Jerome R. Corsi, a Harvard Ph.D., is a WND senior staff reporter. He has authored many books, including No. 1 N.Y. Times best-sellers "The Obama Nation" and "Unfit for Command." Corsi's latest book is "Who Really Killed Kennedy?"More ↓Less ↑
With oil closing at $96.20 a barrel on Friday and the United States importing as much as 12 million barrels of oil daily, Americans are now paying other countries some $1.15 billion per day for continued dependence upon foreign oil.
On a yearly basis, that amounts to some $421 billion for foreign crude.
By comparison, oil was averaging $24 a barrel in Jan. 2001 when President George Bush was inaugurated for his first term. At that time, there was an outflow of only $288 billion per year for foreign oil.
With Turkey threatening to invade Iraq to attack Kurdish insurgents and with Pakistan currently under martial law with the prospect of a presidential election in January still shaky, we’re on the verge of oil topping $100 per barrel.
Should Israel or the Bush administration decide to launch a pre-emptive strike on Iran, oil could easily skyrocket to more than $125 a barrel overnight.
Rapidly rising oil prices are putting great pressure on the U.S. dollar, as sending overseas more dollars to buy foreign oil aggravates an already negative balance of payments situation.
The dramatic oil price increases of recent months have resulted in oil windfall profits to countries which are sometimes less than certain friends of the United States.
In the 1980s, President Reagan was able to pressure the fall in the Soviet Union, in part by working with oil producing countries including Saudi Arabia to increase world oil supplies and push the price of oil down to under $14 a barrel in 1989, thereby squeezing Russia’s oil exporting revenue.
Today, Russia, with oil exports of 6.57 million of oil a day in 2006, is not far behind, with over $600 million a day in oil revenue at current prices.
Iran, the United Arab Emirates and Venezuela import over 2 million barrels of oil a day, realizing over $180 million.
Iran uses much of its oil windfall profits to support Islamic radicals and terrorists, including Hezbollah in Lebanon and Hamas in the Gaza, both sworn enemies of Israel.
Dubai, rapidly becoming the Singapore of the Middle East, has accumulated more than $100 billion sovereign funds available for international investment.
Venezuela’s windfall oil profits provide a strong economic base from which Hugo Chavez continues to rail against the United States in South America and around the world.
A Standard Charter bank study estimates that sovereign wealth funds, largely held by the OPEC oil producing countries, could grow from their current value of $2.2 trillion to $13.4 trillion, largely fueled by windfall price increases in their oil exporting revenue.
Saudi Arabia, the world’s largest oil exporter, exported over 8.65 million barrels of oil a day in 2006, meaning that today the kingdom leads the world at realizing more than $832 million a day in oil-import revenue at today’s prices.
In recent years, the EIA reports estimate the U.S. is approaching importing approximately 60 percent of the oil we consume, as much as 12 million barrels of the 20 million barrels Americans use every day, in rounded numbers analyzing U.S. oil imports and consumption over the past 3 years.
Editor’s note: The November issue of WND’s monthly Whistleblower magazine, titled “HOW GLOBALISM IS DESTROYING THE U.S. ECONOMY” – focuses exclusively on the future of the U.S. economy, and answers key questions like: “If inflation is so low, how come food and energy cost so much?” “What is the ‘housing bubble,’ and why did it burst?” “What’s really going on with the stock market?” “Is America heading into a recession?” “Will the dollar collapse in 2008?” and “What will happen to the price of gold?”