Tim Worstall explains why the popular idea that it’s demand for the natural gas reserves that sit under Palestine that is driving much of the situation in the Middle East is utter codswallop:
“Oil Platform in the Santa Barbara Channel, California” by Ken Lund is licensed under CC BY-SA 2.0 
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So we’ve a big thing about how all this fighting in Gaza is really about fossil fuels. @JamesMelville seems to think it’s true:
“Everybody wants Gaza’s gas.”
Oil and gas reserves – that’s the real proxy war in the Middle East.
This video provides a really succinct summary of the situation.
This “really succinct” summary includes the idea that the invasion of Iraq was all about access to that country’s oil. Which is very silly indeed. Before the war people paid Iraq for the oil. During the war people paid Iraq for the oil. After the war people are paying Iraq for the oil. The war hasn’t changed Iraq’s oil price — the global oil price has changed it, but not the war — and so the effect of the war upon access to Iraq’s oil has been, well, it’s been zero.
No, it’s not possible to then go off and say that Iraq wouldn’t sell to Americans and that’s why or anything like that. The US didn’t buy much Middle East oil anyway — mainly West African instead. But more than that, this is idiocy about how commodity markets work.
This is something we can test with a more recent example. So, there are sanctions on Russian oil these days over Ukraine. Western Europe, the US, doesn’t buy Russian oil. Russia is still exporting about what it used to. Because it’s a commodity, oil is.
What’s happening is that the Russian oil that used to come to Europe now goes to — say — India. And the Far East, or Middle East, whatever, oil that used to go to India now comes to Europe (the US is now a net exporter itself). Because that’s what happens with commodities. The very name, commodity, means they are substitutable. So, if one particular source cannot sell to one particular user then there’s a bit of a reshuffle. The same oil gets produced, the same oil gets consumed, it’s just the consumption has been moved around a bit and is now by different people. The net effect of sanctions on Russian oil has been, more or less, to increase the profits of those who run oil tankers. Ho Hum.
We’re also treated to the revelation that the US wants everyone to use liquefied natural gas because the US is the big exporter of LNG (well, it’s one). Therefore the US insists that Israel must develop the LNG fields off Gaza. Which is insane. If you’re an exporter you don’t want to start insisting on the start up of your own competition. The US demanding that the LNG not be produced at all would make logical sense but that’s not how conspirazoid ignorance works, is it? It has to be both a conspiracy and also a ludicrous one.
And a third claim. That this natural gas off Gaza is really worth $500 billion. That’s half a trillion dollars. We’ve looked at this value of gas off Gaza claim before and it’s tittery. $4 billion (that’s four billion, not five hundred billion) might be a reasonable claim and that’s just not enough to go to war over.
