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Miigwech

(3,741 posts)
Thu Mar 12, 2015, 09:13 PM Mar 2015

Why another war for Oil?

I suggest the one big reason for the drop in oil prices has a lot to do with the end of our recent wars. Since the US military is the worlds biggest consumer of fuel and since the US engagement in the Wars in Iraq and Afganistan are over (kinda, sorta), the world is all a gush with oil. Too much supply for the world now that the biggest customer is out of the market and so the prices are low and maybe going lower? Big oil can't stand this so they must somehow get the US military machine up into another war to suck up excess supplies. I have posted a 2008 article during the height of the Iraq war and something of interest from the Union of Concerned Scientists.

http://www.forbes.com/2008/06/05/mileage-military-vehicles-tech-logistics08-cz_ph_0605fuel.html


6/05/2008 @ 6:00PM
The World's Biggest Fuel Consumer

The U.S. Department of Defense is the single-largest consumer of fuel in the world. Despite rising fuel costs and a limited supply of oil, the military’s fuel consumption has been growing in recent years. In World War II, the armed forces used about one gallon of fuel per soldier every day. In Desert Storm, fuel usage was about four gallons. By 2007, with operations in Iraq and Afghanistan, usage was up to 16 gallons, or $3 million worth of fuel a day.

So where does it all go? To the Air Force, mostly. Jet fuel accounts for 71% of the entire military’s petroleum consumption, in part because flyboys move around the majority of men and a lot of heavy equipment. When it’s time for an Army battalion to deploy, they hitch a ride on a cargo plane through the U.S. Transportation Command (TransCom).

“TransCom is like a very large airline,” says Army Col. Vern Beatty. “When the time is right, a C-17 will land and pick you up and take you where you need to go.”
In Pictures: Fuel-Sucking Military Vehicles
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U.S. Military and Oil Use
Union of Concerned Scientists

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Why another war for Oil? (Original Post) Miigwech Mar 2015 OP
Oil prices have much more to do with the way that we've changed production metalbot Mar 2015 #1

metalbot

(1,058 posts)
1. Oil prices have much more to do with the way that we've changed production
Thu Mar 12, 2015, 09:23 PM
Mar 2015

While the US Military may be the single largest consumer of fuel, the drop is US military consumption won't drive anything near the changes in supply and demand that we've seen.

The biggest factor that is going to keep oil prices low is that there's a very, very low startup cost for new oil extraction technologies (mostly hydraulic fracturing). You can start drilling gas for a few million dollars using fracturing technologies that would otherwise have heavy startup costs. Interestingly enough, you can also shut down a fracturing operation for much cheaper than traditional drilling technologies, which means that fracturing operations can react much more quickly to price changes. That reaction time will keep prices low for an extended period of time. It's going to be a rough couple of years for the Saudis and the Russians.

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