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| VOLUME 3 ISSUE 4 - April, 2003 (Printable Version) | ||
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THE
WAR ON IRAQ: THE MONTH LEADING UP Last month, the United States, Britain, and Spain introduced their resolution expecting to win U.N. support to defuse Iraq by taking military action. The resolution would have permitted war against Iraq anytime after Monday if Iraq did not disarm by that time. However, after several weeks of diplomacy from the Bush administration, they were unsuccessful in convincing the majority of the council's 15 members that now was the time for war. On Monday, March 17 the U.S. and its allies ended diplomatic efforts to win U.N. approval for an ultimatum to Iraq. A threatened French veto was to blame for their decision. The way then became clear to open a war on Iraq at any given time without Security Council authority. Sir Jeremy Greenstock, Britain's U.N. Ambassador stated that the French had made it perfectly clear that any resolution authorizing military action against Iraq would be vetoed. However, French Ambassador Jean-Marc de la Sabliere denied responsibility for the impasses. He stated that it was apparent Washington could not get a majority of nine votes on the Security Council. "The majority of the council is again opposed to a resolution authorizing the use of force, " he said. As diplomatic efforts failed, the U.S. advised U.N. weapon inspectors and other foreigners to vacate Baghdad in order to escape massive destruction. Warfare could have began within hours of the U.N. inspectors leaving Iraq. President Bush addressed the nation Monday night to explicate his thoughts on why war would be necessary if Saddam Hussein did not leave Iraq immediately. White House spokesman Ari Fleischer stated that, "The United Nations has failed to enforce its own demands that Iraq immediately disarm. As a result, the diplomatic window has been closed." The early morning
hours of Thursday, March 20th brought the first wave of Coalition forces'
attacks on Iraq, including a so-called "decapitation attack"
aimed directly at Saddam and the Iraqi leadership in Baghdad. U.S. BIGGEST BUYER
OF IRAQI OIL AMID WAR PREPARATIONS New York, March 14 (Bloomberg) -- As the Bush administration masses troops in the Persian Gulf in preparation for a war to topple Saddam Hussein, U.S. refineries have been the biggest customers for the crude oil Iraq produces. Shipments to the U.S. more than tripled from September to January, according to the Commerce Department. Iraq supplied 17.1 million barrels in January, 6.4 percent of total U.S. oil imports and up from 5.15 million four months earlier. The jump in imports came as an illegal surcharge that benefited the Iraqi government was dropped and as refiners sought alternatives for crude from Venezuela, where a strike crippled oil production. ``The U.S. is by far the biggest customer of Iraqi oil,'' said Eric Kreil, an analyst at the Energy Department's Energy Information Administration. ``Iraqi oil is a pretty good substitute for the Venezuelan grades that were cut off.'' Iraq pumps about 3 percent of the world's oil and is the third-largest producer in the Middle East. The prospect of a war in Iraq has helped boost the U.S. benchmark oil price by 25 percent since November. Iraq is allowed to export oil under an exception to United Nations sanctions imposed after the country's 1990 invasion of Kuwait. The UN must approve Iraq's oil sales, and proceeds are designated to pay for food, medicine and oil-industry equipment. Global Market The surcharge, which helped the government skirt UN control of oil revenue, stopped toward the end of last year, said George Beranek, an analyst with Petroleum Finance Co. in Washington. That made Iraqi crude competitive with oil from other sources. The global oil market doesn't discriminate against a country's oil as long as it's priced competitively, said Youseff Ibrahim, editor-in-chief at Energy Intelligence Group Inc. in New York. ``It's not a deliberate decision by the U.S. or anyone'' that made the U.S. the largest user of Iraqi oil, he said. About two-thirds of the oil Iraq exported in February was going to the Americas, or 1.12 million barrels, according to an analysis by Energy Intelligence. Half of that was headed to the U.S., matching the pace of imports the Commerce Department reported for January. Other destinations for Iraqi oil in the Americas were Brazil, Mexico and the Caribbean. U.S. imports of Iraqi oil rose by 64 percent in November from October, after falling to a four-year low in September. They continued to climb in December and January, according to the Commerce Department data, released this week. Iran, Libya The U.S. doesn't import
oil from Iran and Libya, two other states that the government has identified
as supporters of terrorism. The U.S. has imported little Iranian oil since 1979, according to Lowell Feld, an international oil-markets analyst at the Energy Department. ``U.S. sanctions have waxed and waned since then,'' he said. ``The last time the U.S. imported Iranian oil was in 1991,'' when the government allowed limited shipments. Bush said in April that he would only support lifting U.S. sanctions against Libya and Iran if they acknowledged past acts of state-sponsored terrorism. U.S. refiners have been buying Iraqi oil as an alternative to supplies from Venezuela, which were cut off when workers went on strike in early December. Venezuela met 10 percent of U.S. oil needs before the strike began. Iraq's Basrah and Kirkuk grades are reasonable substitutes for the crude produced in Venezuela, which is a high-sulfur or ``sour'' grade. ``Iraq got an additional
boost from Venezuela,'' said Beranek. ``U.S. refiners took any bit of
