many nations, oil-producing or not), and the rest of the world WILL take a stand against this country and to very serious detriment to our nation and her people. But damnit!!! As we consume ourselves into oblivion, we still, as a whole, have complete faith in our own righteousness.

GAWD,....I suddenly flashed the moment when Bush talked about his humility!!!! :puke: The man's an empty shell being directed by the greediest, most selfish and delusional monsters.

Take me away from this insanity!!!!

[wakeme2008]

15. read the post and it is BS

what he leaves out is the price.... Sure at $10 a gallon we could call Iran's buff..

[daleo]

17. I imagine Iran has its own Strategic Reserve

A reserve of money and goodwill that it could call upon. That would probably last as long as the U.S. strategic reserve.

Besides, if the U.S. depleted its reserve it would be in a vulnerable position (examples - other foreign powers, hurricanes and natural disasters, refinery explosions or shutdowns, predatory monopolistic pricing by oil companies or Enron like corporations).

[NickB79]

24. And how much will it cost to refill the reserve again?

Remember, a lot of that oil was bought back in the 90's, when oil was $20/barrel. Even if the prices came back down to today's prices after an oil embargo by Iran failed (doubtful), we would be paying $70 per barrel to refill our reserves.

[dufrenne]

11. Here's the Huffpo

article...

http://www.huffingtonpost.com/raymond-j-learsy/irans-khamenei-warns-teh_b_22178.html

interesting reading...

[BR_Parkway]

14. So how come the price at the pump jumps every time they raise the price

of a barrel of oil? If we could do without their oil "for a while" then what prices they set shouldn't affect us - the power of the marketplace and all

[daleo]

16. Sure, it's not like the earth would stop spinning in its tracks

But it would cause some serious problems, like a U.S. recession.

[movonne]

18. I cannot believe anything they say...look at Iraq, did one thing they

said turn out the way they said...

[joe_shmoe]

20. **PETITION AGAINST MILITARY ACTION AGAINST IRAN**

It is with grave concern that I observe the growing threat of a new U.S. war--this time against the people of Iran.

For a collection of articles and resources on this subject you can visit this link: http://reseaudesign.com/research/iran/iran_summery.html

I'm starting up a petition which I will be sending out to as many members of Congress as possible. I'm asking for help to get this signed by as many people, possible in the next month. Send it to as many people you can.

http://www.petitiononline.com/n0war1rn /


thanks,
J-shmoe

[teryang]

22. Go for it!

I have a cynical theory that this is why the markets are currently crushing the natural resource and energy stocks. Wring out the small hands before driving the prices way up with some stupid action vis a vis Iran. The fat cats are loading up right now.

[raccoon]

23. Yeah, just like money made from Iraq oil was going to go to

rebuild Iraq.

Fooled me once, won't get fooled again. :silly: