Democrat energy policy puts us at mercy of those who don't like us

Ariel Cohen:

As you go deeper into debt filling up your tank with $4 gas this weekend, look on the bright side - you're helping to fund countries that hate you.

From Russia to Iran to Venezuela, America's adversaries are splurging on oil windfalls, while programs directed against Uncle Sam and his allies are funded by petroleum revenues. Big bucks are allowing the oil sultans and dictators to intimidate US allies, buy politicians and academics, and purchase election outcomes.

Oil prices are going up partly because of supply and speculation - but also because these countries can decide to punish the US or limit our influence, particularly when they disagree with policies toward Iraq and Israel.

Part of the reason they can do this is that governments of the Oil Producing and Exporting Countries (OPEC) cartel, and the non-cartel producers like Russia, make sure that international oil companies do not own reserves in the ground. Exxon, for instance, spent only 4 percent of its exploration budget in the Middle East last year - local governments do not allow Western companies to take control of their own destiny.

Thus, the global oil production is at the mercy of opaque and corrupt national oil companies, while the governments that own them enjoy skyrocketing oil prices and the growing, mindboggling wealth.

The revenues of the major oil producing countries have quadrupled in three years. Since 9/11, oil prices have more than quintupled. This year Europe and the US will spend approximately $2 trillion on imported oil, while the world will spend close to $3 trillion.

This money recycles back to the US and the West, often in the most legitimate ways. Sovereign Investment Funds have acquired large chunks of America's financial flagships: Citigroup, Merrill Lynch, Morgan Stanley, Blackstone and the Carlyle Group.

A foreign government acquiring a serious stake in US corporate gems can influence US policies in the Middle East and elsewhere. The oil sheikhs can "tweak" attitudes towards extremism and terrorism, and buy access to politicians through lobbying and campaign contributions. In the future, these funds may acquire defense and technology flagships: Boeing, General Electric, Lockheed Martin and others, or go after primary media assets, from CNN to FOX.

However, oil revenues may be used in much more sinister ways. Money can buy nuclear weapons programs, ballistic missile arsenals, and other arms. It can also pay for terrorist armies.

Today's attempt to overthrow the pro-American government in Lebanon is bankrolled by Iran. Hezbollah is a wholly-owned Iranian subsidiary. Its chief has the official title of the "representative of Iran's Supreme Leader" in Lebanon. Iran paid for the 27,000 rockets Hezbollah has aimed at Israel.

Iran also buys Hamas weapons and popularity in Gaza. In a recent children's TV broadcast by Hamas' Al Aqsa TV, a "Hamasnik" boy is shown assassinating President George W. Bush in the Oval Office and declaring that the White House will be turned into a mosque. Money may not buy you love, but it sure pays for propaganda.

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There is much more.

Democrats have been strangling domestic production in the US and its territorial waters for decades and the price we are having to pay for than policy is getting more expensive everyday. Democrats have a belief that if the price can be driven up enough we can conserve our way to independence. It is not working and want work. Because at the same time they are restricting supply they are complaining about the price. When it comes to energy policy the law of supply and demand is not one they are willing to obey.

And, as readers of this blog know, it is not just oil and gas that is being strangled by Democrats. Every other form of energy is one that many Democrats hate. Whether it is coal, nuclear, wind or solar, all forms of energy have their enemies in the Democrat party. Conservation is not a form of energy and is no substitute for any form of energy. Conservation is not a marketable product or service. Efficiency is, but efficiency still needs energy to be of value.