The recent decline of oil prices on the world market is no coincidence. This is due to supply and demand, meaning that supply now far outweighs demand.
Some are suggesting that the China's economy has slowed somewhat, so their insatiable demand for oil has greatly diminished.
Jamaica's friend and neighbour, the United States, is the world's largest producer of natural gas and energy experts are predicting that, within a couple of years, they will surpass both Saudi Arabia and Russia as the leading producer and exporter of oil.
I'm longing for that day, then the world can tell the Organization of Petroleum Exporting Countries (OPEC) and the Saudi billionaires to go and drink their oil.
Wall Street shouldn't be allowed to speculate on oil, because that would inevitably drive up the price. But the present relief is welcome.
It was long predicted that oil shale has the potential to have a huge impact on the oil industry. But the technology wasn't quite ready -- now it is. And the good news is the cost of extracting natural gas from rocks and oil from shale is coming down. It is like an energy renaissance.
As it now stands, I wouldn't be surprised if a price war develops within the ranks of OPEC, because the Saudis are worried about market share. Just imagine that United Parcel Service (UPS) fleet of trucks is run by natural gas -- exciting.
Jamaica, though, shouldn't be complacent about this recent development. Conservation and renewable energy should be on top of its agenda.
OPEC controls oil production and price, and the oil conglomerates have put a stranglehold on the economies of the developing and Third World countries, so we continue to have a hard time due to high energy prices.
Take Jamaica for example, its oil bill is a whopping US$2 billion a year. And even with concessionary arrangement from Venezuela, the country still can't afford it. It is far too expensive and therefore unsustainable.
It is estimated that it costs US$4 to produce a barrel of oil in Saudi Arabia, which means when oil was fetching US$35 per barrel they were making money. I'm not suggesting that they give away their oil, because it is a business and it's their natural resource, but they're only a few countries that are blessed to produce oil which the world at large depends on. They should let their conscience be their guide and not greed.
Noel Mitchell
Westchester, New York
nlmworld@yahoo.com
Long for that day to tell them 'drink their oil'
-->
Some are suggesting that the China's economy has slowed somewhat, so their insatiable demand for oil has greatly diminished.
Jamaica's friend and neighbour, the United States, is the world's largest producer of natural gas and energy experts are predicting that, within a couple of years, they will surpass both Saudi Arabia and Russia as the leading producer and exporter of oil.
I'm longing for that day, then the world can tell the Organization of Petroleum Exporting Countries (OPEC) and the Saudi billionaires to go and drink their oil.
Wall Street shouldn't be allowed to speculate on oil, because that would inevitably drive up the price. But the present relief is welcome.
It was long predicted that oil shale has the potential to have a huge impact on the oil industry. But the technology wasn't quite ready -- now it is. And the good news is the cost of extracting natural gas from rocks and oil from shale is coming down. It is like an energy renaissance.
As it now stands, I wouldn't be surprised if a price war develops within the ranks of OPEC, because the Saudis are worried about market share. Just imagine that United Parcel Service (UPS) fleet of trucks is run by natural gas -- exciting.
Jamaica, though, shouldn't be complacent about this recent development. Conservation and renewable energy should be on top of its agenda.
OPEC controls oil production and price, and the oil conglomerates have put a stranglehold on the economies of the developing and Third World countries, so we continue to have a hard time due to high energy prices.
Take Jamaica for example, its oil bill is a whopping US$2 billion a year. And even with concessionary arrangement from Venezuela, the country still can't afford it. It is far too expensive and therefore unsustainable.
It is estimated that it costs US$4 to produce a barrel of oil in Saudi Arabia, which means when oil was fetching US$35 per barrel they were making money. I'm not suggesting that they give away their oil, because it is a business and it's their natural resource, but they're only a few countries that are blessed to produce oil which the world at large depends on. They should let their conscience be their guide and not greed.
Noel Mitchell
Westchester, New York
nlmworld@yahoo.com
Long for that day to tell them 'drink their oil'
-->