
$4.09 a gallon. I frequently whine as I approach the gas pump. $30 later and I still only have three quarters of a tank (if that). It's a good thing I get 25-30 miles to the gallon in my little Civic. Flying anywhere is out of the question and people around the world want to blame government.
But on Monday; leaders gathered in Jeddah, Saudi Arabia for an Oil Summit. Gordon Brown was the only Western leader present. It seemed that the general concenus was more oil production. More supply to meet the demand.
What a novel idea. It seems to me they discussed standard economics.
Granted; Brown was quickly ridiculed for suggesting the Middle Eastern oil companies, like OPEC and others, invest their "illions" of dollars into creating oil refineries in the West and thereby allowing those countries to also invest in the market.
The Saudi kingdom has committed to increasing their oil production from 9 million barrels to 9.7 million barrels by the end of July and up to 12 million barrels by the end of 2009. They even encouraged OPEC to invest their assests in other nations.
But OPEC maintained- the supply is enough. Nor did the commitment from Saudi Arabia settle everyone.
And the conclusion to the potentially useful summit? Well after a number of disagreements and criticisms, among leaders, particularly on the cause of the prices, they'll meet again this year and talk about it.
Both the U.K. and China have said that not only do they need to invest in the production of oil, but their countries are looking for alternative energy resources. President Bush has insisted the oil production could and should begin to take place in undrilled areas of Alaska.
If the problems and answers are strictly economics: supply and demand; you'd think it would be an easy out. At the same time; IF that's the case, then private companies would need to co-operate, but will they? And can democratically-based governments put restrictions on the cost? This I doubt. But what of other coutries, for example, Nigeria, in which a rebel group is being accused of attacking their oil industry?
It seems the summit only brought more questions than resolutions.
