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HOW AMERICA BECAME FOREIGN OIL DEPENDENT & WHY IT STAYS THAT WAY

The United States agreed to transfer jobs and technology to developing countries under
INTERNATIONAL AGREEMENT
Algiers Declaration
Algiers, Algeria, 4-6 March 1975

In this context, they emphasize the necessity for the full implementation of the Programme of Action adopted by the United Nations General Assembly at its VI Special Session, and accordingly they emphasize the following requirements [excerpt from full declaration]

"With regard to the depletable natural resources, as OPEC’s petroleum resources are, it is essential that the transfer of technology must be commensurate in speed and volume with the rate of their depletion, which is being accelerated for the benefit and growth of the economies of the developed countries"

A major portion of the planned or new petrochemical complexes, oil refineries and fertilizer plants be built in the territories of OPEC Member Countries with the co-operation of industrialized nations for export purposes to the developed countries with guaranteed access for such products to the markets of these countries. [Excerpt from declaration] Read sections 10 and 11]
FOREIGN TAX CREDITS
In 1977 Representative Benjamin Rosenthal of New York produced secret Internal Revenue Service documents going back to 1950. They showed that the tax laws of Saudi Arabia were drafted with the help of Aramco to call the added price of oil not a "royalty" or "cost of doing business," as was proper, but an income tax." The Saudis did this knowing that income tax paid to a foreign country is deductible from the income taxes an oil company pays the United States on all income received in the United States by the parent firm. From Pgs. 61-64 The Media Monopoly by Ben H. Bagdikian 5th edition paperback color emphasis added

"This plan was approved in secret session of the National Security Council and carried out without any request for authorization by Congress. A quarter of a century later, when members of the Senate Foreign Relations Committee un-earthed details, the source of the king's added income had become too self-evident for comment." From pgs. 193-196 Oil Power The Rise and Fall of An American Empire by Carl Solberg 1976 paperback

"Essential to the deal was a renegotiation of Aramco's royalties, most of which were now called taxes. These were increased to a level equal to half the company's expected profits for the year. The amount of the rise just happened to equal the income taxes the company had been paying to the U.S. Treasury. Thus, by a transfer to the Saudis of a sum that would henceforth have to be made up to the U.S. government by its taxpayers, the 12. progressive fitly-fifty profit-split plan was introduced to the Eastern Hemisphere, and the lord of the world's richest oil pools was bound over to the United States as never before: the Saudi monarchy became outspoken in its anticommunism." From pgs. 193-196 Oil Power The Rise and Fall of An American Empire by Carl Solberg 1976 paperback

"This practice, perfected in Saudi Arabia, was quickly adopted elsewhere. Eventually, every oil-producing nation where American companies had a concession enacted an income tax law to increase its oil revenue by tapping the foreign tax credit provision of the U.S. Internal Revenue Code." From pgs. 183-190 America: Who Really Pays The Taxes by Donald L.Barlett & James B. Steele paperback

"Since that time the major multinational U.S. oil companies have paid hardly a penny of U.S. income tax on their foreign income." page130 BANKS. BORROWERS, AND THE ESTABLISHMENT

Excepts from Aramco's Stormy Petrol
Monday, Dec. 24, 1979
http://www.time.com/time/magazine/article/0,9171,947130-1,00.html

In their middleman role, Aramco's American chiefs plainly have divided loyalties. From Chairman John J. Kelberer, a career-long Aramco engineering manager, on down, executives remain determined to do nothing that would anger their Saudi hosts or jeopardize the company's concession. During the 1973-74 Arab oil embargo, Aramco's executives not only did as they were told by the Saudi government, but cut back production by more than requested just to show that they were good Saudi corporate citizens.
SO CONSUMERS WILL ULTIMATELY PAY MORE

REFINERIES IN AMERICA OPERATING AT 85% CAPACITY
Excerpt from Senator Dick Durbin of Illinois floor statementhttp://durbin.senate.gov/showRelease.cfm?releaseId=296989 below:

That is fact. The oil companies say: Well, the problem is we do not have enough refineries. If we had more, then we would have more product and we might have a smaller spread and we would not be. Let me tell you what: Today, the refineries in America are operating at 85 percent of capacity. Do not buy this argument that it is about refineries. They have more capacity. They are holding back so they can keep their product dear and limited and short, and so the consumers will ultimately pay more.

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Demand $2 a Gallon Gas

Oil hit a new high of $120 a barrel on May 5, 2008.


The cost of making a barrel of synthetic fuel from coal is estimated to be around $55, including the sizeable infrastructure investments and the labor force necessary to operate the plant.


Petroleum poor Germany fueled WWII with synfuel from coal. It is proven technology.


America is the Saudi Arabia of coal with 1/3rd of the deposits on planet. We can eliminate dependence on foreign oil.
Reducing America’s trade imbalance, keeps money, technology and jobs here in America.


It is estimated that every billion in trade deficit equals 13,000 American jobs lost. $400 billion for oil last year: do the math.


And we can quit sending those billions to countrys that sponsor terrorism.


Synfuels are cleaner burning than gasoline and carbon sequestration can remove the CO2 hot house gases.


Visit http://governor.mt.gov/hottopics/faqsynthetic.asp


Ethanol from corn is a windfall for farmers but is it good for motorists.


After 4 months Congress is already rethinking. Unintended consequences include higher food costs for wheat, chicken, beef, pork, less grain for export, reduced gas mileage and incompatibility with older cars.


Harness your anger at the pump. Call or write your US Senators and demand a Manhattan Project to create an American synfuel industry within the decade.


If you don’t raise your voice the international companies, lobbyist and politicians will assume you are fat dumb and happy and ready to pay even more.


Call you're US Senators and demand they break ground on America's energy independence.

Kentucky is breaking ground on two synfuel plants within 90 days.

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