Iran to block the Strait of Hormuz in one month

Wake up. The LDAMM don’t want you to be aware. This is why. Important news takes a back seat to ATIP: Anti-Trump Identity Politics.

Focusing back, nothing moves particularly rapidly in the Muslim world, hence the headline.

What does inshallah mean? “If Allah wills.”

A convenient excuse for being late or early or whatever. That’s how the ME version of Islam works. It doesn’t operate on Western time frames. Period. That said, from Reuters.com:

U.S.-Iran tensions rise over oil route as EU tries to save nuclear deal

by Bozorgmehr Sharafedin

LONDON (Reuters) – The U.S. Navy stands ready to ensure free navigation and the flow of commerce, the U.S. military’s Central Command said on Thursday, as Iran’s Revolutionary Guards warned they would block oil shipments through the Strait of Hormuz if necessary.

A blockade? It would seem potentially so. Continuing with Reuters.com:

With tensions rising over the strategic waterway, the European Union is proposing a plan for salvaging a multinational nuclear deal with Tehran after Washington withdrew, but Iranian President Hassan Rouhani told leaders in Paris and Berlin on Thursday that the package did not go far enough.

Rouhani and some senior military commanders have threatened in recent days to disrupt oil shipments from the Gulf countries if Washington tries to strangle Tehran’s exports.

Praising Rouhani’s “firm stance” against the United States, the head of the Revolutionary Guards said their forces were ready to block the Strait of Hormuz which links the Gulf to the open sea.

Again, it’s Trump vs Obama and Obama’s cementing of deals deleterious to the United States of America because, after all, Obama believed then and believes now that this country must “atone” for its prior myriad of faults.

In May, U.S. President Donald Trump pulled out of the deal under which sanctions on Iran were lifted in return for curbs to its nuclear program. Washington has since told countries they must stop buying Iranian oil from Nov. 4 or face financial measures.

Mohammad Ali Jafari, who commands the Islamic Revolutionary Guard Corps, Iran’s most powerful military force, responded on Thursday.

If Iran cannot sell its oil due to U.S. pressure, then no other regional country will be allowed to do so either, Jafari was quoted as saying by Tasnim news agency. “We are hopeful that this plan expressed by our president will be implemented if needed,” he said. “We will make the enemy understand that either all can use the Strait of Hormuz or no one.”

Translated: no other Middle Eastern country. Hence, the blockade. The Strait of Hormuz is one of the world’s most strategically important choke points on the planet. This little salient bit:

The strait is the most important oil transit channel in the world with about one fifth of global oil consumption passing through each day.

The US would simply find that unacceptable for us and, of course, everyone else dependent upon Middle Eastern oil shipments.

Here was the issue six years ago.

It’s an issue of oil, and it’s an issue involving the freedom of waterways.

I hope Iran doesn’t believe our president isn’t resolute.

BZ

 

Ben Carson: wrong on ethanol

Dr Ben CarsonI know that Dr Ben Carson is a highly educated and good man, and I suspect that he is likewise a very compassionate and considerate man.

However, he has now provided sufficient information for me to conclude that I’ll never vote for him.

First, from HotAir.com:

Ben Carson: Let’s slash Big Oil to pay for ethanol

by Jazz Shaw

Newly announced presidential contender Ben Carson was out talking to the Cornhuskers and the inevitable subjects of ethanol, the Renewable Fuel Standard (RFS) and subsidies for King Corn came up. 

Uh-oh, do I hear some potential pandering in the wings, pray tell?

Whilst there in Iowa, Dr Carson said, however:

“I don’t particularly like the idea of government subsidies for anything because it interferes with the natural free market.”

Nicely played sir.  Agreed.  Go on.

“Therefore, I would probably be in favor of taking that $4 billion a year we spend on oil subsidies and using that in new fueling stations” for 30% ethanol blends, Dr Carson said.

Oh boy.

This is where Dr Carson and I part ways, and part ways Big Time.

Dr Carson wants E30 in our vehicles.  Are you kidding me?  E30?  That will be one of the largest destroyers of current ICE engines imaginable, other than kicking one out the back of a C-130 at 38,000 feet.

He’s suggesting cutting subsidies for domestic energy companies in the oil and gas industry. Not for everyone, mind you. Just them. And then reallocating that money away from fossil fuels and into ethanol processing. Just five seconds before that Carson had been claiming that he didn’t want anyone interfering with the free market, but now he’s saying to cherry pick one specific set of companies in the energy sector, remove a subsidy from them, and then redirect it to benefit the ethanol industry? It’s difficult to imagine a more egregious example of the government picking winners and losers, with the winners just happening to be in the first caucus state.

Hot Air disapproves in a political fashion:

If you want to have a discussion about removing all subsidies across the board, then fine. We’re all ears. Carly Fiorina has proposed the same thing and it’s a worthy topic of debate. But when you start talking about just picking the pockets of oil and gas developers and using it to pay for ethanol, you may as well be running for the Democrat nomination. Poor showing, Dr. Carson.

But has anyone considered the physical-energy aspects of the plan?

Hold that thought.

I’d never much wanted to write this, but Dr Ben Carson lacks a major component that most political figures must possess: presence.  It is a tool that Dr Ben Carson completely lacks.  That said:

Second, calling out the “subsidies for Big Oil” is the language of the Left, and as usual it’s complete horse hockey. As anyone who follows this topic knows, the subsidies received by oil and gas companies are not specific to them. They are precisely the same as subsidies given to almost anyone who sells anything, including Apple and Microsoft among so many others. In fact, you couldn’t just cancel the subsidies to the fossil fuel segment of the energy industry without rewriting the rules entirely just to exclude them. That’s a left wing, anti-energy talking point and Carson should be embarrassed to be saying it in front of an ostensibly conservative crowd.

