Producer nations add more risks to importing nations from failed policies
July 14, 2008
South Korea cuts back on energy use | www.iht.com
Policies in crude producing countries are equally as important and unfortunately, failed, as those of the importing countries. Deepening social issues in OPEC member nations carry added risks to importing nations that are not being understood well enough to adequately gauge their potential impact to the global economy. This is an issue that carries an even greater need for sound policies that control reduction of dependency on imported crude, domestic exploration and production efforts as well as alternative energy developments.
The G-8 nations have all they need for help on energy prices, they just need to start doing it.
July 10, 2008
Rich G-8 nations looking for help on energy prices | www.iht.com
Dialogue is always good. Positives can usually be found, especially when interests are shared and capabilities are synergistic. The G-8 countries have most of the tools and especially the commonality of interests to produce positive and responsible results to any of the issues they face in common. The problem has always been that many times they cannot see the commonality of their interests and therefore get stuck in unilateral planning and solution implementation. Perhaps now, a new level of cooperation and multilateral implementation of solutions can begin. It is in everyone of their interests to do so.
Hopefully, no one is very surprised by the US trade with Iran
July 10, 2008
Despite conflict, U.S. does business with Iran | www.msnbc.msn.com
The article and the fact of US trade with Iran brings forward the almost laughable state of diplomatic policy in the US. Another reason why the sanctioned nations do not fret all that much under sanctions, especially those initially imposed. While diplomatic searches to avoid armed conflict are in everyone's favor, we should all stop fooling ourselves into believing that sanctions produce much change.
We should all hope this effort is successful. In truth it should not be necessary.
July 9, 2008
Brazil launches campaign to remove ethanol tariff | www.ethanolproducer.com
There is every reason to hope that the Washington brain trust will see the wisdom in removing this tariff. We should press all of our leaders to get behind this effort, it is more important than many of their compromised eyes can see. We should also press to abandon the current failed policy supporting corn to ethanol here in the US and press for alternative feedstock for biofuels that are not part of the food chain grains.
Another reason for the West to do nothing-Khourais cannot be a reason to become complacent
July 9, 2008
Saudi oil project brings skepticism to the surface | www.iht.com
There is no reason to doubt that the Saudi's have a real project here and have a significant vested interest in seeing that it and others like it are successful. The level of production and the timing of that production are unimportant in the much more important equation the West and the rest of the world economies have to consider. Even with this project at 100% of Saudi projections becoming reality, there are still a vast number of reasons for planning beyond and without it.
Biofuels are a viable part of the equation; failed policies are the real culprit driving food prices
July 7, 2008
Report: Biofuels blamed for food price crisis | www.msnbc.msn.com
Ethanol, biodiesel, jet fuel replaced by coconut oil(Virgin Atlantic just completed their first flight using this fuel alternative over the weekend), heating oil from restaurant waste oil and the list goes on. These are part of the equation for reducing price pressures on crude. Failed policies by political leaders and pressures from certain agricultural special interest groups are contributing to food price inflation.
July 4, 2008
South Korea gets serious about reducing its dependence on foreign oil | www.iht.com
Domestic reserves of crude need to be developed to the fullest extent possible. Not doing so should be reason enough to remove whomever and whatever obstacle standing in the way. Enough of the hysteria about natural resource development from the environmentalists. For at least the next 30 years, this has to be part of the equation for America.
Blame enough to go around but what we need are solutions.
July 3, 2008
And the blame for high oil prices continues. | seattletimes.nwsource.com
I am no defender of the President on energy policy. Let's get that said upfront. But, I am also not a defender of Bill Clinton, Bush 1, Regan, Carter and I think you get the drift. I am even less of a defender of virtually every Congress going back as far as Truman. But, enough is enough already! Energy policy in the US has been irresponsibly managed and successfully hijaked by special interest groups long before Bubba got close to the White House.
Crude's reality check- more than speculation
July 3, 2008
Dr. Mark Yergin testifies to Congress | www.nytimes.com
Speculators do not make markets or create fundamentals that underpin markets. Speculators take risks to take advantage of markets or opportunities created by any form of imbalance in prices. It would be a mistake to think that wringing the speculators out of markets will restore much pricing stability to a market being driven by fundamentals that have shifted as dramatically as they have in much of the commodity sector. There is no single cause for crude's price run-up and everyone would be well served to stop seeking a single cause in order to find a single solution. It is not in the interest of anyone to do so.
Export restrictions taken unilaterally are a significant concern in commodity price rises.
July 2, 2008
Once Safe, Public Pensions are Now Facing Cuts | www.nytimes.com
Restrictions on exports of key commodities are part of a "Perfect Storm" scenario that is a more critical part of the upward commodities price spiral than many nations and experts give credence to. Exporting countries are going to have increasing difficulties in maintaining levels of exports resulting from domestic internal demands along with events in nature and geopolitics. This situation bodes poorly for global inflation rates as well as continuing price and supply instability across a broad range of critical commodities. New policies have to be developed on a more global basis rather than on the basis of doing what is expedient for a single nation or group of producers and exporters.
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