Opec Blackmail?

[drew630]

Biofuels 'will push up oil price'

The chief of the Opec oil cartel has warned that investing in biofuels could push oil prices "through the roof", the Financial Times has reported.

Opec secretary general Abdalla El-Badri said moves to use biofuels would make his members consider cutting investment in new oil production, the FT said.

President Bush says the US will cut petrol use by 20% in 10 years, partly through increased use of biofuels. Opec members control about 40% of the world's oil production.

Mr El-Badri said that while Opec members had so far maintained their investment plans, he added: "If we are unable to see a security of demand... we may revisit investment in the long term."

Rest at link:
http://news.bbc.co.uk/2/hi/business/...TOKEN=32903737

[69Firebird400]

In my opinion, OPEC isn't going to lose demand; their growth might slow down a little bit, but there's just too much demand out there than can be met with biofuels. I also don't think the US will get to Bush's 20% renewable fuels target by 2017.

Also, at this point, most OPEC members are pumping at capacity, and their wells are on the decline, so they'll have a smaller and smaller influence on the world market in the coming years (though still a substantial one).

Oh, and if OPEC wants to screw themselves, then they'll let oil prices go even higher, because at some point, high prices WILL hurt demand, or send people to alternatives, or both.

[mgescuro]

I don't believe there will be a decrease in demand. Demand of petroleum based products will always be there.
But there will be increase in competition.

It's too early to even begin to estimate what the free market will do and how the free market will react.

Biofuels should only be supplementing the current petroleum infrastructure -- at least for now.
I don't know the capabilities of the US corn/biofuels industry to even wager a guess as to the capacity constraints here. But I do believe this is an opportunity for high volume, genetically engineered crops that can feed directly into biofuels processing, not to mention recycled bio-wastes.

[SJZ3]

I can never remember, are we "freinds" with Saudi Arabia and Dubai?

Certainly doesn't seem that way sometimes.

[Butz]

OPEC can go to hell! All the more reasons to cut America's dependence on foreign oil.

[coaster.n3rd]

Screeeeew OPEC!

[rsbaker]

Black mail is exactly what that is which makes it imparative that the United States become 100% energy independant as quickly as possible.

[Dynamo]

Wow, that may be the first fuel OPEC is genuinely afraid of. That says a lot, doesn't it?

[Dynamo]

Originally Posted by mgescuro

.

Off topic, but my brother in law and I were watching sports center the other night and he said, "Is anybody actually rooting for Bonds?" I said I know of one, but not really.

[Pucks]

Originally Posted by rsbaker

Black mail is exactly what that is which makes it imparative that the United States become 100% energy independant as quickly as possible.

Let's become independent of our farmers too now that I just paid 3.99 for a gallon of milk.

[TJ95GAGT]

No one should be surprised by this, OPEC will do what they have to make thier money. Heck, they cut production last year because they felt they needed to increase the price. This just goes to further support those who don't buy the "its supply and demand at work" when it comes to oil prices.

As far as demand going diminishing significantly, never, not in my lifetime atleast( I'm 24). Even if today forward every car made in the US ran on say... water, how many years would it take to get all the ICE powered cars off the road? I still see early 90's and 80's cars on the road alot, not to mention the classics that people drive on nice days. And thats just IF the US could do that, we're years and years away from significantly cutting OUR consumption, what is the rest of the world doing?

But regaurdless, when our consumption does begin decline, I've always just assumed the price would go up. Maybe if OPEC didnt want to enjoy a couple great years, they could have slowed the investing in alternatives.

[jbartley]

helllooo democrats? can we start drilling in ANWAR yet?

Originally Posted by TJ95GAGT

But regaurdless, when our consumption does begin decline, I've always just assumed the price would go up. Maybe if OPEC didnt want to enjoy a couple great years, they could have slowed the investing in alternatives.

price would go down as well. think of the supply and demand curves. over the long term, they'll cut production to match our the worlds demand, or so flood the market so alternative fuels are too expensive.

don't forget only ~8% of our imported oil comes from OPEC countries...

[TJ95GAGT]

Originally Posted by Pucks

Let's become independent of our farmers too now that I just paid 3.99 for a gallon of milk.

lol nice. I just noticed that too, the fiancee usually stops for milk, the last time I bought a gallon it was about 3.20, a couple months ago, it was 3.90 last night.

[boblutzfan]

Originally Posted by jbartley

helllooo democrats? can we start drilling in ANWAR yet?

I was waiting for someone to say this. Drilling in ANWAR is inevitable. OPEC is screwing themselves in the long term. In 20 or 30 years when Alaska is the new middle east...and we are energy independent - what will all the terrorists do for funding?

We have oil in Alaska and Canada but the tree huggers and democrats won't let us drill for it. And for all those folks that think it will ruin the environment go take a drive through the East Texas Piney Woods. That was oil country 80 years ago...but those fields are depleted or now low enough that extracting oil is too expensive. The landscape is green and lush. Just goes to show that all the reckless drilling of generations long past did nothing to permanently harm the environment.

What the democrats and tree huggers fail to remember is that oil is a naturally occuring product. Modern drilling methods would allow for relatively clean extraction from a largely unpopulated Alaska and Canada.

That is the future...eventually.

[New_Mexico_Sunset_on_Rt66]

All the more reason to tap into our own reserves to become more energy independent. Such as tapping the reserves in Wyoming, and ANWAR.

We also need to reinvesitgate the "New Source Review" of the Clean Air Act of 1970.