Here’s a quote from a California candidate for Congress:
Just because oil is found on American soil, does not make it American oil. Unless America is preparing to nationalize its resources, that oil will belong to an oil company. And that oil will go into a world market that we do not control—a market that is subject to the whims of OPEC, terrorists in Nigeria, Russian bullying, China roaring, and our own wasteful energy habits.
I wouldn’t expect the Americans to nationalize oil reserves any time soon (they’re counting on ours, no doubt) – but I’ll make this prediction. As the largest single consumer of oil in the States (the military) does its own assessment, significant pockets of light, sweet crude will end up in ‘military reserves.’
It’s not unprecedented. In 1912, Winston Churchill as First Lord of the Admirality ordered the conversion of the British fleet from coal (which Britain had a lot of) to oil (which they didn’t). Why? Because of the advantages of oil for speed and distance.
To get a secure supply of oil, Churchill helped form the Anglo-Persian Oil Company (ultimately BP) with concessions in Persia (ultimately Iran). With 51 percent of the shares, the government could excercise control over the company, and if necessary over Persia. And we now know where that led to.
One way or the other, as oil gets scarcer, the military will exercise its control. In any conceivable trade-off, oil will go to fuel their Hummers, not ours. And those who complain in the States will be accused of a lack of patriotism or not concerned about national security – which pretty much ends the debate.
