January 28, 2011 2:44 PM

Energy Secretary Chu: Growing Unrest in the Middle East Could Disrupt American Oil Market

By
Peter Maer
Topics
Foreign Policy

Masked Egyptian demonstrators holds their national flag as they stand next to a burning riot police vehicle in Cairo on January 28, 2011.

(Credit: MOHAMMED ABED/AFP/Getty Images)

In remarks to reporters on Friday, Energy Secretary Steven Chu voiced concern about the potential impact of the growing unrest in the Arab world on energy supplies and prices.

"Certainly any disruption in the Middle East means a partial disruption in the oil we import," Chu said. "It's a world market and that (a disruption) could actually have real harm of the price."

Crude oil prices have already surged in the wake of the trouble in Egypt and concerns that the Cairo chaos could spread to major oil-producing nations.

Egypt's Suez Canal is another source of energy security concern.

The U.S. Energy Information Administration reports petroleum accounts for 16 percent of the cargos flowing through the canal that connects the Red Sea and Gulf of Suez with the Mediterranean Sea. The canal is on the agency's list of "world transit choke points."

Like so many previous energy secretaries, Chu said, " The best way America can protect itself against these incidents is to decrease our dependency on foreign oil, in fact to diversify our supply."

While Egypt is not a major supplier of oil to the U.S., there are obvious concerns about the impact that spreading unrest in the region could have on oil-producing countries.

"We watch these things very closely," Chu said.

Chu commented during a conference call to discuss the administration's long range energy proposals.


Add a Comment
by RickChicago1 January 31, 2011 1:11 PM EST
Thank God Obama's Regime falsified affidavits in Federal Court to justify the drilling moratorium that his OWN experts said was bad for us economically and would kill off over 100,000 jobs. Furthermore his own experts said that the drilling ban was bad for America's energy demands.
So what did the Marxist do? Of course he went ahead made us import millions of barrels of oil EVERY day that we did not import 6-8 months ago. Thank you Obama. Are you doing this on purpose or are just this incompetent???

As the economy tanks even further do to your failed Leftist policies. These same Leftist policies have bankrupted Europe and if you are allowed to you will do them same to America. I have one question. Liberals always try to tell you that they are the Elites of society. I want to know why they continue embracing Leftist policies that have NEVER worked ANYWHERE in the history of the World.

Remember this if Liberals want it then it is a pretty good bet that America will suffer. So EVERY time you fill up remember that Obama is taking that money. Today in Chicago gas was $3.59 a gallon. Cant wait till we are in Summer and paying $4.50 or $5.00 a gallon.
Reply to this comment
by gohan31 January 30, 2011 9:54 AM EST
The drilling of new oil wells is not the problem, it is the refining of the oil. Sweet crude is sweet because it is easier to refine, just about ready to put in your tank or oil pan when it arrives.
Reply to this comment
by Riverjump January 29, 2011 9:52 PM EST
ANNNDDD now gas is already back to 3 bucks.
Reply to this comment
by hdc77494 January 28, 2011 10:21 PM EST
governments, including our own, make far more from oil than the major oil companies. Next, if alternative fuels were cost competitive, they would attract billions in investment and displace oil very quickly. where do you get these ideas?? look at the royalty payments, lease payments and income taxes, and compare it to Exxon's profit margin. Wind power is twice to three times more expensive than oil, and wthenol is 50-75% more both before massive government subsidies. if unrest closes the suez canal and disrupts oil shipping, it will disrupt every economy in the world just like all the gas stations in your city running out of fuel will disrupt your life. blaming the companies that buy it from the middle east and tack on maybe 10% profit is insanity sold to you py politicians trying to keep you from paying attention to what THEY are doing. Obama isn't prepared for Middle East unrest, and has been attacking domestic fuel production nice he came into office. What's he going to do when gas hits $5 a gallon??
Reply to this comment
by amerilatino January 28, 2011 3:32 PM EST
Folks, if an Arab has a wet fart you can rest assured that all the oil brokers in Dallas-Fort Worth and elsewhere will instantly get a woodie. All the more reason to bring alternate fuels onto a nation-wide marketing and distribution network, then you'll see the price of oil products plummet. I can just imagine these suckerfish running off to their favorite legislators with suitcases full of money to claim that alternate fuel is Anti-American, will give you halitosis, or something.
Reply to this comment
by doctor_know January 30, 2011 12:08 AM EST
We are drilling our own oil, and increasing that now will not affect short term importation issues.
by RickChicago1 January 31, 2011 1:15 PM EST
If Obama had not turned off the drilling in the Gulf Of Mexico we would have millions of barrels of oil more EVERY day. By the way did anyone notice that Obama greenlighted a 2 billion dollar loan for Mexico so that they can drill in the same Gulf of Mexico and then sell the oil to America. Any Liberals want to defend that one????

He is either grossly incompetent or a committed Leftist Radical who is intent on global Wealth redistribution. I vote the later.....
No one can be this wrong on all these issues. Even flipping a coin would get a better result.
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