Oil embargo on the horizon?

Could it be déjà vu all over again? It very well could. The big deal right now in the United Nations is the idea of recognizing Palestine as a new member of the UN. This is fast becoming a Big Deal, and it could become a big deal gone bad if the UN votes to admit them and the US vetoes that vote. (Somehow, the US apparently has that power.) The brown and squishy would hit the revolving blades right quick like after that. Be ready to duck.

One entirely possible scenario would be a repeat of the Arab Oil Embargo of 1973/74. For those of you a bit foggy on your 70s history (and honestly, who isn’t?), Saudi Arabia, in the fall of 1973, took exception to the US and western Europe backing Israel and stopped shipping oil to one and all. That they withheld five percent of the world’s available oil resulted in a quadrupling of the price of oil. Geez-o-Pete, did we have fun.

If you read my short story, “60 Days Next Year”, posted on the New Colonist web site, much of what I put in that story actually happened all over the US in the winter of 1973/74 as we all scrambled to keep on keeping on. It got ugly blindingly fast. And it could again. All we have to do is be a booger when the time comes.

Twenty-eight years ago, America went to voluntary gas rationing. We used an even/odd system, based on your license plate’s last digit. If your plate ended in an even number, or A through M, you got to buy gas on an even numbered day. If your plate ended in an odd number or N through Z, you bought gas on an odd numbered day. It was a simple system, and it drove us nuts. Sure, you could buy gas every other day, but then again, you also couldn’t buy gas every other day. We went crazy.

People were stealing plates so they’d have one of each. Gas stations were limiting how much you could buy, and if you weren’t a regular customer, you couldn’t buy from them at all. Lines for gas stretched around the block. People followed the gas tanker trucks to see where they were going. It was loopy. And we could go right back to that if we press our luck here real soon.

I am not going to get into a political discussion here about whether or not I think the UN should admit Palestine. I’m pretty sure they’ve admitted worse. I am, and will freely admit to being, a big fan of Israel. Still, I think the US can both back Israel and allow Palestine to be a part of one of the most ineffective organizations on earth. Why not? What does misery love?

But do keep an eye on this one, as a veto by the US will most definitely kick US/Arab relations right in the ol’ camel saddle.

Keep your bike tires pumped.  

WikiLeaks Exposes Peak Oil Reality

Oh, geez, Lousie: Here we go. WikiLeaks just pulled the rug out from under the Saudis by publishing the contents of some cables about their oil production — and the fragility thereof. The potential lack thereof. Where have I heard this before? Let me think . . . Oh, yeah, just about everywhere. For years. The only difference is, this comes from the Kingdom itself. This is not good. This is bad, even. Very, very bad.

Look, it’s one thing for a guy like me to sit on the other side of the world and speculate on what might be happening, oil-wise, in the Empty Quarter of the Arabian Peninsula. I’m speculating. That’s a nice word for guessing. I’m making it all up. But as it turns out, I was guessing right. So were a lot of other people, as it turns out. Everyone but the Saudis, it seems. For years (for decades), the Saudis have stood there and smiled and said there were no problems. Everything is fine. Don’t worry. Be happy. And for all of those years, we bought the act. We wanted to buy the act. We had to buy the act.

Back in 2001, I wrote Ghawar is Dying, a short essay for The New Colonist web site, outlining how the beginning of the end might, well, begin. I caught some flak from oil types for it. They wanted to know how I gained access to the restricted oil fields in the middle of the Saudi desert. They were not happy, and I don’t think they believed me when I said I’d never been there. I made the whole thing up, but as it turns out, I think I might have been right. And that was ten years ago.

In 2004 I wrote Sixty Days Next Year, also for my good friends over at The New Colonist. The fictitious events in “60 Days” have yet to come true, but the headlines of the past few weeks out of Egypt show that all things are possible in a great big hurry, and those 60 days could start tomorrow. Please, just remember: I was never there and it’s not my fault. Seriously. It was supposed to be fiction.

If the cables exposed by WikiLeaks portend events yet to come, as in coming soon, we are all in for a wild, wild ride. If the Saudis can’t smooth this one over, we are staring the great peak oil monster right in the face; and buddy, whatever you do, don’t blink. If the Saudis admit they are facing peak oil production, we may see the price of oil rise like a bottle rocket. I remember the Arab Oil Embargo of 1973. The loss of just 5% of the world’s oil supply caused the price of oil to quadruple. Quadruple. With oil bouncing around $90 when I checked it the other day, are you ready for $360 oil? No. No you aren’t. No one is.

Best case scenario: The Saudis do what the Saudis do better than anyone else on earth: They smooth it over. They schmooze. They smile and talk their way out of it. And in all honest, I do sincerely hope they can. Worst case scenario: Gasoline in the United States goes to over $10 a gallon in very short order, and is rationed like you wouldn’t believe. I remember the gas lines in ’73. I drove a VW back then, so it was no big deal. This time around, it will be different. It won’t be a four-month political event. It will be permanent.

My advice to you: If you don’t have a good, practical bicycle, go buy one, and soon. If you do have a bicycle, go buy baskets for it, fenders, a good lock and some lights. And buy a bicycle helmet, rain cape and cycling gloves while you’re at it. You are going to want all of that, and very soon. I hope I’m wrong. I hope the Saudis can schmooze their way out of this one, as they have in the past. But if they can’t?

Welcome to our brave new world. Just don’t say I didn’t warn you.