Joe Francica:

A Summary of Remarks by Former CIA Director Jim Woolsey at the GEOINT Symposium

At the GEOINT Symposium in Nashville, Tennessee, former director of the Central Intelligence Agency (CIA) Jim Woolsey gave a chilling account of the implications for national security related to the United States’ dependence on foreign oil. He described the vulnerabilities of a resource located far from our shores, highlighting how consumer habits could have dramatic geopolitical consequences. He then offered a solution to the crisis by suggesting a way to remove oil as a strategic commodity.

Woolsey’s assessment of the problem is similar to what we have heard from T. Boone Pickens, the oil businessman-turned wind power advocate. We spend in the range of $350 – $700 billion per year for oil, depending on the price per barrel. The reality is that the U.S. and other oil importers like China and India are engaging in the biggest transfer of wealth in history. The result is that the U.S. is either directly or indirectly providing funds to support countries that may not have our best interests at heart. “Oil tends to be produced by countries that are either run by autocrats or dictators. (One exception: Norway). So, one of the things we are doing with this money is contributing to the support of dictators. Putin [Russia] and Chavez [Venezuela] are a bit quieter with oil at $65 per barrel,” said Woolsey. “[However], a national energy policy that depends on oil is probably one of the stupider policies ever done. Even at $65 per barrel, we still have one of the biggest transfers of wealth the world has ever seen.”