Kissinger throws cold water on Mideast optimism

oil prices, henry kissinger, middle east, democracy, revolutionAddressing energy industry leaders meeting in Houston, the former Secretary of State says a transition to democracy is far from guaranteed. By Steve Hargreaves, senior writer


HOUSTON (CNNMoney) -- Former Secretary of State Henry Kissinger delivered a sobering analysis on the unrest sweeping across the Middle East Thursday, telling leading energy industry experts that the recent protests may not pan out as smoothly as some hope.

Speaking at IHS's CERA's annual energy conference, Kissinger said most media reports have indicated the Mideast protests should result in a relative peaceful transition to more democratic regimes.

Most experts speaking at the conference this week have said that while turmoil and change may come to the Middle East, the end result should be positive for the whole region and that oil supplies should remain stable.

While Kissinger made no prediction on the fate of Middle East oil, he threw cold water on the idea that the transition of power in the region would lead to a new era of democracy there.

"That's wishful thinking," said Kissinger, who as secretary of state in 1973 helped end the war between Israel, Egypt and Syria and largely shaped the current political makeup of the Middle East. "There's evidence of rejection of the previous model, but no evidence of what the new model will be."

Kissinger also said that "the ability of the United States to achieve its security concerns in the short term is now more problematic."

He said what the United States needs is a clear analysis of the situation and well defined objectives in the region.

Turmoil in the Middle East has rocked oil markets over the last several weeks, with the price of crude surging some 10% over fears the unrest in Libya, Tunisia, Bahrain and other places will spread to the oil producing states of the Persian Gulf, particularly Saudi Arabia.

Protests dubbed the "day of rage," are planned in Saudi Arabia for Friday. Authorities in the desert kingdom have deemed them illegal and threatened to quash them by force.

Saudi Arabia vies with Russia as the world's largest oil exporter, supplying over 7 million barrels a day of crude. The broader region produces nearly a third of the world's 87 million barrels a day. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.75%3.66%
15 yr fixed2.89%2.79%
5/1 ARM2.66%2.59%
30 yr refi3.74%3.64%
15 yr refi2.89%2.79%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 15,303.10 8.60 0.06%
Nasdaq 3,459.14 -0.28 -0.01%
S&P 500 1,649.60 -0.91 -0.06%
Treasuries 2.01 -0.01 -0.59%
Data as of 10:42pm ET
Company Price Change % Change
Bank of America Corp... 13.24 0.03 0.23%
General Electric Co 23.53 -0.13 -0.55%
Pfizer Inc 29.04 -0.07 -0.24%
Microsoft Corp 34.27 0.12 0.35%
Intel Corp 23.92 -0.13 -0.53%
Data as of May 24
Sponsors

Sections

The fuss over Apple's complex strategies to avoid taxes put the corporate tax code on display in all its convoluted glory this week. More

The 79 tornadoes that hit over three days in 10 states caused billions in losses, with most of damage concentrated in Moore, Oklahoma. More

Vermont, a patent-rich state, is cracking down on so-called "patent trolling," a growing problem for entrepreneurs nationwide. More

New residents are flocking to these 10 cities, which added the largest number of people between July 2011 and July 2012, according to Census Bureau. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2013 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2013 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2013. All rights reserved. Most stock quote data provided by BATS.