Consumption & Demand

A bold move, but our oil problems are just beginning

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The IEA decision to release 60 million barrels from strategic petroleum reserves (SPR) of member nations has been criticized as politically motivated, too small and too late to matter, or, at best, as a desperate attempt to fend off economic woes. The reality and impact of the decision are more complex than that. The move is a bold, price-suppressing “poke in OPEC’s eye” from nations that have been perpetual price takers in the world oil market. The short-term rationale for the decision, however, should not obscure our real oil problem – geopolitics is combining with economics and geology to put us in an oil crunch that is not likely to abate until our nation moves beyond oil.

ODAC Newsletter – July 1

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The fallout from the IEA’s recent decision to release 60 million barrels of oil reserves continued this week. OPEC members criticized the IEA for “breaching its own principles” and interfering with the market. Traders too seemed little impressed with the move as prices recovered last week’s losses, as Greece drew back from the brink. After all, 60 million barrels is less than a day’s global consumption.

The Saudi Arabian Protectorate of Bahrain

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Bahrain wouldn’t seem to have a lot to offer, except that it seems to offer something for a million people (half of which are guest workers) living on a desert island. Why is it generating so much interest? Is there any oil left there? In this article, I will discuss some recent developments between Bahrain and its neighbors in the context of its long history.

The President, the media, and oil supply

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The public’s understanding of oil supply issues has not been enlightened by media coverage. From my perspective, the media does a terrible job of providing factual information concerning oil supply and oil price issues. Aspects of these issues appear to be taboo even for a media outlet such as National Public Radio which supposedly has the objective of educating the public about important societal issues.