Mr. Chairman, Members of the Committee, about ten years ago, Osama bin Laden stated that his target price for oil is $144 a barrel and that the American people, who allegedly robbed the Muslim people of their oil, owe each Muslim man, woman, and child $30,000 in back payments. At the time, $144 a barrel seemed farfetched to most. Today, bin Laden is a mere $20 a barrel short of his target and there is little doubt it will be attained. I would like to impress upon this Committee that $144 a barrel oil will be perceived as a victory for the Jihadist movement and a reaffirmation that the economic warfare component of its campaign against the West is a resounding success. There is no need to elaborate on the implications of such a victory in terms of loss of U.S. prestige and our ability to prevail in the Long War of the 21st century. It is therefore imperative that the U.S. Congress do its utmost to forestall such a setback. [snip]

OPEC, spearheaded by Saudi Arabia, is deliberately keeping oil supply tight to prop up prices. Not only is Saudi production lower today than it was two years ago, despite the increase in demand, but the cartel has effectively deleted 2.4mbd from the global oil market in what amounts to an accounting scam. In 2007, OPEC expanded its member roster to include Ecuador and Angola – together the two had accounted for nearly 2.4mbd of non-OPEC oil. Yet, total OPEC production remained constant, allowing existing members to reduce production. This translates into a net reduction in non-OPEC supply with no equivalent increase in OPEC supply. This is equivalent to the production of Norway disappearing off the market . Further, while non-OPEC production has doubled over the last thirty years, as the graph below shows, OPEC production today is virtually identical to its production thirty years ago, even as the global economy has grown and with it demand for oil. [snip]

The unique strategic importance of oil to the modern economy—beyond that of any other commodity today—stems from the fact that the global economy’s very enabler, the transportation sector, is utterly dependent on it, with 220 million cars and trucks in the United States alone (today, contrary to popular belief, only 2 percent of U.S. electricity is generated from oil, and conversely only about 2 percent of U.S. oil demand is due to electricity generation.) With 97 percent of U.S. transportation energy based on petroleum, oil is the lifeblood of America’s economy. America is poor in oil relative to its need. It consumes one of every four gallons in the world but has barely 3 percent of the world’s proven reserves of conventional oil. The United States now imports over 60 percent of its oil, more than twice the ratio of imports before the 1973–74 Arab oil embargo.

and does she include peak oil in her analysis?

the oil producers have no choice in many respects. their most reliable fields are now depleting, requiring greater pressurization to bring up equivalent production of the same quality pertroleum.

does she address the fact that producers are now industrialized and are themselves consuming a greater percentage of their own production by necessity and, as a result, again by necessity, are managing their policy for their own benefit, while at the same time moving the market forward.

does she address the likely collapse of mexico as a producer over the next ten years, just as the north sea producers collapsed?

or is she purely waving the greasy burka?