*OT* The problem right now is Hugo Chavez in Venezuela. Historically, Venezuela was among the big cheaters in OPEC....they bit on the "prisoners dilemma" every time. Before he came into power 1 1/2 years ago, Venezuela has an explicit policy to produce as much as they could...this made a mockery of any OPEC agreements, and forced the "prisoners dilemma" among other partners in OPEC...
Chavez is unorthodox, but it is hard to argue with his success in keeping the price of oil high..There is a new discipline within OPEC..This bears some watching, for this issue could be with us for years (Chavez just elected to 6 year term)...Cheney, I think, we'll help...because he/Bush WILL push for breaks for domestic drillers, etc....that will cause some concern for OPEC, and hopefully, will make them question their high $ barrel agreement. Unfortunately, however, it may take a near-recession in Europe, and slower growth/usage here to scare them in producing more...this is not your daddy's OPEC...
I don't think alternative fuels will get as much promotion under Bush/Cheney as they would under Gore (no matter where $ price of oil goes)...In fact, I wouldn't expect much at all....I do think we'll see a lot more domestic drilling, breaks for drillers..that's probably a pretty good thing, though...we need to be less reliant on overseas oil-even if it means producing more oil here vs. developing alternative
sources... |
