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    Middle East
     Jun 16, 2007
Page 1 of 2
The wars that oil the Pentagon's engine
By Michael T Klare

Sixteen US gallons - more than 60 liters - of oil. That's how much the average American soldier in Iraq or Afghanistan consumes on a daily basis - either directly, through the use of Humvees, tanks, trucks and helicopters, or indirectly, by calling in air strikes.

Multiply this figure by 162,000 American soldiers in Iraq, 24,000 in Afghanistan, and 30,000 in the surrounding region (including sailors aboard US warships in the Persian Gulf) and you arrive at about 13.25 million liters of oil: the daily petroleum tab for US



combat operations in the Middle East war zone.

Multiply that daily tab by 365 and you get 4.9 billion liters: the estimated annual oil expenditure for US combat operations in Southwest Asia. That's greater than the total annual oil usage of Bangladesh, population 150 million - and yet it's a gross underestimate of the Pentagon's wartime consumption.

Such numbers cannot do full justice to the extraordinary gas-guzzling expense of the wars in Iraq and Afghanistan. After all, for every soldier stationed "in theater", there are two more in transit, in training, or otherwise in line for eventual deployment to the war zone - soldiers who also consume enormous amounts of oil, even if less than their compatriots overseas. Moreover, to sustain an "expeditionary" army located halfway around the world, the US Defense Department must move millions of tons of arms, ammunition, food, fuel and equipment every year by plane or ship, consuming additional tanker-loads of petroleum. Add this to the tally and the Pentagon's war-related oil budget jumps appreciably, though exactly how much we have no real way of knowing.

And foreign wars, sad to say, account for but a small fraction of the Pentagon's total petroleum consumption. Possessing the world's largest fleet of modern aircraft, helicopters, ships, tanks, armored vehicles, and support systems - virtually all powered by oil - the Department of Defense (DoD) is the world's leading consumer of petroleum. It can be difficult to obtain precise details on the DoD's daily oil hit, but an April report by a defense contractor, LMI Government Consulting, suggests that the Pentagon might consume as much as 340,000 barrels (53 million liters) every day. This is greater than the total national consumption of Sweden or Switzerland.

Not 'guns vs butter' but 'guns vs oil'
For anyone who drives a motor vehicle these days, this has ominous implications.

With the price of gasoline in the United States now 75 cents to US$1 a gallon (20-26 cents a liter) more than it was just six months ago, it's obvious that the Pentagon is facing a potentially serious budgetary crunch. Just like any ordinary American family, the DoD has to make some hard choices: it can use its normal amount of petroleum and pay more at the Pentagon's equivalent of the pump, while cutting back on other basic expenses; or it can reduce its gasoline use to protect favored weapons systems under development.

Of course, the DoD has a third option: it can go before Congress and plead for yet another supplemental budget hike, but this is sure to provoke renewed calls for a timetable for a US troop withdrawal from Iraq, and so is an unlikely prospect at this time.

Nor is this destined to prove a temporary issue. As recently as two years ago, the US Department of Energy (DoE) was confidently predicting that the price of crude oil would hover in the $30-per-barrel range for another quarter-century or so, leading to US gasoline prices of about $2 per gallon (53 cents a liter). But then came Hurricane Katrina, the crisis in Iran, the insurgency in southern Nigeria, and a host of other problems that tightened the oil market, prompting the DoE to raise its long-range price projection into the $50-per-barrel range. This is the amount that figures in many current governmental budgetary forecasts - including, presumably, those of the DoD.

But just how realistic is this? The price of a barrel of crude oil today is hovering in the $66 range. Many energy analysts now say that a price range of $70-$80 per barrel (or possibly even significantly more) is far more likely to be our fate for the foreseeable future.

A price rise of this magnitude, when translated into the cost of gasoline, aviation fuel, diesel fuel, home-heating oil, and petrochemicals will play havoc with the budgets of families, farms, businesses, and local governments. Sooner or later, it will force people to make profound changes in their daily lives - as benign as purchasing a hybrid car in place of a sport-utility vehicle or as painful as cutting back on home heating or health care simply to make an unavoidable drive to work.

It will have an equally severe affect on the Pentagon budget. As the world's No 1 consumer of petroleum products, the DoD will obviously be disproportionately affected by a doubling in the price of crude oil. If it can't turn to Congress for redress, it will have to reduce its profligate consumption of oil and/or cut back on other expenses, including weapons purchases.

The rising price of oil is producing what Pentagon contractor LMI calls a "fiscal disconnect" between the US military's long-range objectives and the realities of the energy marketplace. "The need to recapitalize obsolete and damaged equipment [from the wars in Iraq and Afghanistan] and to develop high-technology systems to implement future operational concepts is growing," it explained in an April report. However, an inability "to control increased energy costs from fuel and supporting infrastructure diverts resources that would otherwise be available to procure new capabilities".

And this is likely to be the least of the Pentagon's worries. The DoD is, after all, the world's richest military organization, and so can be expected to tap into hidden accounts of one sort or another to pay its oil bills and finance its many pet weapons projects. However, this assumes that sufficient petroleum will be available on world markets to meet the Pentagon's ever-growing needs - by no means a foregone conclusion. Like every other large consumer, the DoD must now confront the looming - but hard to assess - reality of "peak oil" and the very real possibility that global oil production is at or near its maximum sustainable ("peak") output and will soon begin an irreversible decline.

That global oil output will eventually reach a peak and then decline is no longer a matter of debate. All major energy organizations have now embraced this view. What remains open for argument is precisely when this moment will arrive. Some experts place it comfortably in the future - meaning two or three decades from now - while others put it in this very decade. If there is a consensus emerging, it is that peak oil output will occur somewhere around 2015.

Whatever the timing of this momentous event, it is apparent that the world faces a profound shift in the global availability of energy as we move from a situation of relative abundance to one of relative scarcity. It should be noted that this shift will apply, above

Continued 1 2  


More bang for the buck (Feb 8, '07)

Riches keep the US in Iraq (Jan 17, '07)



1. How currency devaluation destroys wealth 

2. A general in God's patriotic army

3. Kim Jong-il's vanishing act

4. Bomb, bomb, bomb Iran

5. Keeping China's best and brightest at home 

6. A grand bargain Russia might just refuse

7The struggle for Kirkuk turns ugly

8. A voice for the Afghan insurgency

(24 hours to 11:59 pm ET, June 14)

 
 



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