Russia And Iran Form Gas Cartel; Evil Axis Controls US Fuel

Monday, October 27, 2008 21:55

OK, first the really good news.  CNN reported yesterday that gas prices dropped so much over the past 2 weeks (.53 cents) that they’ve set another record.  And gas prices will continue to drop, albeit at a slightly slower pace.  That’s good news whether you’re getting 10 miles to the gallon with a v8 SUV or if you’re getting better gas mileage with a zippy new hybrid.

Now the bad news.  Remember the Axis of Evil?  Iran was one of them.  Still are.  Remember the Cold War, when Americans feared Russia and nuclear nightmare more than any terrorist group?  Well India Times reported today that Russia and Iran, along with Qatar, have decided to form an exclusive Gas Cartel, along the same lines as the OPEC group.  Russia, Iran and Qatar currently account for over 60% of global natural gas reserves, so they have a lot of gas.  So why are they doing this?

They want gas prices upPeriod.  The summer months found that many U.S. travellers simply stayed home, and the demand for gas decreased.  As a result, we’re seeing gas prices drop in record declines.  So guess who doesn’t like that?  The new “Big Gas Troika” as they’re being called.  They want prices back up over $3/gallon. Preferably $4.

This impacts Americans in several ways.  First of all, we’ve been on shaky ground lately with Russia anyway.  (Can you say ungrateful?)  Secondly, since President Bush has targetted Iran as one of our biggest enemies in the Axis of Evil, we’re also on extremely wary diplomatic grounds with them.

And what would happen if America felt it needed to invade Iran and Russia was one of it’s biggest commercial allies?  Let’s just say the best thing that could come of that scenario is gas prices at $5+ per gallon.

Currently there a lot of obstacles in their way; even if they form a Gas Cartel they can’t regulate gas prices on their own.  And Moscow is still saying it’s only a “talking club” and its membership is not binding on its members.  We’ll just have to wait and see how this develops.

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One Response to “Russia And Iran Form Gas Cartel; Evil Axis Controls US Fuel”

  1. Carla@Kahuna Creations says:

    June 30th, 2010 at 5:11 pm

    I don’t know how they can get away with that.