By Rodney Ross (Special To The Carolinian)
The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Since inception, additional Arab countries such as Libya, United Arab Emirates, Algeria, Nigeria,and non Arab countries such as Gabon; Equatorial Guinea , and Congo have joined OPEC. The United States has had various conflicts in that Arab region such as Libya, Kuwait, Iraq, and Iran.
The focus on Iran is not new. For decades the United States placed strict embargos on Iran in attempts to limit their nuclear capabilities. In spite of strong recommendations to maintain the sanctions that were in place, then president Barack Obama lifted those barriers in what was considered a diplomatic achievement by giving Iran billions of dollars in sanctions relief in exchange for curbs on its nuclear program. On January 16, 2016, the International Atomic Energy Agency verified that Iran has completed the necessary steps under the Iran deal that will ensured Iran’s nuclear program is and remained exclusively peaceful. However, the Trump administration restored the U.S. sanctions in 2018 with supposed intel that suggested that Iran was not upholding the commitments.
As sanctions continued to stiffen under the current Biden administration, the United States has launched several initiatives to disrupt Iran’s economy in an attempt to thwart a potential opportunity for Russia to acquire arms and munitions from Iran. The question that has to be asked is how Iran is making money or acquiring the resources needed to create anything when it is not allowed to export or import due to the embargoes placed on them. What many Americans may not have realized was that Iran is reported as being the third largest producer of oil in OPEC. In short, no matter what supposed sanctions were applied to Iran, the United States and the rest of the world still pays Iran for their oil export.
With the escalation of the conflicts in Jerusalem, and America refusing to call out the war crimes on both sides, it is assumed that we should expect gas prices to reach heights never imagined. Typically gas prices cool off during an election year, to promote the idea the economy is well and people are thriving. But, the latest tensions in the Middle East and potential disruption of oil production, coupled with the politics of choosing sides, may cause sticker shock at the pump as we embark on the vacation travel season.
The end game could come as an opportunity to leverage the high gas prices to influence people to ditch their gas guzzlers for electric vehicles (EV’s). However some are still reluctant to make the transition because of concerns that have not been addressed. Some people do not want to be tracked by satellite. Modern cars are equipped with GPS, and although they are not breaking any laws, the idea of every where they go, how long it took them to travel and what speed they were driving is invasive and threatens privacy. The argument against this is that people keep cellular phones on them at all times, and phones like the modern iPhone never turns off. There seems to be no way to avoid being tracked.
Another potential hurdle consumers face is the ongoing spread of subscription driven services. For certain features that you want on a vehicle, you would now be required to pay indefinitely for them and never own them flat out. Could you imagine having to pay a subscription charge for air conditioning in the South?
Other aspects of the subscription model is similar to leases, with the exception that you can terminate you subscription to use the vehicle at anytime. For fleet services this may work, but for the person who wants to own their vehicle flat out, that model wont work.
If gas prices skyrocket, that change may be inevitable. On March 20, 2024 the U.S. Environmental Protection Agency announced final national pollution standards for passenger cars, light-duty trucks, and medium-duty vehicles for model years 2027 through 2032 and beyond. The U.S. government plans to end purchases of gas-powered vehicles by 2035 in a move to lower emissions and promote electric cars under an executive order signed by President Joe Biden in 2021. How Iran is handled and the potential escalation in gas prices may drive us one step closer to the EV endgame.