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Published:February 19th, 2012 12:31 EST
United States Should Develop a Comprehensive Strategy for Energy...

United States Should Develop a Comprehensive Strategy for Energy...

By Harvey Carroll, Jr.

 

According to an article written by Captain Melissa Bert, USCG, Military Fellow, U.S. Coast Guard. The United States should develop a Comprehensive Strategy for the Arctic as the melting polar region offers vast Oil drilling of an estimated 30 billion barrels of Oil and 220 trillion cubic feet of natural gas, and trillions in new revenues.

 

There are issues to be via the United Nations Law of the Sea Convection (LOSC) as to whom, and where the boundaries are as Russia, Canada, Norway and Denmark have boundary claims. "Now is the time to start looking at how to negotiate the best deal structure,  joint ventures and the like. However, it comes down to who can get up of their arses, and off their shores and tap into those resources. Yet, it will not be easy as the region is still very difficult to maneuver following icebreakers and the like even in the summer months." Only a few brave the cold ice waters like the American, Russian and German ships and tankers run the routes that cut off nearly 8,000 miles, and a couple weeks off a ships voyage." According to the Article 150,000 tons of Oil, 400,000 tons of gas condensate and 600,000 tons of Iron Ore the U.S., Russia and Germany.

 

Obviously, the United States Government and our Defense Policy has squandered trillions all over the World and have little to show for it other than trillions added to the taxpayers in the form of long term debt obligations." Therefore, trying to develop a "Strategic Strategy" with an American Commons Defense that has no Commonsense will be difficult to do, if at all.

 

The area is millions of square miles. The estimated U.S. portion alone is 3.3 million square miles. "If you out there and you have Titanical problems, then you are shall we say more than up a creek without a paddle, with no one, nor rescue group or helicopters to get a paddle to you, or would they be in a position to risk getting to you. The area is a near suicide voyage that would require a convoy of support on each and every trip, or risk not being able to get from point A to point B.

 

The Author suggest a ten-year plan, that requires two heavy icebreakers at about 1 billion each, and air station in Port Barrow, Alaska; with at least three helicopters for an estimate of about 20 million dollars. A deepwater port with response capabilities. A base at Dutch Harbor in the Aleutian Islands that is now used for ships and fishing vessels resupply and refueling that could be done for a few million. "The Author believes that the 2.6 billion collected from offshore lease sales in the Beaufort and Chukchi Seas off the Alaskan coast would pay for the operation."

 

I feel that those funds are probably already slated; however, the Captain did present a target of funds. "Overall, I liked the analysis, but the plan should be much bigger and bolder as should other strategic energy policies of the United States."

 

I see that America`s Common Defense has lost its Commonsense, and is very poor at cash flow analysis and just basic "Revenues minus Expense equals Money before taxes" or what I call REM Defense had risen to 2.2 billion dollars per day and the new Obama/Panetta Defense budget drops Defense down to 524 billion a year or 1.44 Billion per day. Nearly ½ Trillion of that is spent in the Middle East; thereby, spending 12 to 18 times more than we import in Oil. "Sure Oil can be purchased in the Middle East for about $100 per barrel; however, when you add in the huge cost of defense on top of that then it is obviously not good business, nor does it show responsible stewardship of the American taxpayer dollars."

 

"Such idiocracy has went on in U.S. Foreign Policy and Defense Policy for far too long. I am glad to see President Obama start to cut this silliness out and focus on reinvesting those funds back into Americas economic security that is also vital to national security."

 

With that said, "I would not suggest rush into this deal; however, I would expand upon it and make it much bolder, and much braver. America needs to invest in hundreds of such tankers and cargo ships, as well as alternate energy programs." The United States should participate in Joint Ventures, Public-Private-Partnership lease/sale agreements with a variety of groups that can build the required ships and deliver the products. To include building a fleet of export ships that can take goods to the World. "We have to ramp up more strategic trade and commerce ventures in the future as well as energy."

 

Exports should also be America`s strategic focus. Currently the United States has a near 1 Trillion Dollar a year trade Deficit when you add in Oil Imports which is equal to about (2.74 BILLION DOLLARS PER DAY). This Trillion Dollar a year trade imbalance is America`s most serious problem, that gravely threatens America`s economic, and national security more than any other issue. "Yet, President Obama has his hands tied by the Republicans in Congress that helped create the problem." The President could offered to double, or triple, or even quadruple the cost of imports via Tariff`s to protect American jobs. This would bring new sources of revenues that would compete with State Run Capitalism of China; however, China would still be the lowest producer of goods with a per capita income of about $4,000 dollars per year (many live on less than $1 a day in rural China); while American`s yearly per capita income is about $50,000 dollars (More than 10 times that of the Chinese worker)."

 

In conclusion, "I support this long term strategic focus for the Arctic; however, we have to look at other areas in the World as well to include off our own shores." We have spent great time and attention in the Middle East, Africa and the like and there are vast resources that can be developed with existing Defense and Energy Funds. We should purchase CITGO from the Venezuelan people and tear down the slums where people live in squalor and rebuild citizens of Venezuela decent and respectable housing as a prerequisite for purchasing CITGO since we arethinking outside the box loan me the money I will buy it. We should develop more around our shores and ask Turkey why they inked a deal with Russia to run a pipeline from the Middle East to Europe and not with the United States and other NATO Nations since we have invested so much blood and treasure in the area."

   

Contact Informatino: harvey.carroll.jr@gmail.com

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