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Category: Investment, Natural Gas
Military strike on Iran Imminent
By Senior Energy Industry Executive Karl W. Miller
February 19, 2010
Energy Commentary from Karl Miller - Read Bio and More info
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February 19, 2010 (Investorideas.com Energy Newswire) - Mr. Miller is on medical leave but has been following the Iran Nuclear situation closely and its potential effect on the U.S. Energy market.
Based upon Mr. Miller's analysis, a Military strike on Iran Imminent. These are difficult times, and decisions must be made that the entire world wishes did not exist.
US (Obama Administration) is putting Israel in an untenable position. Israel will not allow Iran to complete a nuclear warhead and preparing to take military action to remove the Nuclear threat in Iran. There is potential for U.S. Military action, but intelligence and experience suggest Israel will go it alone to prevent military escalation outside of Iran. Israel has ample tactical nuclear weapons to take out the underground nuclear labs in Iran.
The Sunni Arab Countries all fear Iran obtaining a nuclear warhead and the capabilities it brings. It is ironic that if asked to allow access to their airspace, it will be granted to Israel and US military forces, unofficially.
Additionally. Russia has conceded that the US has already prepared to strike Iran on its own, if necessary, and that the strike would be successful if launched. Their position is that the US should stay out of the military action, leaving Israel to act alone. Mr. Miller does not concur with this and believes the US should assist Israel to insure complete success in destruction of Iran's nuclear facilities.
The Oil Companies have been warned of potential strike on Iran through US political channels for weeks now and tanker shipping in straights of Hormuz is being slowly diverted. US Military presence in the area is already at heightened alert status due to existing terror threats. The Gulf States are on high alert and tensions are very high in the oil markets.
How the energy and global markets will react is a unknown. However, Mr. Miller has no doubt that energy prices will rise across the board in all energy commodities due to security of supply concerns and pure fear of the unknown. We have a rogue dictatorship that is not stopping the development of nuclear arms.
The U.S has ample crude in the Strategic Petroleum Reserves to continue feeding U.S. Refineries for a period of time and there are significant physical cargo's of crude in tankers offshore.
However, Mr. Miller believes that the floating cargo's will quickly be sold to China and Japan, which would be the highest bidders and the most vulnerable to supply interruptions from the middle east, should Iran's nuclear facilities be attacked.
After that, all bets are off and Mr. Miller can't provide any guidance regarding supplies of crude to the US other than sour crude from a volatile Venezuela, Canada Oil Sands production, and the small amount from Prudhoe Bay to California and California domestic production of ~500,000 bbls day.
Mr. Miller has recently joined Investor Ideas as a regular contributor for the energy sector. Investors can follow Mr. Miller at:
Karl Miller Energy Commentary, Bio and Disclaimer:
http://www.naturalgasstocks.com/Karl_Miller/
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Energy Investors can research energy stocks with the natural gas stocks directory: http://www.investorideas.com/Companies/NaturalGas/Stock_List.asp
Mr. Miller is currently on Medical Leave.
Disclaimer:
This column, Energy Commentary from Karl Miller, is the opinion of Karl Miller.
Content found in the articles is subject to the terms found in the InvestorIdeas.com disclaimer and does not represent a recommendation of investment advice. Investors should seek the advice of a qualified investment professional prior to making any investment decisions.
U.S. Utilities and Natural Gas producers are the best "Safe Haven" after U.S. Treasuries Plus You Collect a Dividend, Not Zero Percent Interest Rate" at the following link: http://www.naturalgasstocks.com/Karl_Miller/news/2046.asp
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