Oil prices due to rise again?
Nigeria under threat by MEND, GOP under threat by Pelosi

The Nigerian light sweet crude oil lines are again under fire by MEND (Movement for the Emancipation of the Niger Delta), as the militant thugs threaten to destroy “the Chanomi creek pipeline and other major pipelines” within the next 30 days.

Tho the crude represents only about 8% of the US imports, the Nigerian disruptions by the militants, disgruntled about the lack of oil revenue sharing, affects the global supply. The Nigerian government’s oil firm, NNPC, said they had paid what is tandamount to extortion funds in the amount of $12 million to the militants to protect the supply lines. But according to the militants, that check in the mail hasn’t arrived.

According to Paul Richter, in a June 29th, 2008 LA Times article, the gangs are armed with surface-to-air missiles, bazookas, and have mastered the art of siphoning thousands of gallons to barges, where they then sell it on the black market. Their most recent activity has cut the output by 1 million brls daily.

Even the off shore rigs in the area are not immune to their attacks, with a Shell rig shutting down after a midnight raid by the militants in speedboats. The non stop violence, combined with the corruption on both sides in the area, has got the oil companies thinking twice about their current investments… or, for that matter, considering any others in the petroleum rich region for the future.

Some senior U.S. military and North Atlantic Treaty Organization officials have urged the Bush administration to build up Nigeria’s weak coastal navy, or even use U.S. naval vessels along with other regional forces to patrol Nigerian waters, said officials who spoke about the internal discussions on condition of anonymity.

U.S. officials say they are taking limited steps to strengthen the Nigerian military. But, despite intermittent reports in the Nigerian news media, they said the United States has no intention of intervening militarily.

The Bush administration has tried to spur a political settlement with the rebels. But U.S. officials have complained that the efforts have met with resistance, in part because civilian and military officials are content with the situation, which provides revenue and helps maintain their influence.

“All the actors in the delta are benefiting from the status quo,” said one U.S. official, who declined to be identified because of the diplomatic sensitivity of the issue. “They’ll do their best to stop any peace process; it threatens their business.”

There have been accusations that the Bush administration has not done enough to appease the situation… wow, how much of a surprise is that? However if ever there was a perfect example of a “war for oil”, military action in Nigeria would fit the bill. And the likelihood of public support is slim at best.

Perhaps a cut off is just what the Nigerians and their militants need… sans oil, they are left to fight over nothing, and their corrupt leaders would find themselves in peril of losing their perks. But replacement of light sweet crude is not easy… especially when US Congressional leader, Nancy Pelosi refuses to allow the GOP “all of the above” energy plan to come to the floor for a vote.

NOTE: The liberal regulars here will love that I use the left wing McClatchy sourced article INRE Pelosi’s super ego on her Speaker power… or as the Speaker says herself:

Official comments from Republican Leader, John Boehner:

“We want to bring more American-made energy. We want to make sure Americans know who is for it and who is opposed to it. I know [Speaker Pelosi’s] members are getting a lot of heat because her members are no different than me. I go out in my district, I go out in other members’ districts, where I’m going and I hear from everybody I talk to. $4 gas has woken up the American people to this issue and Nancy Pelosi and the liberals who run the Congress, they worship at the altar of radical environmentalism and as a result will do everything they can to block a vote. They won’t allow us to vote… What do we have to fear in Democracy in letting the Members of Congress vote on this issue because if there is a vote, I’ll tell you it will pass this time, there’s no question it will pass.” (AUDIO)

~~~

“We’ve got to do all of the above. We’ve got to conserve as much fuel as we can, we need biofuels, we need to develop our alternative fuels whether it be wind, geothermal, hydropower, all of those. We need to have nuclear energy. Today, almost 80 percent of France’s electricity comes from nuclear energy. It’s the cleanest form of energy, there’s no reason why we shouldn’t be doing more of it here. And we need to drill more. We can’t keep making excuses, blaming the oil companies … blaming people who buy big cars and that’s what the liberals want to do. They want to blame everybody. And the fact is, we’ve got to drill. We’ve got to do all of the above if we’re serious about taking steps toward energy independence. And here we are on the eve of Independence Day and here’s Nancy Pelosi and Harry Reid doing everything they can to block a big step toward energy independence.” (AUDIO)

The US would do well to prepare to abandon the Nigerian chaos by planning an “all of the above” approach for energy indepencence. But the majority Democrats have their own ideas for an energy plan:

“Right now, our strategy on gas prices is ‘Drive small cars and wait for the wind,’ ” said a Democratic aide.

Boy, don’t that make you feel secure in our future?