posted on December 6, 2002 01:27:15 PM new
Can someone explain to me why the U.S. is so interested in middle east oil when it doesn't export that much from these countries? I have some kind of mental block with this one. Thanks.
posted on December 6, 2002 01:51:31 PM new
Oil is like gold. It does not matter where your share comes from because there is a global market and what happens to any part of the market effects it all. If there is such a terrible disruption that countries have to seek supply from unaccustomed sources you can be sure it will be more expensive as transport is a major cost factor and the minimum possible infrastructure is used to keep costs down. You don't build extra supertankers or oil pipelines to sit around waiting for business like a taxi sitting at the airport waiting for fares. If you bid to take away another customer's usual supply it has political costs as well as monetary.
posted on December 6, 2002 02:18:30 PM new
And oil is power...The State Department described Iraq as a "stupendous source of strategic power, and one of the greatest material prizes in world history."
posted on December 6, 2002 03:08:42 PM new
Thanks for your comments gravid & Helen. It gets so complicated (for me) to understand, I forgot what the purpose was in the first place.
