There are moments in history that will resonate with us forever: November 9, 1989; December 25, 1991; September 11, 2001; November 4, 2008, etc. Those are easy to see, and note.
However, there are other moments in history that are tougher perceive when they happen. Only with hindsight do we even know they existed, let alone their impact. Many will consider December 2007 such a moment (the beginning of the Great Recession). I, however, have at least one other – possibly two – that could be far more important: the moment(s) when America’s oil import market shifted.
Throughout any and all discussion of the Wahhabist-Ba’athist-Khomeinist War, one economic angle has managed to pierce through the military issues: the predominance of oil imports from the Middle East, in particular Saudi Arabia and other Persian Gulf nations. As the global-warming alarmism begins to fade into history, those who did the most to promulgate it are shifting gears and trotting out the Middle Eastern oil angle, led by none other than Mr. Man-Bear-Pig himself, Al Gore (New York Times – get your own link – via Ann Althouse):
Of course, we would still need to deal with the national security risks of our growing dependence on a global oil market dominated by dwindling reserves in the most unstable region of the world, and the economic risks of sending hundreds of billions of dollars a year overseas in return for that oil.
This, in a nutshell, is the harbor for global warming alarmism. It is easily the anti-crude argument with the most punch and broadest reach across the political spectrum.
There’s only one problem: it’s all wrong.
Odds are Gore doesn’t realize this, few people actually do. However, the Energy Information Administration (stat-keeper for the Department of Energy) has been tracking delineated oil imports since the early 1990s. Here’s the stunning fact: since 2004, the largest exporter of oil to the United States is not Saudi Arabia; it’s Canada.
The Saudis aren’t even the second largest exporter of oil to America anymore; Mexico passed them in 2009. Moreover (and here’s the second moment): in 2009, for the first time ever, Canada exported more oil to the U.S. than all Persian Gulf nations put together.
How dramatic is this? Well, for one, it makes Gore’s seemingly slam-dunk comment about hundreds (plural) of billions of dollars going “overseas” to be completely wrong. When one takes North America out of the picture, only once has America paid over $200 billion for oil: last year, during the speculative boom when the price topped $140 a barrel. It has since fallen below that figure, meaning we don’t pay “hundreds of billions of dollars a year overseas.”
More importantly, though, it means something that hasn’t even been contemplated, let alone processed into policy: America is far less dependent upon Gulf oil in general – and Saudi oil in particular – than we were in the past, and less dependent than we believe we are at present.
Think about it this way: in 1990, when Saddam Hussein invaded Kuwait and the oil markets were roiled, the Saudis stepped into the breach to minimize the disruption (that it meant they would gain a nice chunk of market share didn’t hurt, of course). Canada can now play the same role if the entire Gulf is disrupted (say, in response to a military action against the Iranian mullahcracy’s nuclear weapons operation).
It may take such a dramatic moment for Americans (to say nothing of Canadians) to figure out what’s happening. In any event, the trend points to this: America’s appetite for oil is enriching Gulf emirates less, in favor of the democratic neighbor to the north who just happens to be our largest trading partner (and thus, much of the money we’re sending north for oil will come back south for our goods and services – including health care).
In the 1970s the ground shifted as America became a net oil importer, but the full impact of this wasn’t understood until the Arab oil boycott of 1973. Today, the ground has shifted once again; this time, however, the realization will be far better for Americans – and far more shocking for the Gulf.
Cross-posted to VV