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View Full Version : Dropping oil prices and Iran’s Nuclear Pursuits


The antihero
09-09-2008, 12:01
This is an interesting perspective.

I think the timeline is somewhat too optimistic, maybe the whole thing is, yet such an approch might be well worth a try.

PS: sorry no original link for this one, I received it by e-mail.

Dropping oil prices and Iran’s Nuclear Pursuits
By: Michael D. Evans

Members of OPEC, which supplies more than 40 percent of the world’s crude oil, will meet on September 9th in Vienna, Austria. I believe that if OPEC refuses to decrease production, oil may continue to drop like the proverbial rock. It makes absolutely no sense for OPEC to cut its own economic throat unless the predominately Sunni-controlled cartel has decided to use oil as an economic stealth bomb to collapse the economy of Iran, a non-Arab, Shi’ite state hell-bent on going nuclear.

Quite simply: The oil-rich Persian Gulf Sunni states, i.e. Saudi Arabia, are concerned that Iran, under the leadership of Shi’ite fundamentalist President Mahmoud Ahmadinejad, will turn its sights on its Sunni neighbors once it possesses nuclear weapons. Ahmadinejad has been obsessed with a vision of a world Shi’ite caliphate in which he can become the Nebakanezer of the Gulf. A Persian nuclear umbrella would guarantee a Shi’ite fundamentalist explosion.

Atomic Iran would usher in a nuclear arms race in which the Sunni states would seek to arm themselves against Shi’ite aggression and could foment an apocalypse of global proportions.

The only thing that would prevent such nuclear proliferation in the Middle East would be a bankrupt Iran with no means to pursue its nuclear objectives. This would mirror the Reagan administration’s assault on the Soviet economy during his presidency. The Saudis were as concerned then about the Soviets as they are now about Iran. Reagan was able to induce them, and therefore OPEC, to cooperate with the U.S. in areas of oil production and price controls. In the end, the price of oil dropped, the Soviet economy collapsed, and the break-up of the U.S.S.R. began.

Would that same strategy work against Iran? It seems certain that bombing Iran would only unite and infuriate the Iranian people behind the present regime. It could create a global economic tsunami. Almost certainly, it would guarantee that John McCain’s bid for the presidency would fail. Although crude has dropped in value by more than 25 percent since peaking at $147 per barrel, Iran is now lobbying OPEC to cut production output by 1.5 million barrels per day.

The only thing that might work would be a concerted effort to drain Iran’s coffers of funds designated for nuclear pursuits. Iran simply cannot survive without significant oil profits. Such a move could force regime change. Ahmadinejad is up for reelection in 2009; an economic collapse could end his tenure, halt his nuclear ambitions and forestall a nuclear crisis in the Middle East.

Such a move would hit oil-rich Russia, Persia’s atomic subcontractor, hard in the pocketbook. That would be a delightful thought for John McCain, especially after the incursion in Georgia.

Please forward to all of your friends. If you would like to receive all of Dr. Evans’ intelligence alerts, please click here to sign up.

Your Ambassador to Jerusalem,
Dr. Mike Evans

GratefulCitizen
09-09-2008, 22:05
Looks like someone was expecting the 12th Imam to arrive earlier. :munchin

http://www.marketwatch.com/news/story/economic-bill-comes-due-irans/story.aspx?guid=%7BD6E215A0-B281-4CFB-A1CA-BF4004AE360E%7D&dist=msr_1

The antihero
09-10-2008, 06:40
Interesting thanks.

GratefulCitizen
09-10-2008, 23:14
Looks like the Saudis have made there position clear:

http://www.iht.com/articles/2008/09/10/business/oil.php

glebo
09-11-2008, 07:15
Ineresting spin...could happen

The antihero
09-11-2008, 08:32
Well, sounds good. Let's hope the Saudis keep on course.

nmap
09-11-2008, 11:01
It is an interesting possibility.

However, there might be other reasons for production cuts: (This from page 51 of Twilight in the Desert, by Simmons)

The Hersh disclosures revealed for the first time that serious questions had been raised in the early years of the 1970s about the potentially harmful effects of high production rates at Ghawar, Abqaiq. and Safaniyah. The critical issue the hearing described involves an oil reservoir's sensitivity to the rate at which it is produced. Fields with high reservoir pressures that enable high wellhead flows are likely to be particularly sensitive to the rate of production and vulnerable to damage from too high a rate, or over-production. As high reservoir pressure dissipates, water begins to commingle with the oil. gas bubbles to the top of the reservoir where it forms a gas cap. and soon the oil remaining underground becomes inert and ceases to flow. It can then be pumped out. but the pumping process also brings out far more water and gas that crowd out the oil. The faster a high-pressured oil*field is produced, the faster the advantages of this high-pressure production are lost.This phenomenon is commonly called "rate sensitivity ot oilfields."

I wonder if rate sensitivity might be a part of the reason for the cutbacks.