Riz Khan - Rising oil prices - 27 May 08 - Part 1

A look at the global oil market and what lies ahead given the rise in fuel prices.

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News & Politics

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• oil
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• jazeera
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[elijah5791]

It means he is an ignorant buffoon, but just had to put his two cents in. LOL.

[elijah5791]

I hate solar and wind power, primarily because the mechanisms for harnessing these types of energy are such eyesores. I recently traveled to California, and could not believe how much ranch land was being wasted by wind turbines. This is good land for farming, or ranching, or living, but instead it's being inefficiently consumed for energy.

Still, fossil fuels are not the future, unless we can find a way to manufacture them. France is right: nuclear and hydroelectric are the answer.

[sophiegromit]

Check out the excellent article on the viability of Solar Energy in the January 2008 issue of 'Scientific American' mag. It is a total eye opener. Basically, we have the technology to go solar and to STORE solar energy. All we would need is a section of the desert in Arizona. Check out the article for yourself!

[elijah5791]

(cont'd) Lastly, let me say that this "astronomical increase" is neither unexpected, or unpredicted. Experts have understood the stakes for decades, and have forecast dire scenarios for just as long. Every warning, however, fell on deaf ears. The Congress was too deferent to the environmental lobby, and did nothing. Bush himself warned that all this could happen early in his tenure, and tried to press Congress to overhaul our Energy Policy, but was blocked by them. This is the result.

[elijah5791]

(cont'd) The only ability OPEC has to affect prices is by the increase or decrease of their oil production. And, that is only because we are operating in such a tight world market, where oil inventories have razor thin margins. So, when a hurrican hits Louisiana's Gulf Coast, a war breaks out in the Middle East, OPEC does not increase oil production to match rising demand, or Congress refuses to explore U.S. resources for environmental reasons, then speculators get scared, and we all pay more.

[elijah5791]

(cont'd) The present spike in prices is not the work of sinister forces acting in secret, but rather of world markets working freely in the open. ECONOMICS 101: Prices rise when there is a supply shortage. Said another way: we are not producing enough oil to meet demand, and therefore the commodity is more valuable (read: costly, expensive.)

This is only compounded by the fact that the dollar is worth less today, so it doesn't buy as much oil as it used to. It's a double whammy for us!

[elijah5791]

Again, you are completely wrong. OPEC DOES NOT SET PRICES FOR OIL IN THE WORLD MARKET. In fact, prices are not "set" at all, by anyone. This is the essence of free markets: no one controls prices. That is only possible in government controlled economic systems, or monopolies. Neither of which is the case here.

The "astronomical increase" has to do with surging worldwide demand and overregulated production, plus a declining U.S. dollar.

[sophiegromit]

Sometimes, truth is so evident, you miss it altogether. OPEC has been known to hold secretive meetings, and can dictate pricing policy, via the marketplace AND artificially.  Of course they can raise prices for the U.S. How else can you explain such an astronomical increase just in one U.S. President's tenure??!!! Wake up!

[djaxxx51]

I will never accept asian rule!

[sharekhan8]

djaxxx,

The so called american might is dissolving into oblivion as we speak,the world has changed, 100 dollars is not what it used to be. dont live in cloud cuckoo land, this is an asian century learn it and adjust accordingly