Opinion: U.S. could learn from Big Oil

You probably missed it … page 6 in The Wall Street Journal.

Recently, Saudi Arabia arrested 172 Islamic militants who were in the final stages of launching a 9/11-style attack on Saudi oil installations. The Saudi Interior Ministry spokesman, Brig. Gen. Mansour al-Turki, told The Associated Press, “They had the personnel, the money and the arms.”

So what’s the big deal? Nothing blew up!

If you think it was a nonevent, check out the price of gasoline. Prices immediately spiked by 2.2 percent and have continued to climb. It seems fear is a good reason to add digits to gasoline prices.

Economic jugular

Terrorists have figured out that the best way to bring this nation to its knees is to rip out our economic, oil-pumping jugular.

In 2004, a set of very sophisticated plans was executed against refineries in Nigeria, Venezuela and Saudi Arabia. None of these attacks has been catastrophic, but no one has to hit us between the eyes with a 36-inch pipeline to know al-Qaida is not giving up on its strategic plan.

From a recent article in the al-Qaida monthly, the Voice of Jihad: “The targeting of oil facilities is a legitimate means of economic jihad.” The most profound reason for blowing up oil facilities, the story went on, “is the damage to America’s economic reputation.”

So, let’s assume there is a resolute enemy out there who has figured out the greatest damage to the United States would be to dry up our oil shipments. What are we doing about it?

Now, you are probably getting ready for some hand-holding, tree-hugging diatribe on the virtues of riding your bike to work and – turning off the lights.

Well, how about starting with the truth that terrorism, not depleted wells, is the greatest threat to our oil-soaked society?

Let’s move from that to the truth that corn ethanol (from present acreage) can only supply about 10 percent of our present gasoline needs, according to Vinod Khosia, co-founder of Sun Microsystems and presently a biomass expert.

And the truth that when gasoline hits $5 or $6 per gallon this present stable economy will wobble out of control.

Three-pronged strategy

We need three specific events to take place in order to pull the plug on any terrorist threat.

First, we must elect in 2008 a president who has a sensible, honest plan to make this nation’s energy independent. Since Richard Nixon’s 1974 State of the Union speech, we have had a series of “war plans” to cut the ties to foreign oil. The facts belie the lie we have been told.

We have gone from 35 percent of total consumed oil originating from foreign countries to 60 percent today. You can’t tell me that we have enjoyed a vibrant economy and the petroleum’s debarkation address really does not matter.

We have lived from opening to closing bell on Wall Street by pressing the easy button. We need a president who will stop declaring war on our “addiction to foreign oil” and drag us into a treatment program.

Second, we need to be honest about capitalism. Businesses keep the front door open by consistently generating a return on investment for shareholders.

Whether it is switchgrass, woodchips, municipal sewage, orange peels or cow emissions, no one is going to get financially excited unless there is a profit motive. This economy and government has to encourage entrepreneurs with the cash carrot.

Third, we need to call the CEO of Exxon Mobil Corp.

Exxon’s first-quarter 2007 profit was $9.28 billion, 10 percent higher than the same quarter in 2006 when Exxon distributed $32.6 billion to shareholders, up 41 percent from 2005.

In spite of our collective disgust regarding profits of oil companies at our expense at the pump, they are doing something very right. What they do right is long-term strategic planning.

Our government needs to attend one of their seminars.

Cal LeMon of Executive Enrichment Inc. solves organizational problems with customized training and consulting. He can be reached at execenrichment@aol.com.[[In-content Ad]]