The OPEC countries are in a quandry because of their social programs.
Most of the governments are not really solid or consitutionally based.
They've kept internal dissent down by spreading oil money like candy at
a Christmas parade. Say ENTITLEMENTS. Now their biggest customer (US)
is doing things they and their people don't really like, plus the price
of oil is at or below what they need to fund their programs to prop
themselves up. But our trigger finger is itchy enough they can't push
us too far. Plus if they restrict our oil, it makes alternatives more viable
(they really don't want us to rush hydrogen cars into production) moving
the date when we don't need them forward.
Talk about a Catch-22.
If they restrict production to raise prices, they may lower their total
revenue, or risk some sort of military action, or make us develop other
sources in which case the party is over...
------------------------------------------------------------------------
Jim Wildman jim@rossberry.com
903-736-4393
On Sat, 10 Nov 2001, Paul M Foster wrote:
> On Fri, Nov 09, 2001 at 11:29:41AM -0500, Robert Haeckl wrote:
>
> > Jim Wildman wrote:
> > >
> > > I'll guess that the refineries have also completed their switchover to
> > > heating oil and that more production is on line.
> > >
> > > ------------------------------------------------------------------------
> > > Jim Wildman jim@rossberry.com
> > > 903-736-4393
> > >
> >
> > George Bush made an appeal last night to encourage domestic production
> > of oil to decrease the dependency on foreign oil. With the 30% drop in
> > gas prices, it seems to me that foreign sources are more dependent on us
> > to buy. Increasing domestic production might decrease dependency, but I
> > doubt that this will translate into relatively cheap energy costs.
> > Supply might remain steady, but I doubt prices will.
> >
> > -Robert
>
> We probably use more oil than anyone else in the world, so OPEC doesn't
> really want to lose us as a customer. OTOH, when you have the trillions
> they do, I can't see why they'd care. They could all go live in Bolivia
> forever and never have to pump another gallon. But regardless of
> pricing, it's never a good idea to be dependent on foreign countries
> when you can get the same goods at home. Particularly when most of those
> countries are as volatile and contentious as the Arab states.
>
> Paul
>
This archive was generated by hypermail 2.1.3 : Fri Aug 01 2014 - 20:02:09 EDT