I'm driving a big old gas guzzling V8 these days. To be sure, it's not my first choice of vehicle, given that it hurts my wallet to even look at the thing. Sure, I appreciate the higher view of the road, the four-wheel drive, and the powerful sound of the engine. But every time I go to fill up at the pump, I dread the disparity between what I paid and how many litres I actually got. That is until recently, when OPEC decided to help me out at the pumps.
You see, the Organization of Petroleum Exporting Countries is essentially the almighty being that decides what you pay at the pump. They control the production of crude oil, and can easily set the price by producing more or less of the stuff as they see fit. What many of us do not realize however, is that oil production isn't just about money - its about politics.
Being in control of the world's third most precious resource, after oxygen and water, means that OPEC has the ability to bully other nations into compliance by cutting off their citizens and military's access to the liquid that propels their jets, cars, and tanks via embargo. Also, the wealth of many nations is tied directly to the price of oil, and so as oil drops in price, the profits made from gasoline, diesel, and aircraft fuel drop as well.
All this might sound pretty obvious, but it has serious implications that ought to matter to us as "citizens of the global village," more than simply being thankful for the break at the pumps.
It is a fairly certain guess that the Saudis, that is the Kingdom of Saudi Arabia, are waging a price war with both American shale oil and the Russian mob, not to mention a few others. American shale oil costs a great deal more to produce than crude from the Arabian Peninsula, which can be gathered in some places by simply sticking a rod in the ground and pulling it out again; while it's not very nice to hurt an ally's economy, the Saudi's are actually giving global crisis a release valve by harming Russian wealth as well. Thanks to both higher production costs and the utter buffoonery that is the Russian "free market", with its payoffs and mobster mentality, Russia's fairly accessible oil reserves cost a great deal to refine, making low oil prices very harmful to the rich in that nuclear winterland. Less money for Mother Russia might eventually weaken its grip on Ukraine, which would certainly be a relief to all sensible people.
That was a lot to get through in a short space, but I feel its important to highlight just one more thing, something most anti-oil protesters won't even bother to acknowledge: just as there is no free lunch, your break at the pumps comes at a cost to the democratic West.
Whatever you think of the oil sands and other fossil fuel extractions, in the Western world resource workers have rights and they enjoy fair wages. There are workers compensation schemes, pensions, and well built accommodations included in much of the oil industry throughout North America, and despite a great deal of rhetoric to the contrary, the oil production in the Western world has gotten safer over time, both for workers and the environment.
I say all this because as the price of oil drops, Canada's economy can be affected in a negative way, all while a few super rich people in the Arab Peninsula continue to rake in mountains of cash on the backs of unprotected labour. The fact of the matter is the list of OPEC countries doesn't really correlate to a great human rights track record, a point that ought to be the real focus of the anti-oil movement instead of our own strictly monitored, safety-first system.
In the North we all need fuel, and I'm not suggesting you drive directly to Alberta to ensure you're paying Canadians instead of the King of Saudi Arabia. But maybe if we bring Canadian oil to us, via pipeline for example, we can have a clear conscience at the pumps.
