Showing posts with label Exxon Mobil. Show all posts
Showing posts with label Exxon Mobil. Show all posts

Tuesday, April 08, 2014

The Cosmic Microwave Background and U.S. Sanctions on Russia


Amidst the searching for a foreign 777 aircraft and the shooting at Fort Hood, there has been limited discussion if any regarding the response of Putin to the announcement on the pinprick sanctions Obama has levied against the former Soviet Union.

Though it is not often that I can take concepts of physics and apply them to the maladaptive reasoning and practices of U.S. foreign policy, when I do I try and take complete advantage of it. To start with in Physics, there is a concept called cosmic microwave background and it refers to the radiation in the universe that is around as a consequence of the Big Bang, assuming you accept the Big Bang. Also known as relic radiation, it is the oldest light in the Universe and for our purpose keeps in mind the word ‘relic.”

Now traditionally, the manner in which the U.S. and the west have approached international diplomacy and foreign policy can be compared to as a form of cosmic microwave background. Namely because the manner of our foreign policy and the way in which we practice it is not associated with any give nation (star), yet still it maintains the same background glow and radiation. Applying this to Russia one can assume that Russia is a star like no other, albeit we approach it as if what we enact with respect to Iran, Cuba and Syria for example, and worse, even think it will be just as effective and that as a nation (star) we are sagacious in doing such.
 

Since President Obama announced he would be attempting to pressure Russia via economic sanctions, one would hope he has observed that the practice of saying and doing the same thing regardless of if the light being targeted is from the star, or some other background manifestation is troubling and we all should be able to see such based on Putin’s response. Since Obama’s announcement several things have happened since then.  Not in any particular order, the first is that Russia has indicated that it may counter sanctions with a foreign real estateban for officials in their government. A high level Russian official has asked that the United Russia parliamentary caucus Lower House Committee for Security and Countering Corruption to complete an amendment to an earlier bill that will forbid top level Russian officials, both elected and appointed, to hold foreign bank accounts and possess shares in foreign companies.

In addition to this, after U.S. “to big to fail” bank J.P. Morgan Chase blocked a remittance from the Russian Embassy in Kazakhstan to an insurance agency, Putin ordered the Russian Central Bank (RCB) to start producing a 5 Ruble gold coins “containing .1244 Troy ounces of .900 pure gold” which Russia anticipates would become an alternative (and even worse the standard) for pursuing energy over the dollar and the Euro. This plan also includes the creation of a national payment settlement system completely new and outside of western oligarchical banks that could rival the Society for Worldwide Interbank financial Telecommunications (SWIFT) transactions, of which it is more than plausible that the other BRIC nations will join and applaud. Plus, none of the aforementioned includes the recent oil deal Russia inked with China for an estimated $85 billion or the multi-billion dollar oil for food deal they recently negotiated with Iran

Although I suspect President Obama knew that any mention of economic fiats against Russia would be bring back some push from Russia, I don’t know if he realizes that it will be impossible for him to get complete corporations with the world leaders of the largest national economies. Especially nations such as China, India and Brazil.

First India and Brazil are not interested in helping Washington punish a fellow BRIC member, especially given that India is mad about that little thang with their diplomat in New York and Brazil still fuming about the NSA spying allegations. Not to mention that historically, neither supported the U.S. actions in Libya (albeit they did not vote against it) and despises U.S. actions in Syria. Again, assuming all actions to light are the same, as if we expect other nations to take the same political position of the U.S. on all foreign policy matters.


Even at home, there are a few problems, mainly the fact that ExxonMobil and Russian Energy giant Rosneft are exploring for oil together as part of a $500 billion joint venture in the Artic. Of which Chairman and CEO of Exxon Mobil Rex Tillerson to let Russia be and not try and isolate them with sanctions. Then there is the difficulty the U.S. government finds itself in trying to get Europe to support even tougher sanctions.

Regardless of the prior fact, the point is that the laws of Physics always will defeat man made laws, views, beliefs and policies because they are natural laws and not contrived, Obama need to recognize, his sanctions don’t mean jack, even if he had Germany, Switzerland and Brittan with him, because there will always be a Cosmic Microwave Background in the Universe of international politics and foreign policy.

Monday, August 07, 2006

E 85

With all of this talk about fuel, rising oil and gasoline prices, it strikes me as off-based that we as a country have not mandated or twisted the arms of big oil companies and automobile manufactures to get on the ball and do something. Supposedly there is something being done, a new fuel, which has been around for a while is currently on the market. E85 is a blend of 85% ethanol and 15% unleaded gasoline that is used in flexible fuel vehicles. The U.S. Department of Energy is classified as an alternative fuel.
According to the federal government, an alternative fuel is a fuel that can be used over regular vehicular fuels such as gasoline and include natural gas, and alcohol (including ethanol and methanol) among others. A flexible fuel vehicle (FFV) is a vehicle that can run on a blend of ethanol up to 85% and/or straight unleaded gasoline.


Since 1869 US crude oil prices when adjusted for inflation averaged about $18.59 per barrel World crude oil prices over the same time period averaged $19.41 per barrel. In 1980 and 1990, crude oil was $37.42 and $23.19 respectively per barrel. As of June 30, 2006, U.S. crude oil prices per barrel were $73.78.
High oil prices have aided to the record earning accrued by companies like Exxon Mobil, which reported a first-quarter profit of $8.4 billion this past April. But I do not foresee any change in the cost of crude oil with increasing demand and US lazy and selfish Americans driving more each day and out penchant for large gas guzzling automobiles. They say that Alternative fuels like E85 are the wave of the future. However, auto manufactures are resisting the change especially in concert with the big oil corporate giants in the US and abroad. In addition, it is difficult to get E*% in most places. There only three laces in Georgia, nine in Texas, six in New York, and four in California. Iowa retailers indicate the highest monthly sales for E85 in comparison to any other states in the country.

Politicians should put their money where their mouth is and focus on legislation that would force big oil companies and automobile manufactures to be proactive in this quest for alternative fuels or else we may be back to the horse and carriage days on I-85 in the future – real soon.