United States of America

United States of America

Tuesday, April 17, 2012

Hormuz Strait Impact


            There are many reasons why we should switch to renewable energy sources. For starters, they are renewable which means that they won’t run out, while non-renewable resources are finite, and can only last so long. Another reason is the cost. As non-renewable resources become scarcer, prices rise. Lastly, making use of renewable energy sources makes it so we don’t have to rely heavily on other countries and nations for things such as oil.  
            Having to rely on other countries and nations for important things like oil has recently become quite a problem. The problem stems from Iran, who has been threatening to close the Hormuz Strait. This is in response to the oil embargo and other sanctions put in place by the UN in order to try to stop Iran’s nuclear power program. Iran is most likely using this problem as a guise to create nuclear weapons. If the Hormuz Strait were to be closed it would affect the entire world’s economy. 20% of the world’s oil passes through the Hormuz Strait. That’s 17 million barrels everyday. The closing of the Strait would cause oil prices to skyrocket, easily doubling the cost. If the Strait is even partially blocked, experts have predicted that it could cause $50 plus increase in prices. Just Iran’s threat has kept oil prices above $100 a barrel. This is because we depend on oil for almost everything. Some say that if Iran closed the Strait then it would essentially be declaring war on the whole world. France, Britain, and US have already sent in warships to the Strait.
            The threat of the havoc it could wreak could easily be avoided if we were able to become more dependent on renewable resources. Renewable resources could easily replace oil. The thing is, the government and people need to be motivated to change. The increasing oil prices and Iran’s threats might help push America towards exploring alternate, and hopefully renewable, energy sources. No nation should be able to have that kind of effect on our economy just by closing a Strait.