U.S. Should Counter Russia With Mexico, Canada Oil Alliance

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Investors Business Daily:

The House of Representatives' recent vote to end the 40-year-old ban on U.S. crude oil exports was a major step forward in countering one of Russia's latest ploys to use energy as a power-grabbing tool.

 

But analysts have overlooked an important strategic and economic result of Russia's decision to prop up Syrian President Bashar Assad: It lays the groundwork for creating a petroleum-exporting bloc that could be used as leverage to promote a nefarious political agenda.

 

According to the International Energy Agency's September 2015 Market Report, Saudi Arabia is the largest crude oil exporter, at 6.5 million to 7.0 million barrels per day (mb/d), and Russia's estimated 6.25 mb/d comes in a close second.

 

After years of neglecting its energy infrastructure, Iran's crude oil production has climbed to about 2.9 mb/d, and its exports stand at about 1.0 mb/d. But now that President Barack Obama has begun the sanctions-lifting process, Iran expects to increase both its production and its exports, especially if it can attract outside investment and technology — which Russia will provide.