One of the more bizarre aspects of the UnitedStates administration’s energy policy has been the hesitation in removing the 1974 U.S. oil embargo. This was instigated in the wake of Saudi Arabia’s “punitive” hold-back of its critical America-bound exports due to President Nixon’s backing of Israel, which resulted in that nation’s victory over Egypt and Syria.
In a paradox of approval, the U.S. Energy Agency is giving global oil producer Shell the green light for drilling in the Arctic while nixing the Trans-Canada XL oil pipeline. These direct shipments of Canadian oil sands are craved by the expanded U.S. refineries around the Gulf of Mexico. With oil prices dropping, expensive Arctic drilling, as well as offshore excavation, would seem superfluous in view of a deepening oil glut at this time.