14 June 2008

They blinked

The New York Times business section has the good news: "Saudi Arabia, the world’s biggest oil exporter, is planning to increase its output next month by about a half-million barrels a day, according to analysts and oil traders who have been briefed by Saudi officials... The move was seen as a sign that the Saudis are becoming increasingly nervous about both the political and economic effect of high oil prices. In recent weeks, soaring fuel costs have incited demonstrations and protests from Italy to Indonesia... The current prices are also making alternative fuels more viable, threatening the long-term prospects of the oil-based economy.

Rico says it's time for that compressed-air-powered car...

1 comment:

Peripatetic Engineer said...

The Saudis realize that they need to keep the price of oil at a level where people will still use gasoline. If people start conserving, buying smaller cars and switching to alternative energy source, the Saudis know they will sell less oil and their economy depends on it. Best thing we can do now is cancel the moratotium on offshore drilling.

 

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