Saudi Arabia is planning to increase oil production next month by a half-million barrels a day. The increase could put the production levels at close to 10 million barrels per day. 
So why when the Saudis are getting record-breaking pricing would they want to increase oil production?
The move is a clear sign the Saudis are getting a little nervous about the effect of high oil prices. Not that they don’t like the pricing, but they are becoming aware of how the increased pricing is effecting economic world-wide growth – thereby leading to less oil needed.
The Organization of Petroleum Exporting Countries (OPEC) on Friday cut its 2008 estimate of world oil demand. Citing slower economic growth and high oil costs – which leads to lower demand in major countries.
If you think about it, reliance is key. If they keep the overall oil pricing in an area where there is still growth (and the general consumer can afford it) then, due to general apathy, there will be no real focus on finding alternative fuel sources.
We have been here before with the same result. Will we learn from it this time? I doubt it, some things never seems to change…
: 
: 
: 
: 
: 
: 
: 
: 
: 
: 
: 
Fine, I suppose this is where you look for some witty insights to my mind. A "bio" of sorts. Here is the deal... I ride motorcycles, smoke cigars, golf, kayak, fly, race my car through the mountains, write (a lot), and travel extensively. I am almost old enough not to care what other people think about me...almost. ~Godfadr
It is about time!
We went through this with Carter and learned nothing from it. He said we need to find alternative sources and we didn’t. The Saudis lowered prices and we just went our usual way of burning gas and not caring about the future.
I heard something interesting a while back on one of the many radio programs I listen to. I think it was Coast to Coast AM with George Norry..anyways…
The concept of alternative fuels being used before found the production costs to be equal to about $40/barrel oil. When we “got serious”, the oil prices dropped below $40, so we didnt further pursue anything. With prices at over 3 times that for oil now, wouldn’t it be smarter to bring back the old equivalents, enhanced with our new technological breakthroughs to push forward, meanwhile forcing OPEC to drop prices, which we use as necessary for certain everyday components made by petroleum, whle continuuing our alternative endeavors?
Great point Mike. I am just surprised we did not make that move sooner. Of course the whole global warming movement is a bit stronger right now (back then it was global cooling).
http://theslowbleed.com/2008/05/15/this-week-global-warming-wasoops/
We need a three prong approach to this problem:
1) Reduce reliance on foreign oil by drilling at home and using coal supplies
2) Truly support development of alternative sources like wind, solar, wave, etc. with grants and tax breaks
3) Require conservation through fuel efficient cars and other measures. You’d think the price of gas alone would force efficiencies but unfortunately the average consumer might need a more forceful push.
But hey, I’m not saying anything new!
What will the recent fuel economy move by president Obama do to impact Saudi Oil?
What if we just started using as much foreign oil as possible until it was all used up, then the US would be the only country with any oil left.
I know it is a bit of an extreme approach, but it could get interesting. I hope that I don’t get banned for blasphemy.