This article continues to discuss the oil situation. Even though Obama has been urging more action for alternate energy, the world is still focused on the oil produced in Saudi Arabia. This article states that Saudi Arabia will be producing a lot more oil in the future. Its council of ministers asserted that excessively high petroleum prices threaten the global economy and that a downturn would lead to an abrupt pullback in prices, therefore hurting the interests of oil exporters and consumers. In fact, Last week, the transport arm of state-owned Saudi Aramco booked at least nine supertankers, far more than usual, for shipments to the United States. But, the oil markets are still unimpressed; expensive crude is driving up the gas prices instead. Also the concern about rising demand and tensions with Iran continues to offset Saudi assurances and any increase in U.S. production. New restrictions on transactions with Iran’s central bank are pinching Iranian foreign trade, including crude oil.
Bill Day, a spokesman for Valero, the largest U.S. oil refiner, said: “To us it would make more sense to have the Obama administration approve the Keystone pipeline to bring low-cost oil from Canada rather than rely on imported oil from the Middle East, but the more oil the better.” I personally think that no matter the speed of drilling and producing more oil, there is still a dire need for alternate energy. The sooner the public realizes it and takes action, the better it will be for our global society in the long run. Moreover, this article emphasizes the fact that oil prices are not going to decline despite the fact that Saudi Arabia plans on producing more. Also, consumers "are not interested in buying more than they are now." Therefore, there is really no need to be producing so much oil. Since prices are adjusted on a monthly basis in Saudi Arabia, it could lower the prices in order to persuade more people to buy more oil. Not to mention the controversial nuclear testing in Iran. So, there is a lot going on in the oil market that could have drastic changes economically, politically, environmentally, and thus socially.
http://www.washingtonpost.com/business/economy/saudi-arabian-oil-minister-says-kingdom-ready-to-boost-output/2012/03/21/gIQAW0DfSS_story.html
Bill Day, a spokesman for Valero, the largest U.S. oil refiner, said: “To us it would make more sense to have the Obama administration approve the Keystone pipeline to bring low-cost oil from Canada rather than rely on imported oil from the Middle East, but the more oil the better.” I personally think that no matter the speed of drilling and producing more oil, there is still a dire need for alternate energy. The sooner the public realizes it and takes action, the better it will be for our global society in the long run. Moreover, this article emphasizes the fact that oil prices are not going to decline despite the fact that Saudi Arabia plans on producing more. Also, consumers "are not interested in buying more than they are now." Therefore, there is really no need to be producing so much oil. Since prices are adjusted on a monthly basis in Saudi Arabia, it could lower the prices in order to persuade more people to buy more oil. Not to mention the controversial nuclear testing in Iran. So, there is a lot going on in the oil market that could have drastic changes economically, politically, environmentally, and thus socially.
http://www.washingtonpost.com/business/economy/saudi-arabian-oil-minister-says-kingdom-ready-to-boost-output/2012/03/21/gIQAW0DfSS_story.html
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