Excerpts from an article from Bloomberg.com:
- crude supplies will stay tight through the end of the decade.
- The situation will persist until 2010.
- Oil prices have climbed 23 percent to more than $75 a barrel this year
- Persian Gulf states that don’t allow international companies to develop their oil reserves, such as Saudi Arabia and Kuwait, should invest more to expand output themselves,
- The International Energy Agency’s Mandil told reporters today in Doha that OPEC would “just about” meet the expected 25 percent growth in global demand over the next three years. (Source)
The most amazing quote is the third:
Persian Gulf states that don’t allow international companies to develop their oil reserves, such as Saudi Arabia and Kuwait, should invest more to expand output themselves
They’re making billions at these prices. Why the hell should they increase output? Eat up their resources for decreased revenue? There’s absolutely no incentive for them to do so.
Oh, this is all just cruel justice for America, which has grown fat and lazy on its cheap gas. Think about it — gas is just now getting to be more expensive than milk! We’ve brought it on ourselves with our short-sightedness. We’ve had almost thirty years to prepare for this oil crisis that is revving up, but what did we do instead?
Invent the SUV.