Posted by: Opey | May 1, 2007

Texas Tea, By Way of Russia

Time for everyone’s favorite topic right around this time of the year, oil and gas prices. I’m not going to bore you with the same old story about why gas prices will be astronomical again this Summer. Increased vehicle use during the season, increased US fuel consumption, OPEC production quotas, and the rise of the Chinese economy all add fuel to the high price fire. Thanks to major media outlets, most everyone knows that story already. What people are starting to ponder, now, is ‘What about the future?’ That is what I’ll bore you with today. A recent report from the Cambridge Energy Research Associates notes that most future oil production increases will come in just a handful of countries.  The top three are projected to be Russia, Iraq and Kazakhstan.  Those countries are not the most stable at the moment, which is never a good climate for the efficient harvesting and production of crude.  The rest of the list reads like a who’s who of countries who are less than friendly with America.  This fact leas the research firm to conclude that Western oil companies and consumers will have an increasingly difficult time in oil markets, due to difficulty in obtaining access to these new supplies.  The report also predicts that the West will have to make greater concessions in hopes to obtaining the rights to this new oil.  Time to make signs and drum up the support for hydrogen, bio-diesel, and other alternative fuel sources.

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