Mad Max and the Iran situation
October 3rd 2008 06:42
Here in Atlanta and across the southeast, our gasoline supplies have been way down and lines at gas stations (on the occasions when you can find gas) have grown excruciatingly long. It really has been a mind-boggling situation reminiscent of a post-apocalyptic "Mad Max" world in which folks treat gasoline like gold and are willing to kill or die to get it. I filled up my tank on Monday after waiting in line for 30-40 minutes. Even then, I had to drive ten miles to find a station that even had gas.
I don't really remember waiting in gas lines back in the oil and gas shock of the 1970's, so this was a new experience for me. Initially, it was amusing in a "this is just crazy" kind of way. After a few minutes, though, it became tiresome and quite disconcerting. Before these recent supply problems, my complaints were mostly about the rising price of gas. When you can't get it at all, though, the price of gas drops way down on the complaint list.
Thankfully, the supplies are starting to get back to normal. Most gas stations in my neighborhood have had at least some gas the last couple of days. Why did it happen, though? I heard that refineries had already cut back on production after the recent drop in demand. Then, Hurricanes Gustav and Ike resulted in a shutdown of several refineries. Those refineries have been gradually brought back online, but they have been slow in ramping up their production levels. With the supplies already being tight, the hurricanes' impact really put a choke-hold on the southeast.
This whole experience made me realize how devastating a war with Iran could be. Iran claims that it would do everything possible to cut off the Strait of Hormuz if we go to war with them. From what I've read, 40% of the world's oil supply goes through the Strait of Hormuz every single day. While I feel pretty confident that our military could ultimately stop Iran from taking such an action, even a temporary disruption could have a devastating impact. I've seen the trouble created by a couple of hurricanes here in the south. If the Strait of Hormuz gets cut off for even a few days, I fear that it could take our whole country weeks or months to recover. And we've seen how volatile the price of oil is. Even if there wasn't a choking off of supply, the possibility of a disruption could send prices through the roof. With the world economy on shaky ground, that's the last thing we need right now.
So should we let Iran do whatever they want to do? I don't know. Surely, the prospect of them having nuclear weapons is frightening. However, the potential impacts of a war with Iran could be economically devastating as well. We need to remember that as we work to keep Iran from getting nukes. Of course, this just emphasizes the importance of getting off foreign oil. If we weren't so dependent on oil from the Middle East, we would be in a much better bargaining position than we are now. As it is, Iran currently has us over a barrel -- both literally and figuratively. As a result, we are largely powerless to have any influence over Iran's nuclear plans.
I don't really remember waiting in gas lines back in the oil and gas shock of the 1970's, so this was a new experience for me. Initially, it was amusing in a "this is just crazy" kind of way. After a few minutes, though, it became tiresome and quite disconcerting. Before these recent supply problems, my complaints were mostly about the rising price of gas. When you can't get it at all, though, the price of gas drops way down on the complaint list.
Thankfully, the supplies are starting to get back to normal. Most gas stations in my neighborhood have had at least some gas the last couple of days. Why did it happen, though? I heard that refineries had already cut back on production after the recent drop in demand. Then, Hurricanes Gustav and Ike resulted in a shutdown of several refineries. Those refineries have been gradually brought back online, but they have been slow in ramping up their production levels. With the supplies already being tight, the hurricanes' impact really put a choke-hold on the southeast.
This whole experience made me realize how devastating a war with Iran could be. Iran claims that it would do everything possible to cut off the Strait of Hormuz if we go to war with them. From what I've read, 40% of the world's oil supply goes through the Strait of Hormuz every single day. While I feel pretty confident that our military could ultimately stop Iran from taking such an action, even a temporary disruption could have a devastating impact. I've seen the trouble created by a couple of hurricanes here in the south. If the Strait of Hormuz gets cut off for even a few days, I fear that it could take our whole country weeks or months to recover. And we've seen how volatile the price of oil is. Even if there wasn't a choking off of supply, the possibility of a disruption could send prices through the roof. With the world economy on shaky ground, that's the last thing we need right now.
So should we let Iran do whatever they want to do? I don't know. Surely, the prospect of them having nuclear weapons is frightening. However, the potential impacts of a war with Iran could be economically devastating as well. We need to remember that as we work to keep Iran from getting nukes. Of course, this just emphasizes the importance of getting off foreign oil. If we weren't so dependent on oil from the Middle East, we would be in a much better bargaining position than we are now. As it is, Iran currently has us over a barrel -- both literally and figuratively. As a result, we are largely powerless to have any influence over Iran's nuclear plans.
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Comment by S.L.
The Political Brief
Comment by PopulistConservative
Angry Electorate
Comment by Lester Caudill
Round Politics
A you said a storm caused shortages, and just think what another war will do, well look how the price of oil would move up every time a rumor about Iran's nuke facilities was going to taken out, just a rumor can cause the price to jump.
We are in serious trouble and Congress could care less, they are like those three little monkeys hear no evil, see no evil, and speak no evil, all the while they know very well what's going on and they can't put aside their partisan feeling and do what they were elected to do.
Comment by PopulistConservative
Angry Electorate
Comment by Lester Caudill
Round Politics