October 15, 2008

Oil : OPEC is so screwed

Even as speculation dissipates from commodities and oil begins to drop, Americans are maintaining their stingy ways and even accelerating them. Which has to scare the hell out of you if you're OPEC. For it's part, the oil cartel is planning on production cuts to stabilize prices. Which will cause a further acceleration in the transition to more fuel efficient cars and the development of alternative fuels. Which will drive down prices further, even with demand growth from cheaper fuels (mostly since bioreactors won't need any arable land so they can be scaled up quickly and dramatically).

What will be interesting is the change in the geopolitical landscape as oil rich nations destabilize. And it'll be hella funny to watch the US transition rapidly to a solid focus on Israel to the exclusion of all our former 'friends'.

Oh. and for those of you who think manufacturing synthetic oil is hard, as Exxon. They funded several research projects in the early '80's and, as it turns out, with the right feedstock it's pretty easy.

Posted by mcblogger at October 15, 2008 12:41 PM

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