Black Gold
Black Gold
Washington, D.C. - It wasn't until the 1930's when major oil discoveries were made in the Persian Gulf States. The United Kingdom controlled most of the region politically for almost two hundred years. Only at the beginning of World War II did the U.S.S.R. and the United States begin to see the economic significance of the region.
Four years ago all of the world's oil producers collected about $300 billion annually. It was an enormous sum of money for regions that frankly had few resources until the last half century. Entire towns grew in the desert. Petrol dollars fueled construction, trade, and vast wealth for royal families.
Almost half of the world's known oil can be found in the Persian Gulf. This is an economically stunning amount of resources contained in a handful of small countries. Those energy resources will keep increasing in value.
Today the $300 billion annual figure has grown to over $800 billion. Oil producing states will collect over $800 billion for the oil they produce this year alone. Half of that sum will end up in the Persian Gulf. That figure may increase dramatically as the Asian demand for oil grows rapidly, further increasing the demand and thus the price for oil.
This growing Persian Gulf wealth is becoming a significant problem because it is beginning to filter down to individuals and groups that desperately want to harm America.
The first goal of any monarch is to wake up tomorrow and still be in power. The royal families of the Persian Gulf have made hundreds of billions in oil profits. The only thing keeping them in the way of making even more is political instability at home. Far too often these families are willing to buy off domestic political trouble. Extremist groups take royal money and use it to plot terrorism in the West. Peace at home for the royals comes with a hefty price tag for everywhere else.
The United States has launched a major financial operation at tracking down these funds and exposing the guilty parties. We have made great progress but money often finds a way around the barriers.
Our government must continue to do everything it can to stop the flow of terrorism funding. I am confident that the government will make a huge impact. However, more needs to be done.
There is another way to impact terrorism funding. We simply must reduce the amount of oil we purchase from the Persian Gulf. Our nation must become energy independent as soon as feasible.
For decades we have heard the virtues of mass transit and alternative sources of energy. Those virtues now include our national security. We have come a long way with hybrid technology already. Ethanol will be available at the pump this month in Cincinnati. Hydrogen fuel cells are working on test cars. However, we need to continue to invest in technologies and research. We also need to increase the minimum mileage requirements on our cars and trucks.
I recently purchased a new ethanol powered vehicle as my daily driver. I will be one of the first in line to buy ethanol this month. Not because ethanol is less costly or even because it is much better for the environment; I will be filling up with Ethanol because I no longer want to send my money to the Persian Gulf. I'll send my money to our farmers instead. Corn growers, as it turns out, are not so prone to extremism.
We have had decades of talk. It is now time to act in the best interests of our country.
http://www.house.gov/list/press/oh02_schmidt/gold.html