And what if OPEC retaliates by turning off the taps?
by
RockyMtnGuy
07/11/2007, 10:18 PM #
Threatening OPEC with legal action ignores the fact that the U.S. imports around 6 million barrels per day of oil from OPEC, more than the U.S. produces itself. Nobody outside OPEC has spare production capacity. If OPEC members get ticked off with the U.S., they could just shut off exports and bring the U.S. economy to a screeching halt. A lot of OPEC countries are less than friendly with the U.S., so if push came to shove, they just might do that.
Remember 1973? The Arab oil producers embargoed the U.S. and precipitated the first oil crisis. Gasoline stations ran out and prices quadrupled practically overnight.
Nowadays, U.S. oil production is about half of what it was in 1973, and consumption is much higher. The U.S. imports over 2/3 of its oil and much of its gasoline and diesel fuel. If all the OPEC producers, Arab and non-Arab, pulled the plug, it could be way, way worse than 1973.