Here is the latest from the head of OPEC - the gentleman from South America :
cnn.com;
Oil prices this high are damaging to the OPECer's cause because they encourage alternate energy sources and novel oil extraction methods. Some in OPEC, particularly the Saudis who having the largest and longest lasting reserves have the most to lose if the world moves away from oil, realize this.
What happens to oil producers when, not if because it will eventually happen, new cars are alternative-fuel based? In Arizona right now you can buy hybrid-fuel (burns either gasoline or natural gas based on a selector switch) vehicles. They're currently available from the factory only in large models (Suburbans, Expeditions, and F-150s) because of the space the natural gas fuel tank takes but in future models I image that the gasoline tank will be diminished, serving only as an emergency tank, and the space concerns may change. I understand they currently cost about $10,000 more than a gasoline-only model (mass production will bring that down, of course) but after an AZ Tax Credit they are 50% of the gasoline vehicle's price, PLUS after paying a one-time $40 registration fee there will never be another registration fee (instead of about $350 for the first year and declining after that) AND you have 24-hour access to any High Occupancy Vehicle/Alternative Fuel lanes. A co-worker was already in the market for an F-150, and now they're going to get a hybrid-fuel one for about $12,000 after the tax credit. At least three other people that I know here at work (not including the couple or so thousand that I don't) are buying hybrid-fuel vehicles in this program. The $10,000 home refueling kit, if you happen to use natural gas for heating, is "practically free" after a tax credit, too. If I needed a new vehicle I'd be jumping in on this program.
OPEC's days in the sun are numbered and the current price of oil will merely serve to hasten the move away from the stupid practice of burning something as useful as oil for fuel. (The Fuel Oil Burners in the New England area, the only place in the US where Fuel Oil is used, should really, really, should consider upgrading their heating systems.)
From the story link above:
Saudi Arabia 'ready' to open taps
Saudi Crown Prince Abdullah Bin Abdulaziz al Sharqui agreed with Chavez's goals, but said they must be pursued through a "profound dialogue" of "comprehension and mutual interests" among rich and poor nations.
Stabilizing oil markets is key, the prince said, adding that Saudi Arabia -- the globe's biggest oil producer, and one of the few OPEC members with enough capacity to boost production -- "is ready to offer whatever is necessary to stabilize oil prices."
OPEC representatives are attending a summit in Venezuela
Prices that are too low harm producer nations, the prince said, and those that are too high threaten the global economy. "Consumer governments must also participate in this sacrifice," he said. |
