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The Organisation of the Petroleum Exporting Countries (Opec) has warned that moves by industrialised nations to develop biofuels could send oil prices "through the roof".
Today's caution from Opec secretary general Abdalla El-Badri comes as G8 leaders prepare to meet in Germany for a three-day summit with climate change and energy security at the top of the agenda.
US president George Bush has already pledged to cut America's use of petrol by 20 per cent over the next ten years.
But Mr El-Badri told the Financial Times that the powerful cartel of Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Indonesia, Libya, United Arab Emirates, Algeria, Nigeria and Angola would consider cutting its investment in oil production as a result.
"If we are unable to see a security of demand, we may revisit investment in the long-term," he said.
Opec currently controls more than two-fifths of oil production worldwide.
As the west moves towards biofuels, which can be produced by burning vegetable matter, Mr El-Badri warns that "you don't get the incremental oil and you don't get the ethanol".
The Vienna-headquartered organisation has previously indicated that biofuel demand was pushing up global food prices.
Good, its making them nervous. The US is the worlds largest grain producer. We need to become self sufficient.
Actually, I am contemplating going to SVS in the near future to get my Viper E85 capable.
Hate to admit this but it is actually fun taking the Viper to the pump. Get to meet at least a few new people every time I got to fill up.
Am I understanding this correctly? They are threatening to raise the price of oil if a competitive product becomes more readily available? Doesn't that go a little against the logic of capitalism?
This is there way of staying in power. They think that a Biodiesel fuel would eat into there profits enough that they are threatening to cut production. Maybe we need to stop protecting the Saudi's, and we will see what happens to there little piece of paradise. Additionally, I totally agree that we need to keep a strong military and develop our own resources in able to cut OPEC off.
The sad part about it is the rest of the world will side against us to protect the Arab countries that are supplying them with petro fuel as we move towards an alternative fuel, not that they are really on our side at the present moment, but things will get worse.
Damned if we do, and damned if we don't!
Am I understanding this correctly? They are threatening to raise the price of oil if a competitive product becomes more readily available? Doesn't that go a little against the logic of capitalism?
by establishing a cartel, they already go against the basic logic of capitalism. That is collusion and price fixing. big no-no if they were governed by the SEC.
Am I understanding this correctly? They are threatening to raise the price of oil if a competitive product becomes more readily available? Doesn't that go a little against the logic of capitalism?
And against every principle of fundamental economics that was ever created. Its a threat, nothing less. I guess we'll see if those are empty threats or not soon enough.
If we become totally independent of those bastards, we will emerge evermore worldy powerful than in the past. Possibly our dollar will come back into check with the euro. It's really the only thing any country has hanging over our heads, oil. Or rather, the means to refine it fast enough to keep up with demand.
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