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Another proposal popular in the Congress is to suspend additions to the strategic petroleum reserve, a move opposed by the administration. One senator even claims a veto-proof majority for this measure.

Throughout this furor, proposals that might do some good are few and far between. The trucking industry, realizing they have a big problem, is pushing for a national 65 mph speed limit for all vehicles. The Rockefeller family is pushing Exxon to acknowledge global warming and get moving on alternative fuels. Climate change legislation that would significantly reduce greenhouse gases is headed to a debate in the Senate. The EIA weighed in on this by pointing out that a widespread switch to nuclear power and carbon sequestration is still years away so that electric utilities would be forced into increased use of expensive natural gas leading to increased prices.

Amidst the jockeying for political advantage, no one, with the possible exception of the truckers, is willing to recognize that a massive conservation program is the only short-term way to keep gasoline prices from climbing to un-affordability. Even corn-based ethanol has become such a sacred cow that the Administration and Congress seem unwilling to tackle the problem until after the fall elections.

3. Nigeria

Despite the end of last week’s oil workers strike against Exxon which shut-in 860,000 b/d, Nigeria’s problems are a long ways from being over. Exxon announced that 300,000 b/d is now restored, but that it may take a while to resume full production.

Attacks on Nigerian oil infrastructure by the Movement for the Emancipation of the Niger Delta (MEND) continued last week as the government announced it would try in secret one of the movement’s leaders who is facing the death penalty.

The amount of Shell’s production shut-in by recent attacks is still unknown. Shell has declared force majeure on 167,000 b/d and has announced that an additional quantity has been shut-in. The MEND continues to claim that the total shut-in is now closer to 500,000 b/d and that the government will not let Shell reveal the actual situation.

Nigeria’s electricity problems continue. In recent months the power plants remaining in operation have been producing about 3,000 megawatts, but last week the Energy Minister announced that this was down to 2,130 megawatts. On Friday a system failure blacked out the entire country for three hours.

The confrontation between the government and militants has taken a turn for the worse in recent weeks. The government seems bent on trying MEND’s leader and the MEND has launched "Operation Cyclone" with the objective of halting all Nigerian oil production. The MEND have a reasonable track record in carrying out their threats, so unless the government changes policy soon, the chances for reduced oil output from Nigeria in the near future seem pretty good.

4. Iraq

Higher exports and oil prices have been bringing record oil revenue to Iraq, possibly as much as $70 billion this year. As most political factions in Iraq have found a way to share in the revenue, either legally or illegally, there is little incentive to change the status quo. The Iraqis claim that in April exports through the northern pipeline climbed to 430,000 b/d.