Middle East Economic Survey
VOL. XLVII
No 31
Kerry Calls For US ‘Forever Independent Of Mideast Oil’
The Democratic Party nominated Massachusetts Senator John Kerry as its candidate for president in the November 2004 elections during its National Convention in Boston on 26-29 July. Senator Kerry, whose running mate as vice-presidential candidate is Senator John Edwards of North Carolina, is promoting an energy policy that would free the US from foreign oil imports. “We value an America that controls its own destiny because it’s finally and forever independent of Mideast oil,” Senator Kerry told the convention during his acceptance speech on 29 July. “What does it mean for our economy and our national security when we only have 3% of the world’s oil reserves, yet we rely on foreign countries for 53% of what we consume? I want an America that relies on its own ingenuity and innovation – not the Saudi royal family. And our energy plan for a stronger America will invest in new technologies and alternative fuels and the cars of the future – so that no young American in uniform will ever be held hostage to our dependence on oil from the Middle East.”
A Move Beyond OPEC
The Democratic Party energy program, adopted during the party convention, provides a starkly different perspective from that of the Bush administration (MEES, 28 May 2001). It calls for the US to end its dependence on Middle East oil and “move beyond OPEC” through more reliance on US energy sources, the development and implementation of renewable energy sources, investment in the non-OPEC oil industry (Russia, Canada and Africa), and conservation. The energy platform reflects ideas espoused by Senator Kerry over the past several years, calling for the start of a new era that would transform America’s concept of how energy is produced, used and conserved (MEES, 28 January 2002).
Over the last two-and-a-half years, Senator Kerry has expanded on the idea and is promising to implement an energy independence program that advocates alternative energy policies – a program that critics say is impractical. Speaking during campaign stops throughout the US, Senator Kerry said Americans could “build a stronger, safer and more secure America by putting the country on the path to energy independence…an America that is free and independent of Mideast oil.” In Seattle in July the Senator told a crowd of supporters: “Instability and danger in the Middle East are driving up the price of oil. Higher premiums weaken our economy and risk our security. But it doesn’t have to be this way, and together, we’ll make an America that is energy independent.” Senator Kerry went on to say that he would use “America’s renewed position in the world” to engage OPEC nations in diplomacy to persuade them to reduce the price of oil. He added that he would manage the Strategic Petroleum Reserve in a way to protect America’s security “without driving up prices.”
Energy Independence Goal
The 2004 Democratic National Platform Committee Report devotes much of its attention to post-September 11 America: the wars in Iraq and Afghanistan, the war on terrorism, US foreign diplomacy and the waning respect for America abroad. It also states that no strategy for US security is complete without a plan to end America’s dependence on Middle Eastern oil. “The American economy depends on oil controlled by some of the world’s most repressive regimes,” the report says. “This leaves our economy dangerously vulnerable to nations that do not share our interests. America too often is silent about the practices of some governments because we depend on oil they control…. We believe a strong America must move toward energy independence…. Achieving energy independence will improve our ability to protect our values and interests in the world. It will reduce energy costs for our families. It will create high-paying new jobs. And it will improve our environment and make our people healthier.”
Senator Kerry’s “Energy Independence Policy” has been outlined on the ‘Independents for Kerry’ website (www.independentsforkerry.org). The policy calls for the creation of 500,000 new jobs over the next decade and assures American industries that they will lead the new energy economy. The website says that Americans spend $20bn a year on crude oil from the Gulf, “often from nations that are unstable and hostile to our interests and our values.” Senator Kerry believes the US must end “this dangerous dependence” because it leaves American security and economy vulnerable. “Kerry’s plan will reduce oil dependence by 2mn b/d, as much as we currently import from the Middle East,” according to the website. Current US crude oil consumption is over 20mn b/d.
The website then outlines the priorities of Senator Kerry’s Energy Independence Policy:
A new “Energy Security and Conservation
Trust.” This measure calls for the creation of an
Energy Security and Conservation Trust Fund capitalized by existing oil and
gas royalty revenues and dedicated to accelerating the commercialization of
technologies, ie, energy efficient vehicles, development of biofuels, and the
creation of a hydrogen-based economy.
Reducing Oil Dependence by 2mn B/D – As
much as we currently import from the Middle East.
This measure calls for increasing vehicle fuel economy standards to 36 miles
per gallon (mpg) by 2015 and provide tax incentives for consumers to purchase
energy efficient vehicles and to manufacturers who make them.
