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Aggregating Energy Since 2006

Oil, Now Terror Free!

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This is wrong on many levels. Apparently, some entrepreneurs have seized upon U.S. fears of funding terrorists via their SUVs and have started marketing terror-free oil.

The station is owned by the Terror-Free Oil Initiative, a group that promises to sell gasoline sourced from countries that "do not export or finance terrorism."

Even if you can reliably guarantee that the place from where you purchased your oil does not have ties to terror (incidental or purposeful), this is like saying you are buying your grain from farmer 'A' rather than farmer 'B.' Oil, like grain, is a commodity.

When you purchase a commodity, it does not matter from who you purchase it. What matters is that you are purchasing it. Your purchase affects the price and that is what matters. If you participate in the market, you help to keep the price high (supply and demand, folks). Therefore, the U.S. cannot dry up funding for terrorists by buying oil from different origins.

If we decide to stop buying oil from Saudi Arabia and purchase more from Russia (for instance), then China and India (for instance) would not be able to buy as much from Russia any more and would need to find a replacement source. So they will buy from Saudi Arabia.

It does not matter from where we get the oil, the problem is how much we require.

Regardless, most Americans do not know and probably do not care about the economic argument above. Oddly enough, they may not even care that much about terror. They care about price. Or so the writer of that blog entry suggests:

My fellow Omahans seem to be greeting the station with healthy dose of Midwest skepticism. "It's really going to depend on the cost," one told a local news station.

That is funny. Really funny.