News Release Archive | Michael T. Klare | Accuracy.Org

Welcome to the Energy Third-World: the United States

MICHAEL T. KLARE, via Leslie Brandon, leslie.brandon at hholt.com
Klare is a professor of peace and world security studies at Hampshire College and the author of the new book The Race for What’s Left: The Global Scramble for the World’s Last Resources. He just wrote the piece “A New Energy Third World in North America? How the Big Energy Companies Plan to Turn the United States into a Third-World Petro-State,” which states: “The ‘curse’ of oil wealth is a well-known phenomenon in Third World petro-states where millions of lives are wasted in poverty and the environment is ravaged, while tiny elites rake in the energy dollars and corruption rules the land. Recently, North America has been repeatedly hailed as the planet’s twenty-first-century ‘new Saudi Arabia’ for ‘tough energy’ — deep-sea oil, Canadian tar sands, and fracked oil and natural gas. But here’s a question no one considers: Will the oil curse become as familiar on this continent in the wake of a new American energy rush as it is in Africa and elsewhere? Will North America, that is, become not just the next boom continent for energy bonanzas, but a new energy Third World?

“Eager to escape ever-stronger environmental restrictions and dying oil fields at home, the energy giants were naturally drawn to the economically and environmentally wide-open producing areas of the Middle East, Africa, and Latin America — the Third World — where oil deposits were plentiful, governments compliant, and environmental regulations few or nonexistent.

“Here, then, is the energy surprise of the twenty-first century: with operating conditions growing increasingly difficult in the global South, the major firms are now flocking back to North America. To exploit previously neglected reserves on this continent, however, Big Oil will have to overcome a host of regulatory and environmental obstacles. It will, in other words, have to use its version of deep-pocket persuasion to convert the United States into the functional equivalent of a Third World petro-state.

“The formula for making Canada and the U.S. the ‘Saudi Arabia’ of the twenty-first century is grim but relatively simple: environmental protections will have to be eviscerated and those who stand in the way of intensified drilling, from landowners to local environmental protection groups, bulldozed out of the way. Put another way, North America will have to be Third-Worldified.

“How we characterize our energy predicament in the coming decades and what path we ultimately select will in large measure determine the fate of this nation.”

High Gas Prices Are Here to Stay, Here’s Why

MICHAEL T. KLARE, via Leslie Brandon, leslie.brandon at hholt.com
Klare is a professor of peace and world security studies at Hampshire College and the author of the new book “The Race for What’s Left: The Global Scramble for the World’s Last Resources.” He just wrote the piece “A Tough-Oil World: Why Twenty-First Century Oil Will Break the Bank — and the Planet,” which states: “Oil prices are now higher than they have ever been — except for a few frenzied moments before the global economic meltdown of 2008. Many immediate factors are contributing to this surge, including Iran’s threats to block oil shipping in the Persian Gulf, fears of a new Middle Eastern war, and turmoil in energy-rich Nigeria. Some of these pressures could ease in the months ahead, providing temporary relief at the gas pump. But the principal cause of higher prices — a fundamental shift in the structure of the oil industry — cannot be reversed, and so oil prices are destined to remain high for a long time to come.

“In energy terms, we are now entering a world whose grim nature has yet to be fully grasped. This pivotal shift has been brought about by the disappearance of relatively accessible and inexpensive petroleum — “easy oil,” in the parlance of industry analysts; in other words, the kind of oil that powered a staggering expansion of global wealth over the past 65 years and the creation of endless car-oriented suburban communities. This oil is now nearly gone.

“The world still harbors large reserves of petroleum, but these are of the hard-to-reach, hard-to-refine, ‘tough oil’ variety. From now on, every barrel we consume will be more costly to extract, more costly to refine — and so more expensive at the gas pump. …

“As with the Deepwater Horizon disaster, oil extraction in deep-offshore areas and other extreme geographical locations will ensure ever greater environmental risks. After all, approximately five million gallons of oil were discharged into the Gulf of Mexico, thanks to BP’s negligence, causing extensive damage to marine animals and coastal habitats.

“Keep in mind that, as catastrophic as it was, it occurred in the Gulf of Mexico, where vast cleanup forces could be mobilized and the ecosystem’s natural recovery capacity was relatively robust. The Arctic and Greenland represent a different story altogether, given their distance from established recovery capabilities and the extreme vulnerability of their ecosystems. Efforts to restore such areas in the wake of massive oil spills would cost many times the $30-$40 billion BP is expected to pay for the Deepwater Horizon damage and be far less effective. …

“And don’t forget the final cost: If all these barrels of oil and oil-like substances are truly produced from the least inviting of places on this planet, then for decades to come we will continue to massively burn fossil fuels, creating ever more greenhouse gases as if there were no tomorrow. And here’s the sad truth: if we proceed down the tough-oil path instead of investing as massively in alternative energies, we may foreclose any hope of averting the most catastrophic consequences of a hotter and more turbulent planet.

“So yes, there is oil out there. But no, it won’t get cheaper, no matter how much there is. And yes, the oil companies can get it, but looked at realistically, who would want it?”