Oil Producers and Their Governments

TriangleofDoomgc2reddit-logoOff the keyboard of Steve Ludlum

Follow us on Twitter @doomstead666
Friend us on Facebook

Published on the Economic Undertow on June 2, 2018

Discuss this article at the Geopolitics Table inside the Diner

Being a top oil producing country is not conducive to good government.

Looking at the top fifteen oil producing states, nine are autocracies, seven of which are of long standing. Only three are democratic republics. Two other producer states are transitioning to single-party status or decaying to warlordism. While the US is officially a democratic, multi-party republic, it is a de-facto corporate autocracy. The policy impulse for the US establishment as it is for other single party states is enrichment of elites: waste-based, finance-driven ‘growth’ regardless of the cost, ‘out of the barrel of a gun’ as necessary; (from Wikipedia):

 

  Country Oil Production, Bbls/day Political System
World Production 80,622,000 Indicates OPEC membership
1 Russia 10,551,497 Single-party police state
2 Saudi Arabia 10,460,710 Monarchy/Single-party police state
3 United States 8,875,817 Corporate autocracy
4 Iraq 4,451,516 Iranian protectorate.
5 Iran 3,990,956 Single-party police state
6 China 3,980,650 Single-party police state
7 Canada 3,662,694 Multi-party republic
8 United Arab Emirates 3,106,077 Monarchy – effective single-party state
9 Kuwait 2,923,825 Monarchy – effective single-party state
10 Brazil 2,515,459 Transitional*
11 Venezuela 2,276,967 Single-party police state
12 Mexico 2,186,877 Transitional**
13 Nigeria 1,999,885 Multi-party republic
14 Angola 1,769,615 Effective single-party state
15 Norway 1,647,975 Multi-party republic

* Brazil is in the process of transitioning to military rule or single party status.
** Mexico is in the process of transitioning to warlord (failed) state or control by criminal gangs.

Petroleum resources offer enormous leverage for those able to gain control over them; at the same time control over the resources offers political advantages that are both obvious and difficult to overcome. Because of its dependence on integrated refining, processing and distribution infrastructure, petroleum is a resource that lends itself to ‘cartelization’. A government has only to create a monopoly to access resources at hand or take over control of existing businesses and combine them together.

Because of the absence of public input or a ‘negative feedback channel’ to restrain leadership, single-party states tend to be militaristic. Control over large petroleum resources offers managers the appearance of the means to dominion, to overrun or undermine neighbors, to expand control over resources or to destroy consumption in target countries so that it can be exported elsewhere:

  Country Military Expenditures (in US dollars) Current Wars – Potential Wars
1 Russia $63 billion Ukraine, Syria – Poland, Baltic states, Balkan states
2 Saudi Arabia $69.5 billion Yemen, Syria – Qatar, Egypt, Lebanon, Iran
3 United States $610 billion Afghanistan, Iraq, Syria, Pakistan, Somalia, western Africa – China/North Korea, Iran, Venezuela, Mexico
4 Iraq $19.4 billion Turkey, Syria, Islamic militants
5 Iran $14 billion Iraq, Yemen, Syria, Turkey – US, Saudi Arabia
6 China $228 billion Low intensity war in Xinjiang – US, Vietnam, S. Korea, Japan
7 Canada $20.6 billion Various support efforts for US and Nato
8 United Arab Emirates $21.8 billion Yemen
9 Kuwait $7 billion Iran
10 Brazil $29.3 billion Civil war
11 Venezuela $4.5 billion Civil war, US
12 Mexico $6 billion Civil war
13 Nigeria $1.8 billion Civil war vs Islamic militants and others
14 Angola $2.3 billion South Africa, civil war
15 Norway $6.3 billion Russia

The US gets away with its belligerence because the dollar is the world reserve currency; Wall Street simply produces dollar credit on demand, borrowers both domestic and abroad wind up indirectly funding the US war machine. Because Wall Street cannot lend resources into existence, credit creation runs ahead of available resources as they are depleted. At the same time, the US must hunt everywhere for new resources to cannibalize … or rivals to destabilize. In a way, the US has given itself no other choice, wasting fuel and other resources is what makes up our precious lifestyle.

