As in everything, the key is economics. Just as the USA could swing the world oil price up or down in the 1940's and 1950's, today the Saudi's have the same relative position.
the Saudi's have the same relative position
But only because we allow them to. The $5 to $8 billion investment to develop the Alberta reserves is chump change. With but the minimum incentives on the part of the already wildly manipluated tax code it'd be no big deal to make Suadi Arabia once again as irrelevant as it shurely deserves to be.
This, however, presupposes the neutralization of the enviromental Nazis.
posted on 01/30/2005 8:39:07 AM PST
by An Old Marine
(Freedom isn't Free)
To: Woodworker; RightWhale
posted on 01/30/2005 8:44:20 AM PST
by Willie Green
(Go Pat Go!!!)
As in everything, the key is economics.
This article does a good job pointing out that the key to understanding the market price of oil is political.
posted on 01/30/2005 8:58:52 AM PST
Demand for oil grows daily in China and India, where good government is finally taking root, while much of the earth's most accessible oil lies under land controlled by feudal theocracies, kleptocrats, and fanatics.
China is a wildcard
posted on 01/30/2005 9:07:10 AM PST
posted on 01/30/2005 9:08:42 AM PST
by William Terrell
(Individuals can exist without government but government can't exist without individuals.)
The only reason oil is $50 a barrel is the futures market being manipulated by the left-wing super rich in their desire to hurt the American people.
posted on 01/30/2005 9:12:14 AM PST
Good article here that counters some of the extremely hawkish books that predict "$100 per barrel oil within ten to twenty years." It does, however, look like demand growth is going to soak up essentially all of Saudis' excess production capacity within 3-5 years. After that nobody will have the ability to boost production enough to collapse market pricing. So investments made today in production of oil from tar sands are going to pay off and I think you'll see more investment in that area and in conventional oil drilling.
There's also a lot of potential to increase energy efficiency in the transportation sector. Energy was cheap all through the 90's so there wasn't much effort made to make cars, trucks and buses more efficient. But that's all changing very rapidly. I was reading about this Dutch company that has revolutionized electric motor drive and produces these very quiet and efficient electric buses. Look for those buses to go into use for short hauls at ski resorts and college campuses and then move into the mainstream. Hybrid engines are coming on fast in the auto industry too with 40% gains in mileage.
posted on 01/30/2005 10:46:39 AM PST
(At half past midnight, the ghost of Vince Foster wanders through the West Wing.)
To: Woodworker; abbi_normal_2; Ace2U; adam_az; Alamo-Girl; Alas; alfons; alphadog; AMDG&BVMH; amom; ...
Rights, farms, environment ping.
Let me know if you wish to be added or removed from this list.
I don't get offended if you want to be removed.
posted on 01/30/2005 3:40:31 PM PST
( Congratulations. You are everything we've come to expect from years of government training.)
Much of the economic cost of exploration and production is complying with some excessive environmental regulations.
I heard a couple days ago that Phillips 66 was getting fined a huge sum of millions of dollars because of clean air violations. I know this has little to do with the cost of pumping oil, but it is part of the trickle down economics environmental regulations pose.
Probably in the Mid East, a lot less attention is placed on environmental stuff, hence, the lower cost of production and exploration.
posted on 01/31/2005 5:24:18 AM PST
(Pryce-Jones: Arab culture is steeped in conspiracy theories, half truths, and nursery rhyme politics)
posted on 01/31/2005 5:13:40 PM PST
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