Thursday, July 12, 2007

OPEC Worried About Renewable Fuels

It really shouldn't come as much of a surprise to learn that OPEC, the Organization of Petroleum Exporting Countries whose oil cartel ensures that crude oil prices stay high in world markets, advocates that other countries not invest in domestic renewable fuels.

Well, how surprising anyway. They can't stand the idea that other countries might want--and need to free themselves from their economic stranglehold.

Trotting out the same old tired messages of doom and gloom, OPEC, whose member countries include such notables as Iran, Venezuela, Libya, Indonesia and Saudi Arabia, warns about the many "dangers" of biofuels in its May/June 2007 report.

OPEC is in a really sticky situation. Its biggest customers, America and Europe, are racing to invest in a range of alternative energy programs, including biofuels like ethanol and biodiesel. Increasing cartel supplies will lower world oil prices but also reduce oil revenues back at home. This is not a good option when these countries need to keep their subjugated populations under control. But maintaining higher and higher crude oil prices and keeping the oil money pouring in only accelerates the use of alternative fuels like ethanol and break-thru transportation technologies like hybrid vehicles.

OPEC projects that there will be a drop in demand for OPEC oil by 2010 as non-OPEC countries pump more crude oil and energy alternatives such as biofuels play a bigger part in the energy supply.

We can only hope.


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Source: OPEC

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