Primary credit providers such as Great Britain during its imperial heyday are aggressive in preserving their credit monopoly, exorbitant privilege. The US’ role as primary credit provider suggests conflict with China is likely, perhaps between the two countries’ proxies on- or near the Korean peninsula or in the South China Sea. It is probable none of the autocrats in either country understand credit provision and the necessary infrastructure, these being a native currency, a treasury, a lender of last resort, strong commercial banks (able to distribute their own losses into the general economy); also private property, equitable regulation, enforceable contracts, the rule of law and a body of jurisprudence. All of these marshaled over time equal ‘creditworthiness’; the last three — enforceable contracts, rule of law and body of jurisprudence — are absent in China. Without fundamental changes, it will rely on external (dollar) credit. As it is, of the fifteen top oil producers, only the US is a credit provider, a status that required over 100 years and the exhaustion of Great Britain in two world wars to achieve.

As economic activity continues or increases, so does resource depletion. It is not depletion per-se that is causing problems within individual countries but the larger dynamics, energy deflation and dollar preference. The peripheral countries are affected first.

Single party states = poor economic management; inflation in Iran, (Prof. Steve Hanke):

Figure 1: Annual inflation in Iran is now running 78%. Iranians are ‘voting with their wallets’ and using the local currency to buy whatever dollars they can get their hands on.

Figure 2: Inflation in Venezuela is accelerating, now an amazing 30,000%+. Venezuela has the world’s largest reserves of oil but it does not matter: the country lacks the funds to access them, even as Venezuelans must either flee their country or face starvation.

There is inflation elsewhere: official figures tend to understate actual rates of inflation because they discount black-market rates; Angola, 30%; Nigeria, 16%; Russia, 4%, etc.

The question for Americans and the West becomes how much erosion of rights and privileges will people accept, how many wars, how much ruin; how far down the rat hole to we travel before questioning the energy-wasting status quo? How much are we prepared to give up for illusions?

Knarf plays the Doomer Blues

https://image.freepik.com/free-icon/musical-notes-symbols_318-29778.jpg

Support the Diner
Search the Diner
Surveys & Podcasts

NEW SURVEY

Renewable Energy

VISIT AND FOLLOW US ON DINER SOUNDCLOUD

" As a daily reader of all of the doomsday blogs, e.g. the Diner, Nature Bats Last, Zerohedge, Scribbler, etc… I must say that I most look forward to your “off the microphone” rants. Your analysis, insights, and conclusions are always logical, well supported, and clearly articulated – a trifecta not frequently achieved."- Joe D
Archives
Global Diners

View Full Diner Stats

Global Population Stats

Enter a Country Name for full Population & Demographic Statistics

Lake Mead Watch

http://si.wsj.net/public/resources/images/NA-BX686_LakeMe_G_20130816175615.jpg

loading

Inside the Diner

I should also point out, Depression is one of the 5 stages of grief. And it seems a pretty reasonable response.Being scared shitless is also a proper response.Which brings up this article- Time To Panic- And fear may be the only thing that saves us....

The full article (as a whole) is now up. Donehttps://darkgreenmountainsurvivalresearchcentre.wordpress.com/2019/02/19/acceptance-and-triage-the-adapters-movement/As a bonus, De Nob, Administrator of The Canadian Preppers Network and The International...

Quote from: Eddie on Today at 08:30:17 AMIt's just that the breakfast videos come on at 10 am my time and I don't eat breakfast on work days...so I'm hungry as hell. Last thing I want to look at is a tasty omelette.I'l...

It's just that the breakfast videos come on at 10 am my time and I don't eat breakfast on work days...so I'm hungry as hell. Last thing I want to look at is a tasty omelette.I'll check out the crab video, being a veteran crab boiler myself, even thoug...

Where El Chapo Could End Up: A Prison ‘Not Designed for Humanity’https://www.nytimes.com/2019/02/15/nyregion/el-chapo-prison.html

Recent Facebook Posts

The Adapters Movement- In Four Parts. Part II- Acceptance

Our society and life support system (the environment, economy, resource base and social bonding ties) is like a terminally ill patient. Most..

24 minutes ago

How America’s Dictatorship Works

How America’s Dictatorship Works– Trump could not have become America’s President if he had not won the “vote” of his nation’s second-largest..

