The Empire Needs New Clothes

by Thom Hartmann

At the core of this is oil. When the administration's people say American involvement in Iraq is "not about oil," they're often responding to charges that they're only going after profits for American oil companies. They speak truth, in that context, when they say the war isn't about revenues from oil - the profits will only be a desirable side-effect. What the war is really about is the survival of the American lifestyle, which, in their world-view, is both non-negotiable and based almost entirely on access to cheap oil.

The same year Cheney, et al, wrote their papers on The New American Century, I wrote a book about the coming end of American peace and prosperity because of our dependence on a dwindling supply of oil. "Since the discovery of oil in Titusville, PA, where the world's first oil well was drilled in 1859," I wrote in The Last Hours of Ancient Sunlight, "humans have extracted 742 billion barrels of oil from the Earth. Currently, world oil reserves are estimated at about 1,000 billion barrels, which will last (according to the most optimistic estimates of the oil industry) 'for almost 45 years at current rates of consumption.'"

But that doesn't mean that we'll suck on the straw for 45 years and then it'll suddenly stop. When about half the oil has been removed from an underground oil field, it starts to get much harder (and thus more expensive) to extract the remaining half. The last third to quarter can be excruciatingly expensive to extract - so much so that wells these days that have hit that point are usually just capped because it costs more to extract the oil than it can be sold for, or it's more profitable to ship oil in from the Middle East, even after accounting for the cost of shipping.

The halfway point of an oil field is referred to as "The Hubbert Peak," after scientist M. King Hubbert, who first pointed this out in 1956 and projected 1970 as the year for the Hubbert Peak of US oil supplies. Hubbert was off by four years - 1974 saw the initial decline in US oil production and the consequent rise in price. In 1975, Hubbert, who is now deceased, projected 2000 for a worldwide Hubbert Peak. Once that point had been hit, he and other experts suggested, the world could expect economy-destabilizing spikes in the price of oil, and wars to begin over control of this vital resource.