If you are not talking about the politics of oil and the petrodollar, you are not talking about geopolitics. Petrodollar protection explains all of America's moves post Cold War. The US Ruling Class have to control the price of oil in order to sustain oil and gas production at home (i.e. maintain profitability) and to control world trade. The US Ruling Class have forced the World to pay for oil in dollars. This drives the demand for dollars. This inflates the value of the dollar. It creates an identity. The dollar is oil. If you don't have dollars, you cannot buy oil. The end of the petrodollar spells the demise of America's unipolar moment. The multipolar age is here.
GOLDILOCKS OIL
The US Ruling Class needs to keep the price of oil in a Goldilocks range. It cannot be too cheap nor can it be too expensive. If it is too cheap then US domestic producers cannot compete. They go out of business. If it is too expensive, then US consumers & businesses cannot afford it. This drives inflation & slows economic growth. If high prices last long enough it could even potentially lead to the development of serious fuel alternatives. This has happened to a degree with rise of electric cars.
Ask yourself this question - would American oil be profitable, if Iran, Iraq, Libya & Venezuela were not sidelined by sanctions and producing at full capacity? US shale oil production could not survive in a true free market world. That's why the US Ruling Class (who are heavily invested in petroleum) use their military to regulate the world oil market. Biden's cabinet choices shows this to be the case. Look at the choice of Blinken as Secretary of State read his book ALLY VERSUS ALLY. This proxy war is all about saving the US petroleum industry. They were going bankrupt prior to Covid which exacerbated the crisis. Then the whole industry collapsed when the Russians and Saudis dropped the price of oil. The Ukraine War has made shale oil and gas profitable once again. It has saved the bacon of America's Petroleum Oligarchs.
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| In the 1970's the US declared "We control the oil." |
