The Real Price of Middle Eastern Oil

American gasoline is cheap at the pump because consumers pay only for the oil, refining, and transportation to market -- plus tax.   What we don't calculate is what the United States spends to defend the oil in the ground or the sea lanes that allow it to be shipped from the Middle East.  We don't calculate the perversion of American principles as we coddle dictators to ensure they don't turn off the taps.  Factoring those in makes the use of imported oil for transportation fuel much more expensive and distasteful.    The Middle East accounts for about 30% of the world's oil supply (North Africa, mainly Libya and Algeria, is another 6%), with 20% of the supply passing through the Strait of Hormuz.  The U.S. is the primary defender of the sea lanes, beginning with the Strait and extending through the Indian Ocean and the Pacific.  Along this route, oil is delivered to India, Japan, China, and South Korea, among others.  It is an...(Read Full Article)