7 February 2015

Beating the Petro Dollar

By Col. Robert Spalding, PhD & Dr. Adam Lowther

America’s long and complicated history with the Middle East is the subject of many lengthy books, with most suggesting that the American thirst for oil is what drives our role in the region. While the recent “shale boom” has the price of oil at its lowest in a decade, escaping the global influence of Middle East oil is not so easy. A source of instability since the 1970s, Americans would be unwise to assign the influence of the “petro dollar” to the dust heap of history.

Initially, the Shah of Iran used the profits from his oil wealth to fund a buying spree of American military firepower. When, to their disappointment, American political leaders became convinced that the Shah would continue to push OPEC to maintain high oil prices and support weapons procurement, the Nixon administration aggressively pursued Saudi Arabia as a partner in the region. This decision was not without consequences. Since the early 1980s, Saudi petro dollars have made their way to a number of terror groups and other unsavory nation-states. All the while, global warming has been decried as the next great calamity to befall the planet. Meanwhile, we have forsaken a technology that offers a solution for both global warming and the undue influence of the petro dollar.

Salt-Based Nuclear Reactors

One of the fundamental structural features of the global economy is the oil trade. While the U.S. has reached near self-sufficiency with its advanced fracking technology, oil will eventually run out. Researchers at MIT are currently trying to harness power in a new and safe manner. Instead of using enriched nuclear fuel that could possibly be used to build a bomb, reactors under development at MIT actually burn the nuclear waste from existing nuclear power plants. Imagine being able to eliminate nuclear waste storage in the United States, all while generating electricity – sounds pretty good.

It gets even better. The decommissioned pits of American nuclear weapons could also be down-blended and burned in these same reactors. For those who want to eliminate these nuclear weapons, this technology provides an opportunity to reduce the quantity of weapons-grade material while creating the fuel needed for clean energy.

Reducing some contributors to global warming and providing cheap energy for the United States and underdeveloped nations are just two of the incredible potentials of this technology; our national security gets a boost as well. Undeniably, many of the bad actors in the world are enabled by petro dollars. Russia, Venezuela, Iran and ISIS all rely on oil for significant sources of funding. It has, after all, been widely documented that much of the terrorism associated with the Middle East is funded through petro dollars. Taking away this source of funding would provide a huge security boost for the United States.

The Role of Defense

Unlike other technological advancements that were mainly fueled by government spending, like the Manhattan Project, GPS and smart bombs, this national security revolution is being led by the private sector. Government, however, can play a role in ensuring such a technological leap makes it to market and enjoys wide acceptance.

New forms of nuclear power will inevitably come under attack by those who see all things nuclear as fundamentally bad. Fukushima will be a rallying cry for those who fear nuclear technology, but in this case their voices are not bolstered by facts. Some points to clarify the facts are instructive.

First, salt-based reactors are fail-safe. There is no requirement to shut them down to prevent a meltdown. In the event of a natural disaster they stop producing energy. Nuclear material cannot escape into the atmosphere. Most importantly, since they are efficient, the nuclear waste produced is miniscule compared to water-based reactors like Fukushima.

Since this may not be enough to convince some critics, why not continue by using the new technology to power more remote Department of Defense (DoD) facilities. DoD already has developed technology and processes to ensure the safety, security and reliability of nuclear weapons. Doing the same for these new reactors would go a long way toward making them more palatable for those on the fence.

While cheap and plentiful nuclear power will not require the type of funding that created the Manhattan Project or the B-2 stealth bomber, it will require some funding. Powering DoD facilities with salt-based nuclear power would provide a funding boost for this technology just like the Navy nuclear power program did for water-based reactors. This time, however, DoD does not have to lead the effort, just harness the work and investment already begun by private enterprise. While seemingly new, allowing DoD to take advantage of a civilian-led technological development model actually represents current trends around the world.

Conclusion

With the potential to free the United States from its dependency on Middle Eastern oil and reduce the dependency of our allies, the United States should pursue a technology that can make that happen. Not only would such a technology have a geostrategic impact, but it would also have a positive impact on the environment. More important is the simple fact that DoD no longer leads the nation in technological development. Accepting this new reality, here and in other areas, will ensure that DoD is not left behind by the private sector. It will also enable DoD to collaborate with the private sector as it attempts to bring to market promising technologies with a significant impact on national security.

Col. Robert Spalding, PhD is a B-2 pilot and former military fellow at the Council on Foreign Relations.

Dr. Adam Lowther is a Research Professor at the Air Force Research Institute.

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