I have spent a little time this morning thinking about oil. Yes, Texas has oil and gas too, but Obama has done all in his power to curtail oil and gas production in America, all of the increases in production have come in spite of him, not because of his policies. However, the oil and gas pumped in Texas sells at world market prices, and the disruption of supplies from Iraq will drive the prices up here, and you could see gas price going to $6-10 per gallon should they get control of the oil fields in Iraq. Rising oil prices will not due to the interruption of Iraqi production, but the disruption of deliveries out of the Mideast. As long as the markets are in surplus we will not notice it much, but when that surplus has to be replaced is when the higher prices will kick in.
The ISIS’ breakthrough has allowed it to control the two main pipelines: the one exiting toward Banias to supply Syria while the other transporting crude to the Turkish port of Ceyhan. The Islamic Emirate has interrupted the first, causing additional power outages in Syria, but strangely, it allows the second to function. This is because this pipeline is used by the local pro-Israel Kurdistan government to export the oil it just appropriated from Kirkuk. The question is, how can they sell this oil without the US allowing it? All income from it would be devoted to world wide jihadism, to sell it they will have to ship it by truck to the black market like Saddam use to do.
The possible division of Iraq into three countries will reshuffle the oil cards. In the face of the ISIS’ breakthrough, all oil companies have reduced their staff. Some more than others: this is the case of BP, Royal Deutsch Shell (which employs Sheikh Moaz al-Khatib, the geologist former president of the Syrian National Coalition), Türkiye Petrolleri Anonim Ortaklığı (TPAO) and Chinese companies (PetroChina, Sinopec and CNOOC). So the losers are the British, the Turks, and especially the Chinese, who were by far Iraq’s largest customer. The winners are the U.S., Israel and Saudi Arabia.
Along these lines, the U.S. State Department recently singled out Russia, who is a backer of Assad, by name, to criticize its law prohibiting homosexual propaganda aimed at youth, but the same State Department refused to comment on Saudi Arabia where homosexual conduct is punishable by death, but has announced that it will significantly increase its production to compensate for the reduced supply due to the marketing ban by ISIS.
However, the kingdom has never produced more than 10 million barrels per day. The fact that the ISIS’ is financed by Aramco, the Saudi Arabian national petroleum and natural gas company. is enough to explain why Saudi Arabia claims to be able to compensate for the decline in Iraqi production: the kingdom would just put its stamp on the stolen barrels to legalize them. Saudi Arabian is the source of all the Wahhabi Schools worldwide. The European Parliament has identified the Wahhabi movement as the source of global terrorism.
The reason that they are funding ISIS are both ideological and financial. All the oil they will sell for ISIS they will pocket a commission, and high as 50%. Saudi Arabians are Sunni, and the Shi’a have striped the Sunni of power in Iraq. The Sunni believe that they are the one true expression of Islam and it is their way or the highway, or rather, off with their heads!
I took a lot of this from a varied of sources, and I agree with the opinions expressed above. There is ,more to the ISIS emergence than meet the eye.