Thursday, October 16, 2008

Gov. Palin Protects U.S. From Foreign Gas Cartel

Russia and Iran seem to be in cahoots to start an OPEC-style gas cartel to control gas markets. Russia uses gas as a political weapon by stopping gas exports to neighbors during political disputes. But Governor Palin’s Trans-Canada Alaska gas line can protect the U.S. from those tactics because, when completed, it would provide vast supplies of natural gas to the U.S. so we won’t be dependent on countries that want to use gas as a weapon against us. Palin said:

That pipeline, when the last section is laid and its valves are opened, will lead America one step farther away from dependence on dangerous foreign powers that do not have our interests at heart.
With Russia wanting to control a vital pipeline in the Caucasus, and to divide and intimidate our European allies by using energy as a weapon, we cannot leave ourselves at the mercy of foreign suppliers. ge/?url= /articles/2008/09/sarah_palins_address_t o_the_rn.html

Normally, a pipeline cartel would not be powerful like OPEC because oil trades at one price all over the world and can ship almost anywhere, whereas most natural gas sales depend on pipelines and 20- or 30-year delivery contracts for pricing which would make it difficult for a gas cartel to manipulate prices to harm us. However, liquefied natural gas (LNG) can be transported by ship or truck and it’s becoming more popular. On October 14th Investors Business Daily reported:

This week in Tehran, Iranian President Mahmoud Ahmadinejad quietly drew up the [cartel] organization's charter and will take it to Moscow next week.

As the U.S. uses more natural gas, Iran's Gas Exporting Countries Forum is taking off. Instead of the tough task of controlling prices right away, the group will first gain control of reserves through state firms in 14 countries, including hostile states such as Venezuela and Bolivia.

The next step will be "cooperative" ventures to strengthen the network. The final goal is to control production.

We need to protect our country from hostile trade sanctions. Gov. Palin’s gas pipeline can help us do that. Gov. Palin saw into the future and understood that the U.S. must increase it’s energy independence to protect our national security. And also energy independence creates a Made-In-America product and jobs and revenue for our country.