25 minutes ago

The Empty Promises of Science – And Everyone Else – Survival Acres

There is a huge disconnect between what the news reports, what politicians accept, what people believe and what is actually happening within..

29 minutes ago

It’s Even Worse Than Ilhan Omar Said: AIPAC Is the Tip of the Israel Lobby Iceberg

It’s Even Worse Than Ilhan Omar Said: AIPAC Is the Tip of the Israel Lobby Iceberg– As an AIPAC insider once said: “A lobby thrives in the..

30 minutes ago

Nancy Pelosi to Europe: Trump is not the boss

Nancy Pelosi to Europe: Trump is not the boss. The house speaker underlined ‘power of the purse’ belongs to Congress, not the president.

37 minutes ago

Diner Twitter feed

Knarf’s Knewz

The house speaker underlined ‘power of the purse’ [...]

Sen. Bernie Sanders, I-Vt., speaks about his new b [...]

The Jesus movement was never against the rich. It [...]

Quote from: knarf on February 17, 2019, 06:00:56 A [...]

48 minute PODCASThttps://overcast.fm/+Ip8zHneaI [...]

Diner Newz Feeds
  • Surly
  • Agelbert
  • Knarf
  • Golden Oxen
  • Frostbite Falls

too funny not to share. a collapse aware comic str [...]

Enjoyed those last new articles...  [...]

Ancient Earth’s Weakened Magnetic Field May Have D [...]

Venomous yellow scorpions are moving into Brazil’s [...]

Doomstead Diner Daily February 18The Diner Daily i [...]

I go by a coal train almost every day.  It goes No [...]

 [img]https://ci6.googleusercontent.com/proxy/7Iwt [...]

Quote from: Surly1 on February 15, 2019, 08:58:33 [...]

Quote from: AJ on February 15, 2019, 04:46:34 AMQu [...]

QuoteSo this is how freedom dies -- with a ramblin [...]

The house speaker underlined ‘power of the purse’ [...]

Sen. Bernie Sanders, I-Vt., speaks about his new b [...]

The Jesus movement was never against the rich. It [...]

Quote from: knarf on February 17, 2019, 06:00:56 A [...]

48 minute PODCASThttps://overcast.fm/+Ip8zHneaI [...]

I was there in '66 when the old man worked at [...]

Too bad. I was in Boston exactly once, in 1985, wh [...]

Video capturing the heartbreaking moment when a tw [...]

You're probably right. And so is JHK. LOL. [...]

Quote from: Eddie on January 21, 2019, 09:28:37 AM [...]

The Iditarod, "The Last Great Race on Earth [...]

Quote from: Eddie on February 06, 2019, 08:06:11 A [...]

Good. Now treat him decently, even though he disag [...]

http://www.youtube.com/v/38AYeNGjqg0In the Sp... [...]

Print on Card Stock or better still Glossy Photo P [...]

Alternate Perspectives
  • Two Ice Floes
  • Jumping Jack Flash
  • From Filmers to Farmers

About That Liberal Media.... By Cognitive Dissonance   Charts and Info from Business Insider   I dis [...]

Perhaps It’s Time to Believe the Impossible By Cognitive Dissonance     "Alice laughed: "T [...]

The Essence of Control Is Its Concealment By Cognitive Dissonance   For thousands of years “control” [...]

There Will Be Blood…and Many More Lies By Cognitive Dissonance   I suppose if we randomly stopped pe [...]

A Few Screws Loose By Cognitive Dissonance     Twice a year, usually in the spring and fall, I haul [...]

Event Update For 2019-02-17http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.htmlThe [...]

Event Update For 2019-02-16http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.htmlThe [...]

Event Update For 2019-02-15http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.htmlThe [...]

Event Update For 2019-02-14http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.htmlThe [...]

Event Update For 2019-02-13http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.htmlThe [...]

With fusion energy perpetually 20 years away we now also perpetually have [fill in the blank] years [...]

My mea culpa for having inadvertently neglected FF2F for so long, and an update on the upcoming post [...]

NYC plans to undertake the swindle of the civilisation by suing the companies that have enabled it t [...]

