Production to increase
There's hope that gasoline prices may at least level off and may even reduce some starting next month.
That's because UN Secretary-General Ban Ki-moon has convinced the Saudis to increase oil production in July.
The Saudis recently also said that they are looking into the high crude oil prices under which the world is now suffering.
They fear that people may reduce oil consumption because of the high prices hurting the oil business in the long run. Saudi Arabia is the world's largest producer of oil.
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Photo credit: http://www.flickr.com/photos/london/455823587/
6 comments:
The fact that the Saudis can impact the world so drastically demonstrates more than ever how we, and the rest of the world, are at the mercy of that government.
Let us not take a sigh of relief because the Saudis decide, perhaps out of fear of conquest, to produce more oil. We already know that what is paid at the gas pump determines what is paid at the supermarket. I can lower my consumption of gas but I prefer to diet voluntarily.
THIS is the time when the experts who deal in energy MUST develop alternate fuel sources. I've heard that certain types of algae work just like oil and are renewable as well. Brazil uses sugar cane and Japan and Germany have affixed solar panels to many of their buildings.
What can possibly be holding up the American quest for this freedom from want(Bush, Cheney and other oil magnates)?
Sylvia_Lovejoy
Ever try running a jet airliner on solar panels? Not gonna happen ever. Our world economy will continue to require liquid fossil fuels, particularly for the transportation sector, for many decades hence. We can lower gasoline prices if we utilize the abundant domestic oil, shale oil, clean coal-based fuel technologies, and biofuels within our mostly existing distribution and transportation technologies. Simply changing EPA unleaded gasoline blend regulations to reduce the large number of boutique blends would allow market forces to lower gasoline prices. Allowing construction of new, more energy efficient oil refineries would also reduce pump prices, improve effiiency and reduce pollution. Nuclear Energy development could also augment our current energy supplies for centuries. It is a pity that Congressional Democrats have blocked most of these energy solutions.
Saudi boosting oil output didn't cause oil speculator's to blink much today. It probably won't make much of a difference. Until the dollar regains what has been lost over the past few years (if it even can) and until speculators aren't allowed to run for cover in the commodities market to the detriment of the world's consumers...nothing will change.
-Jeremias X
Don Castella, did you see that SEVERAL alternative fuel methods were mentioned in my original response, beside solar panels???
I was remiss in not mentioning Nuclear fuel. There are many others as well but I am not an energy engineer as you appear to be. I leave the method to the experts.
Sylvia_Lovejoy
I guess it's a big deal when the Saudis announce a half-million BBL/Day production increase, but it's a non-story when Congressional Democrats vote for outrageous taxes that will directly cause higher energy prices and repeatedly vote to restrict domestic energy development that would lower energy prices.
We've seen so-called windfall profits taxes and energy price controls before. I remember the millions of autos sitting idling wasting gas and time in long gas lines as people waited to get a little high-priced, heavily-taxed gas. The only rational conclusion to that debacle was to let the market work and stop government meddling.
Yes, we should just have let the market work and let Bear Stearns go down the tubes without the Federal Reserve of New York TRYING to save them.
I get it now. Only Laissez faire for the poor.
Sylvia_Lovejoy
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