True.  But moreover, what do we know about ethanol?

First, that the greater the gradient (E-15 to E-30), the greater amount of water is contained.  Internal combustion engines don’t like water, they aren’t built to have any water in the fuel system.  High compression motorcycle engines eschew ethanol completely.

Corn crops marked for ethanol might even be illegal.

Further, globally, America earmarking corn for fuel reduces the amount of corn available for the rest of the world in terms of edible food.

As in: corn for food vs corn for fuel.  As in: who starves and who profits from corn?

It is clear that Dr Carson wishes American corn to be utilized as a domestic fuel source, as opposed to a global food source.

But realize: even way back in 2005, ten years ago, Ethanol was recognized as inefficient.

Even Forbes.com, a site most certainly supportive of business, suggests that ethanol is moribund at best.

It’s Final — Corn Ethanol Is Of No Use

OK, can we please stop pretending biofuel made from corn is helping the planet and the environment? The United Nations Intergovernmental Panel on Climate Change released two of its Working Group reports at the end of last month (WGI and WGIII), and their short discussion of biofuels has ignited a fierce debate as to whether they’re of any environmental benefit at all.

The IPCC was quite diplomatic in its discussion, saying “Biofuels have direct, fuel‐cycle GHG emissions that are typically 30–90% lower than those for gasoline or diesel fuels. However, since for some biofuels indirect emissions—including from land use change—can lead to greater total emissions than when using petroleum products, policy support needs to be considered on a case by case basis” (IPCC 2014 Chapter 8).

And here we go with the poor:

With more than 60 nations having biofuel mandates, the competition between ethanol and food has become a moral issue. Groups like Oxfam and the Environmental Working Group oppose biofuels because they push up food prices and disproportionately affect the poor.

Yet:

So why have we pushed corn ethanol so heavily here in the U.S.? Primarily because it was the only crop that had the existing infrastructure to easily modify for this purpose, especially when initially incentivized with tax credits, subsidies and import tariffs. Production, transportation and fermentation could be adapted quickly by the corn industry, unlike any other crop.

Let’s summarize: ethanol is inefficient.  You get more “bang from your buck” from petroleum products.

MPG plummets with ethanol.

Horsepower plummets with ethanol.

And ethanol destroys engines.

Concurrent with: ethanol is energy-inefficient and — simultaneously — drives food prices higher.

Way to go, Dr Carson.

I suggest: you might want to think this over for a week or two.

BZ

 

Sierra Club Says Saudis Their ‘Best Ally’ in Fighting Keystone

House of Saud

[The new Best Friends of the Sierra Club. Eco-Fascists, anyone?]

Sounds kind of strange to you?

It sounded kind of strange to me.

Although, it would be a “given” that the Sierra Club would oppose Keystone XL pipeline, which would help to make the US even more independent from Blood Oil and Conflict Oil directly from the Middle East and other trouble nations.

From the WashingtonFreeBeacon.com:

Sierra Club: Saudi Arabia ‘Our Best Ally’ in Keystone Fight

by Lachlan Markay

Leading environmentalist group heaps praise on Arab monarchy’s attempt to undermine U.S. oil production.

Saudi Arabia’s efforts to “drown” American energy producers make the oil-rich theocracy a crucial ally of the environmentalist movement, according to a leading green group.

The House of Saud, the kingdom’s royal family, is “our best ally in the fight against Keystone XL,” according to Paul Rauber, the senior editor of Sierra, the bi-monthly magazine published by the Sierra Club, a leading environmentalist group.

President Barack Obama has threatened to veto legislation expediting approval of the pipeline. However, Rauber said that the government of Saudi Arabia has done more to scuttle Keystone.

“Environmentalists are depending on President Barack Obama’s veto pen to block the project—at least until the State Department issues its final ruling in the matter,” Rauber wrote. “But we have another, even more potent ally in the fight: the House of Saud.”

As a leading member of the Organization of Petroleum Exporting Countries (OPEC), Saudi Arabia has strongly opposed cuts in production that would buoy the plummeting price of crude oil.

The idea is to make oil so cheap that American producers can’t extract it economically. The current surge in U.S. oil production is a result of expensive extraction techniques—hydraulic fracturing and horizontal drilling—that could be cost-prohibitive if oil prices fall much further.

According to Rauber, OPEC’s efforts may also render the Keystone pipeline moot by forcing prices too low for the expensive refining process of heavy Canadian “oil sands” crude.

We already know that Russia, Iran and Venezuela are claiming that the drop in global oil prices are the result of a vast American conspiracy.  Russia, Iran and Venezuela depend mightily on the profits from oil sales and need it to keep their countries functioning and keep their current leaders in power.  Gwynne Dyer in Hurriet of Turkey calls this strategy “fiendishly clever” on the part of the US.

There’s one problem.  Russia, Iran and Venezuela aren’t glimpsing the big picture.  And Saudi Arabia is big enough, wealthy enough and canny enough to play the Long Game.

The Long Game is this: Saudi Arabia hasn’t slowed oil production on its end for a very important reason.  The US is now the world’s leading producer of oil and could become even bigger.  Fracking was the difference.  But to make fracking possible, oil has to come in at roughly $85 a barrel in order to make the investment worthy.  Fracking is complicated and expensive.

All Saudi Arabia has to do, to keep a chokehold on fracking, is not turn the faucet off or down.  Keep up production.  Oil falls below $85 and fracking becomes unprofitable for companies in the US.  Workers have already been laid off and some wells shut down.

The winner?  Saudi Arabia.  They can afford to sit while a few billion dollars percolate.

And?  Oh yeah.  That cheap oil?

Gonna go up again.  Mark my words.

In the meantime: a tip of the fedora to the good, old Sierra Club.

Fucktards.

BZ