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More wishful thinking than analysis

Reader comment on item: Will the Middle East Lose Its Importance in Washington?

Submitted by Karim (United Kingdom), Aug 16, 2012 at 17:10

What Dr. Miller stipulates is more wishful thinking than actual analysis. It's true that percentage of Middle East contribution to global energy needs has been declining over the last 2 decades, this shift has only happened due to increasing oil prices. With all due respect to Dr. Miller, but Sir you have missed a glaring "technical" reality. Production cost in the Middle East is the lowest in the world. The average cost to produce one middle eastern barrel of oil is about 5 dollars, while it stands at above 40$ in the north sea, and hovering between 20 to 30 US$ in Russia and the former soviet republics. Add the fact that the Middle East is home to the giant oil fields of the world. These oil fields will continue to produce well into the next century after all the oil fields of the world have run dry.

Any cataclysmic decline of the price of oil (say decline to below 40$ a barrel) will wipe out the production potential of the entire north sea oil fields and those of the Oil Sands of Canada, plus a hefty percentage of Russian production, as production will not be economical.

If the quest to develop cold fusion succeeds, it will take the world several decades to retrofit the entire industrial base from fossil fuel dependence to cold fusion, but this will only replace energy needs, and Oil is not just an energy source. Oil is the raw material for everything around us, from the keyboards I am typing this article on, to the plastic that encapsulate our toothpaste to the paint that adorns our rooms and offices, all these materials are Oil based.

I really do hope that the world can wean itself from oil; it is simply not sustainable on the long term to continue damaging our environment in this way, god put this stuff deep beneath the earth and made it impossibly difficult to find, for a reason.

Submitting....

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Reader comments (15) on this item

Title Commenter Date Thread
1China's Energy Needs Make Middle East Important [46 words]SchillsSep 6, 2012 14:24198402
1More wishful thinking than analysis [327 words]KarimAug 16, 2012 17:10197972
I don't think so [72 words]TonyJul 29, 2012 22:55197547
3Oil reliance is over blown [65 words]AhmedJul 10, 2012 17:39197131
1Will the Middle East Loose its Importance? Other energies being sought. [67 words]DebbieJul 8, 2012 18:40197077
3Obama is supporting the terror group moslem brotherhood. [50 words]F GoergeJul 2, 2012 22:33196925
2Will The Middle East Lose Its Importance? [175 words]JudithJul 2, 2012 14:00196894
1Typical of the Secular Viewpoint [163 words]Rollin ShultzJul 2, 2012 06:32196882
Daftest comment I've read [31 words]Andrew WalkerJul 9, 2012 08:45196882
1Not All Prophecy is Garbage [467 words]M. ToveyJul 11, 2012 11:54196882
4Its happening right now [176 words]HarrybabyJul 2, 2012 01:41196876
Oil Does Not Grease The Path to Future Intentions in The Middle East - Never Did [806 words]M. ToveyJul 9, 2012 19:06196876
3A misconception [195 words]HarrybabyJul 9, 2012 23:29196876
Quitting imported oil cold turkey [66 words]
w/response from Daniel Pipes
Richard GordonJul 1, 2012 23:00196874
2Two rights make a new dynamic [88 words]Bernie KesslerJul 1, 2012 22:57196873

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