Freedom Fry

Look at that freedom fry! A collection of political hotlinks and original articles.

Friday, October 07, 2005

What Does Energy Independence Mean for the Middle East?

2:15 PM

An Oil RigHas anyone thought about this very important question? The more the U.S. and the world become energy independent, or based on non-oil energy sources, the less the Middle East will have wealth:

  • Iran's exports are 80% petroleum, making up roughly 6% of its GDP. "Iran's economy is marked by a bloated, inefficient state sector, over reliance on the oil sector, and statist policies that create major distortions throughout."
  • Iraq's exports are 83.9% crude oil, making up roughly 15.5% of its GDP. "Iraq's economy is dominated by the oil sector, which has traditionally provided about 95% of foreign exchange earnings."
  • In Saudi Arabia, "the petroleum sector accounts for roughly 75% of budget revenues, 45% of GDP, and 90% of export earnings."
  • "Yemen's...economic fortunes depend mostly on oil."
  • The wealth of the United Arab Emirates is based on oil and gas output (about 30% of GDP).
  • In Kuwait, "petroleum accounts for nearly half of GDP, 95% of export revenues, and 80% of government income."

The U.S. imports the most oil in the world. What will become of these people when either the oil dries up or demand for oil goes down significantly? Well they either adapt or die. Yet what are you going to adapt to when you are in a desert? These counties will likely be poor and more resentful of the U.S. This likely means more terrorism.

This is not in our best interests.

How about working with these countries to develop good solar power technology? We will be dependent on them but we will have established relationships with them. We will have helped the environment, and we will have reduced poverty. All the power in the world can't be the U.S.'s. Other countries need to have bargaining chips. Or else they will revolt.


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