Iran Sanctions More Likely To Hurt U.S. Than Deter Nuclear Program
Commentary by Chris Faulkner
Yes, the international community should do something to prevent Iran from increasing its nuclear capabilities, but imposing an oil embargo could do more harm to the U.S. and other embargoing countries than to the Iranian regime itself.
The U.S. and European Union members agreed “in principle” to an embargo, and Iran has already retaliated with a threat of choking off the Strait of Hormuz, through which one-fifth of the world’s oil trade passes.
A European embargo may actually do little to put pressure on Iran, since Iran could still find a way to sell its oil supply on the global market, either through illegal smuggling or through alternate forms of payment, such as bartering deals or credit agreements. Consider also the fact that the majority of Iranian exports go to Asian nations. Countries like China, which buys 22% of Iran’s oil, could benefit from lower prices as Iran seeks to dump more crude there, while we in the U.S. will be paying higher prices – from $4.00 to $5.00 a gallon — for crude imported from other countries.
That’s the potential cost to us in the form of higher gas prices, but also ominous is the potential cost to us in the form of military resources and perhaps even lives lost as our war ships are deployed to the Strait of Hormuz in an effort to thwart Iran’s attempts at blocking all exports.
In the end, an oil embargo on Iran may have no economic impact on Iran, let alone slow Iran’s work on nuclear technology; but, in the meantime, we’ll all be paying the price.
Chris Faulkner was interviewed by Fox Business on these topics and more. You can watch the interview here: http://video.foxbusiness.com/v/1395056671001/why-the-us-will-benefit-from-keystone-pipeline/?playlist_id=87247
Chris Faulkner, Chief Executive Officer Breitling Oil & Gas, drives the company’s long-range economic and energy outlooks, which serve as the basis for strategic planning as well as investor relations, short and long-term business strategy, mergers and acquisitions, and the development and application of new and existing technology for optimizing recovery efficiency within Breitling’s conventional and unconventional resources, financial management, investor relations, short and long-term business strategy, mergers and acquisitions and vendor relationship management divisions of the company.
His diverse and extensive background in the oil and gas industry in North America, Europe and the Middle East covers all aspects of oil and gas operations, including project management, production, facilities, drilling and business development. Mr. Faulkner serves as an advisor to the ECF Asia Shale Committee and sits on the Board of Directors for the North Texas Commission.
Mr. Faulkner has been featured in numerous publications, including American Oil and Gas Investor, Energy Today, EuroAsia Industry, D Magazine and the Dallas Morning News. He is a frequent lecturer at industry events and is a member of many industry organizations, including the Texas Alliance of Energy Producers, the Dallas Petroleum Club, Independent Petroleum Association of America, Texas Alliance of Energy Producers and Texas Independent Producers and Royalty Owners Association. He is actively involved in local and national philanthropic and non-profit organizations, including Dallas Performing Arts, Texas CAN-DO, American Heart Association and Big Brothers Big Sisters.
Mr. Faulkner studied biomedical engineering at Southern Methodist University, business and mathematics at Baylor University, and earned his Master of Information Science degree at the University of North Texas. He received an honorary doctorate degree for his achievements in business administration from Concordia College.