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To: humint

It might be so. Gov't policy affecting oil prices can be noxious, as it was when the Saudis, our friends, staged their oil embargo. There is OPEC though, which definitely is the main control over oil price. They would like to have oil price high, but at the same time want to keep their market viable. If they set the price too high, they lose business even if the world oil supply is not as elastic as it once was. The last thing they want is for oil consuming markets to turn to nuclear power and permanently reduce oil imports.


24 posted on 08/03/2005 10:28:22 AM PDT by RightWhale (Withdraw from the 1967 UN Outer Space Treaty and open the Land Office)
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To: RightWhale
"The last thing they want is for oil consuming markets to turn to nuclear power and permanently reduce oil imports."

Internationally accepted policy is to have a balanced and stable price. If the price for oil is too high, huge wealth transfers to the oil producing countries where as the oil consuming countries can't afford to produce or ship products. This sparks a recession which will inevitably lead to reduced demand for everything, including petroleum products.

Alternative energy sources in consuming countries introduce a stabilizing factor that benefits the entire energy sector. Iran is an interesting case. As an oil producer, their nuclear bid is causing instability and is in line with other aggressive behavior that should be a major cause for concern. The Iranian system of Valeyat -E-Faqhee or supreme religious rule is a regressive and confrontational system. The fact that they own a significant portion of the world's proven energy reserves is very disconcerting, to say the least.

25 posted on 08/03/2005 10:47:34 AM PDT by humint (Define the future... but only if you're prepared for war with the soldiers of the past and present!)
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