crude they could get, particularly sour crudes.'' ``There was a certain stigma associated with taking Iraqi crude because it was assumed that you paid a surcharge'' that benefited Hussein, Beranek said. The UN forced Iraq to end the practice through a pricing policy that made any oil that carried the extra cost more expensive than the market would bear, Beranek said. Some refiners may have started shunning supplies from Iraq as war in the country looms. ``Buyers are cautious about planning for Iraqi shipments with the war coming,'' said James Ritterbusch, a senior analyst for Prudential Securities Inc. in Galena, Illinois. ``Imports from Iraq have probably already fallen.'' ChevronTexaco Corp. hasn't loaded any cargoes of Iraqi crude oil since early this year, said Chris Gidez, a spokesman for San Ramon, California-based company. ``Last year we imported a total of 44 million barrels of Iraqi oil,'' Gidez said. ``We could resume purchases under the UN program or under some other circumstances if the situation is right. There's no policy of not using Iraqi oil.'' Valero Energy Corp., the third-largest U.S. refiner, has cut back on loading Iraqi oil since the beginning of the year, the Wall Street Journal reported this week, without citing anyone. The company didn't return phone calls from Bloomberg News. ChevronTexaco and Valero were the top two U.S. importers of Iraqi crude oil in November, according to the latest figures available from the American Petroleum Institute. [In accordance
with Title 17 U.S.C. Section 107, this article is reprinted and distributed
without profit to those who have expressed a prior interest in receiving
this information for research and educational purposes.]
Our country needs a national energy policy enacted as soon as possible. If Congress fails to act on a policy, energy prices will continue to rise. For two decades, the share of the average family budget spent on energy steadily declined. But since 1998, it as skyrocketed by 25 percent and that's a hardship for every family. If Congress fails to act, our country will become more reliant on foreign crude oil currently pegged at 56 percent, putting our national energy security into the hands of foreign nations, some of who do not share our interests. Our environment will suffer, as government officials struggle to prevent blackouts that could happen this summer by calling on more polluting emergency backup generators and by running less efficient power plants. I am pleased that United States Secretary of Energy, Spencer Abraham has developed a plan for President Bush to move our country into a sound energy strategy that will benefit us well into the 21st century. The plan addresses all three key aspects of the energy equation: demand, supply, and the means to match them. First, it reduces demand by promoting innovation and technology to make us the world leader in efficiency and conservation. Second, it expands and diversifies America's supply of all sources of energy-oil and gas, clean coal, solar, wind, biomass, hydropower, and other renewables, as well as safe and clean nuclear power. Lastly, the plan outlines ways to bring producers and consumers together by modernizing the networks of pipes and wires that link the power plant to the outlet on the wall. Hopefully another aspect of energy can be explored as a part of an energy plan-- drilling in the Alaska Arctic National Wildlife Refuge (ANWR). The federal government should allow drilling in the coastal plain on the northern edge of the ANWR. The refuge itself, which got special protection in the late 1970's, is enormous--19.6 million acres to be exact. Thanks to advances in technology, fewer than 2,000 acres would be affected by oil development and that is less than one-tenth of 1 percent of the ANWR. America must put into place a long-term national energy policy that includes finding and producing more of its own resources. It's not in the national interests of this country to continue to depend on unreliable energy sources-some of which are actually our enemies. At the time of this writing, we import about 750,000 barrels of oil a day from Iraq. There are some environmental activists who oppose oil development in the ANWR. The fact is Alaska's North Slope is a great place to look for oil. It has supplied 20 percent of America's domestic oil for the past 20 years. The largest oil fields in America are found there, including our largest and second largest, Prudhoe Bay and Kuparuk. Our most promising prospects for oil is along that northern edge of ANWR. These environmental activists are opposed because they believe oil development might harm the caribou herd and other wildlife. They have based their case on 99 percent fact-free rhetoric. I believe in the judgment of those who have spent their lives studying and finding oil fields. I hope Congress will open up the ANWR for the benefit to Alaskans who support it, and most importantly, for the nation that needs it. Stuart Pigler is
a member of the National Advisory Council of the African-American leadership
network Project 21 and a former television commentator in Grand Rapids,
Michigan. Louis Gerstner, the
super turnaround chairman of IBM, said it best, "Public schools are
measured by what society spends on them, not by what they give back. Until
society measures the Value of Education, it is impossible to make informed
judgements about how much we should spend on education." Better yet,
until we reinvent the environment in which public school systems have
to exist, we can't expect much in terms of result or reform. The Transportation
Alternatives Plan will provide public transportation in all the major
corridors, establish park and ride lanes, offer local inner city shuttles,
and connect communities. Everyone likes the plan, however, the problem
appears to be that we are afraid to make the decision to adequately fund
it. How many times have you looked back and wished we had taken advantage
of that opportunity. |
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