A Plan to Use Hydrogen throughout the
Nation by 2020. This measure calls for the
development of a hydrogen-based economy using coal and natural gas to produce
hydrogen and eventually produce it entirely from domestic renewable sources
from farms, the wind, solar energy, hydropower and geothermal sources.
Making Our Homes, Offices, Schools and
Cities more Energy Efficient. Citing the fact that
the US economy is more energy efficient today than it was 30 years ago, this
measure calls for the implementation of more energy efficient technologies in
heating, lighting and manufacturing in order to reduce energy consumption. It
calls for the reduction of the US Government’s energy bill by 20% by 2020, a
saving of $8bn over the next 10 years. A challenge will be put to
municipalities, corporations, universities, small businesses and hospitals to
do the same, and tax credits will be provided for energy efficient homes and
buildings.
Assuring 20% of Electricity Comes from
Renewable Sources by 2020. This measure calls for
the creation of a national market for electricity produced from renewable
energy, such as wind, solar, biomass, geothermal and hydrogen, and the
production of 20% of US electricity from renewable sources by 2020.
A New North American Energy Partnership
to Expand the Supply of Natural Gas. This measures
calls for the supply and demand issues surrounding natural gas to be addressed
and that greater cooperation between the US, Canada and Mexico on the issue of
natural gas be implemented through a “North America Energy Initiative.” It
also calls for effective market monitoring and enforcement in order to assure
a fair marketplace for natural gas. The measure calls for developing an
Alaska Natural Gas Pipeline that will carry natural gas from the North Slope
of Alaska to the lower 48 states, it calls for developing natural gas
resources in the Gulf of Mexico, the development of an efficient domestic
natural gas pipeline system in an environmentally safe manner, and it calls
for improvements in US LNG transportation systems.
Redirecting Unwarranted Subsidies to
Invest in the Energy Technologies of the Future.
This measure calls for an end to subsidies paid to large, well-financed energy
companies and for federal funds to be used for the creation of “technologies
that will create energy security, create jobs and protect the environment.” It
calls for the better management of energy and public resources, and it calls
for the closing of a legislative loophole that allows small business owners to
deduct $100,000 for luxury sport-utility vehicles through a law meant to
benefit farmers and others from being penalized by the luxury tax when they
purchase pickup trucks and tractors.
Make Coal Part of the 21st Century Energy Solution. This measure calls for the environmentally safe development and use of American coal reserves through the creation and implementation of clean coal technologies.
National Security And The Middle East
On the issues of national security and the Middle East, the platform committee report states the following: “We need a new national security policy guided by four new imperatives: First, America must launch and lead a new era of alliances for the post-September 11 world. Second, we must modernize the world's most powerful military to meet the new threats. Third, in addition to our military might, we must deploy all that is in America's arsenal – our diplomacy, our intelligence system, our economic power, and the appeal of our values and ideas. Fourth and finally, to safeguard our freedom and ensure our nation's future, we must end our dependence on Mideast oil.”
The report goes on to reassure Israel of continued US Government support under a Kerry Administration saying: “The Democratic Party is fundamentally committed to the security of our ally Israel and the creation of a comprehensive, just and lasting peace between Israel and her neighbors. Our special relationship with Israel is based on the unshakable foundation of shared values and a mutual commitment to democracy, and we will ensure that under all circumstances, Israel retains the qualitative edge for its national security and its right to self-defense.”
On the issue of cutting off funding to terrorist organizations, the Democratic platform singles out Saudi Arabia saying: “We will impose tough financial sanctions against nations or banks that engage in money laundering or fail to act against it…. We will launch a ‘name and shame’ campaign against those that are financing terror. If nations do not respond, they will be shut out of the US financial system. And in the specific case of Saudi Arabia, we will put an end to the Bush Administration's kid-glove approach to the supply and laundering of terrorist money.”
The committee report goes on to say that a Democratic administration will launch a major initiative in public diplomacy “to support the many voices of freedom in the Arab and Muslim world.” It calls for an improvement in the education of the next generation of Islamic youth and a “cooperative international effort to compete with radical Madrassas.” It promises to support human rights groups, independent media, and labor unions dedicated to building a democratic culture in the Islamic world from the grassroots up. “Democracy will not blossom overnight,” the report says, “but America should speed its growth by sustaining the forces of democracy against repressive regimes and by rewarding governments that work toward this end.”