MbS, the personification of the age-old pre-revolutionary scenario in which an expiring regime attem [...]

Daily Doom Photo

man-watching-tv

Sustainability
  • Peak Surfer
  • SUN
  • Transition Voice

Non-stick Pans and Sticky Memes"We have, through accident or design, structured the human ecology into a zero sum game, where [...]

Dancing with Ulysses"While it is yet unknowable if humans have the capacity to actually reverse climate change, a s [...]

Sargon and the Sea Peoples"For hundreds of years, stories of marauding Sea Peoples were told to frighten children."  [...]

Burning Down the Wall"Put a CARBONATOR-500 in a village in Honduras and you reverse the migrant caravans."Recen [...]

What can you do to prepare when you can’t?"A split vortex sending waves of cold into North America, Europe and Russia is what a warmer oc [...]

The folks at Windward have been doing great work at living sustainably for many years now.  Part of [...]

 The Daily SUN☼ Building a Better Tomorrow by Sustaining Universal Needs April 3, 2017 Powering Down [...]

Off the keyboard of Bob Montgomery Follow us on Twitter @doomstead666 Friend us on Facebook Publishe [...]

Visit SUN on Facebook Here [...]

To fight climate change, you need to get the world off of fossil fuels. And to do that, you need to [...]

Americans are good on the "thoughts and prayers" thing. Also not so bad about digging in f [...]

In the echo-sphere of political punditry consensus forms rapidly, gels, and then, in short order…cal [...]

Discussions with figures from Noam Chomsky and Peter Senge to Thich Nhat Hanh and the Dalai Lama off [...]

Lefty Greenies have some laudable ideas. Why is it then that they don't bother to really build [...]

Top Commentariats
  • Our Finite World
  • Economic Undertow

Welcome to the US in 2043 after the The New Green Deal has transformed the society! https://theinter [...]

The Agenda of indoctrination for the age of 'globulal verming' is simply to prepare the ne [...]

"The global economy’s loss of momentum has left expansion now looking like its weakest since th [...]

Even with cheap energy, labour and resources luckily found at home or plundered abroad, without the [...]

We live in CA, and it's definitely a state with a lot of people with money and as such not real [...]

As some one who has spent years trying to figure out what the limits to growth are. let me say that [...]

Peak oil definitely happened for gods sake. Just because it isn't mad max right now is no indic [...]

@Volvo - KMO says he made some life choices he regrets. Not sure what they were. And I don't th [...]

I think KMO went on to do a bunch of prep, counting on peak oil coming soon. That didn't pan ou [...]

Here is a really good post on farming and meat eating from theautomaticearth: https://www.theautomat [...]

RE Economics

Going Cashless

Off the keyboard of RE Follow us on Twitter @doomstead666...

Simplifying the Final Countdown

Off the keyboard of RE Follow us on Twitter @doomstead666...

Bond Market Collapse and the Banning of Cash

Off the microphone of RE Follow us on Twitter @doomstead666...

Do Central Bankers Recognize there is NO GROWTH?

Discuss this article @ the ECONOMICS TABLE inside the...

Singularity of the Dollar

Off the Keyboard of RE Follow us on Twitter @doomstead666...

Kurrency Kollapse: To Print or Not To Print?

Off the microphone of RE Follow us on Twitter @doomstead666...

SWISSIE CAPITULATION!

Off the microphone of RE Follow us on Twitter @doomstead666...

Of Heat Sinks & Debt Sinks: A Thermodynamic View of Money

Off the keyboard of RE Follow us on Twitter @doomstead666...

Merry Doomy Christmas

Off the keyboard of RE Follow us on Twitter @doomstead666...

Peak Customers: The Final Liquidation Sale

Off the keyboard of RE Follow us on Twitter @doomstead666...

Collapse Fiction
Useful Links
Technical Journals

The wood rot decay of structures and buildings in Norway represents high costs. This paper reports t [...]

Since 1850, the rise in global mean surface temperatures (GMSTs) from increasing atmospheric concent [...]

Strong cold surge events (CSEs) are some of the most distinct winter weather events in East Asia, im [...]

Climate change incorporation in environmental assessment is a growing research area, particularly fo [...]

Follow on our http://www.doomsteaddiner.net/forum/