Wednesday, May 18, 2016


We’ll start with the obvious: the number one export for many countries here is crude oil or related petroleum products. Middle Eastern countries made up a significant portion of global oil export revenues during 2015 with shipments valued at $325 billion or 41.3% of global crude oil exports. 
War-torn Afghanistan, which is not a significant producer of petroleum on the world market, gets the majority of its export revenue from different natural resource. Opium is Afghanistan’s most valuable cash crop, and opiates such as opium, morphine, and heroin are its largest export. Fetching an estimated value of $3 billion at border prices, it was estimated to make up about 15% of the country’s GDP equivalent in 2013.
DYI Comments:  The biggest reason for the U.S. invasion of Afghanistan to reestablish the opium trade for the CIA.  The Taliban and other Islamic groups will not tolerate alcohol or drug usage as their measures were far more draconian than the drug dealers, only the U.S. military with its massive firepower to overcome their prohibition.

Despite U.S. fracking and lower oil prices the world is running out of easy to find thereby cheap to develop oil and gas. The push since the end of WWII to hasten the demise of the Soviet Union(which it did) but break Russia apart.  The ultimate goal is for the loss of her political subdivisions east of the Ural Mountains which are rich in natural gas and oil to become new countries "friendly" to the alliance[U.S. U.K. NATO EU].  Currently, the alliance is attempting to push the Russian naval fleet out of the Black Sea in order to significantly reduce her sphere of control in this region.  This is why countries such as Romania (NATO member) military is being beefed up with U.S. aid.  Turkey who is a mortal enemy of Russia is pursuing a big increase in naval assets including the possibility of an aircraft carrier.  The latest push is a training mission in Georgia together with the U.S. and U.K. military.  As you can see from the map below Georgia is on the other side of the Black Sea definitely within Russia's sphere of influence.


The world is in a low intensity oil and gas resource war that will only intensify in the years ahead. Every time oil/gas prices drop either due to geopolitical manipulation or world recession buy your favorite energy mutual fund.  Ours, of course, is Vanguard's Energy fund symbol VGENX.  Prices will quickly rebound.
Vanguard Energy Inv (VGENX)

DYI       

No comments:

Post a Comment