Saudis Discourage Development of Alternative Energy Sources
According to this article by the New York Times’ Jad Mouawad, the Saudis are fighting the efforts of other OPEC members to raise oil prices from the recent $50 a barrel back to the peak $77 a barrel. The Saudi Oil Minister, Ali al-Naimi, recently announced that “Saudi Arabia's policy was to maintain ‘moderate (oil) prices’.”
In his article, Mouawad comments that the Saudis want lower energy prices because they realize that high energy prices are bad for the world economy:
The Saudis appear to be relearning the fact that painfully high energy prices take a profound toll on the global economy, which reduces demand for oil.Then he speculates that the Saudis are taking action to curb Iran’s growing belligerence and ambition in the Middle East.
Although Saudi officials say their oil policy is based on market considerations and not political ones, the November meeting (with Vice President Dick Cheney) led to renewed speculation that the kingdom might be tempted to dry out Iran's ambitions by pushing oil prices down.But I think the true reason is that the Saudis know that the United States has the technical capability to develop alternate energy sources that will no longer require the world to kowtow to the Middle East:
As I’ve mentioned before, I’d love to have $100 a barrel oil. This would force us to develop alternate energy sources and dry up the funding for Middle Eastern madmen. But the Saudis are smart. They know that high oil prices are killing the goose that laid the golden Ferrari.But 2006 was not the first reminder for the Saudis that too-high prices can backfire. The oil shocks of the 1970s and '80s also set off a scramble for gas-sipping cars and a brief push to wean the West from its oil dependency.
In recent months, the higher prices have rekindled America's quest for alternatives and propelled energy security to the top of the agenda in the United States and Europe.
Even Bush, who began his presidency seeking to increase domestic oil production, called for cuts in gasoline consumption over the next decade in last week's State of the Union address.
C’mon. Let’s have $100 a barrel oil; $200 a barrel oil. Like I said in my April post:
The original post can be found at:Our technological innovation is gaining momentum. Soon, it will reach juggernaut status and nothing will stop development of fantastic, environmentally safe, and American energy sources.
So say it loud and say it proud:
Thank God for high oil prices! May they keep going higher!
http://thephantomrepublican.blogspot.com/2007/01/saudis-discourage-development-of.html