America is the number 3 oil producer in the world, producing 8.5 million barrels per day. Iran produces less than half of that amount (4.2 million). Saudi Arabia tops the list at 10.8 million. Of course, Americans also consume 19.5 million barrels per day-- much more than anybody else does.

Foreign Policy has a great new photo journal on the lithium-filled salt flats of Bolivia.

In case you missed our last post on the subject, Bolivia is estimated to have over half of the world's lithium deposits. Lithium batteries power most new hi-tech gadgets, including the laptop which I'm using to write this post. Demand for lithium is expected to skyrocket in the future as the West begins using lithium battery-powered electric cars.

Bolivia has long been famous for its natural resources. The silver mine at Potosi, discovered by the Spanish in the 14th century, is the biggest in the world. Bolivia also boasts huge reserves of other minerals, oil, and natural gas.

But despite its rich resources, Bolivia is the poorest country in Latin America. Its socialist president, Evo Morales, is determined to keep out foreign companies and thereby ensure that Bolivia's natural wealth goes into the pockets of native Bolivians (or so he says).        

If Bolivia wants to become the "Saudi Arabia of lithium" it will need to cooperate with its neighbors to access ports. Bolivia has been landlocked since losing its coastline to Chile in the obscure War of the Pacific (1879-84).

In addition to Bolivia, Chile and Tibet also have large lithium reserves. The growth of demand for lithium is a development to keep an eye on in the next decade, and is illustrative of another point-- efforts by the West to wean itself off of oil will not likely end its dependence on other countries for natural resources.

Lithium-ion batteries, because of their high energy density, are the batteries of choice for most new high-tech devices: cell phones, laptops, etc.

But if the world begins mass-producing electric cars, Lithium demand will skyrocket, offering windfall profits for countries who have large supplies of the element. The amount of lithium needed to run a car dwarfs the amount needed to power a laptop.

Bolivia claims to have nearly half of the world's known lithium reserves. Tibet also has large reserves. If lithium continues to be the element of choice for making car batteries, then keep an eye on this commodity, because it will have increasingly important geopolitical implications.

That is the percentage of total U.S. crude oil imports that came from the Middle East in June 2009, the last month for which data is available.

One of the biggest and most prevalent myths out there is that the U.S. imports most of its oil from the Middle East. This is the fountainhead for a thousand conspiracy theories centered on America's thirst for Islamic oil.

Yes, the oil market is sufficiently tight that major disruptions in the Middle East can have huge effects on world oil prices, and thus have significant effects on the American economy. But the U.S. gets most of its oil from its Western Hemisphere neighbors: Canada, Venezuela, and Mexico provide for over half of U.S. crude oil imports.

Expect this figure to rise as Brazil's begins tapping its vast offshore deposits.  And although American reserves are in decline, the U.S. is still the third largest oil producer in the world, supplying 1/4 of domestic oil consumption.

Nothing heals like extra heavy Azeri crude. So says spa owner Alif Zulfugar: “Naftalan (oil) is too heavy for the industry,” Zulfugar explains, “it is used only for healing purposes. It is untreated and comes directly from the source into our tankers and then into our basins.”

And surprisingly, it isn't that expensive. A full 10-day treatment cycle only costs $420. Talk about the advantages of $70 a barrel oil. CSM has a full review here.