Oil Prices: the difference a week (weak?) makes
A week ago: We will drive "oil prices through the roof" if you persist in the development of bio-fuels.
Today: The story is of the recovery of oil prices from a huge selloff on Friday.
If OPEC wants to delay the development of cost-effective bio-fuels it should expand production, not contract it. Conversely, if bio-fuels become more likely to be competitive in the future, we would predict oil prices to fall today.
Today: The story is of the recovery of oil prices from a huge selloff on Friday.
If OPEC wants to delay the development of cost-effective bio-fuels it should expand production, not contract it. Conversely, if bio-fuels become more likely to be competitive in the future, we would predict oil prices to fall today.
Labels: oil prices, OPEC
posted by John B. Chilton at 6/12/2007 12:05:00 AM
3 Comments:
I cannot agree more, and as a former Saudi oil minister said: "the stone age did'nt end because we ran out of stones" ... only because we found alternative tools to stone... Iron!
Cheers
The key thing is that as envisioned by the Bush Administration, the use of biofuels will most likely _increase_ the need for petroleum-based products, since it is so completely based on corn-derived ethanol (and most reputable studies show that biofuels derived from corn are amazingly dependent on petrol products). Although this is wildly popular among corn-state senators in the U.S. Congress, it makes no sense at all... except in that strange other-world called the Bush Administration.
anonymous,
I didn't have bio-fuels in mind.
And I completely agree bio-fuels are nonsense and have said so many times on this blog.
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