Monday, April 9, 2007

Gas cartel

I dont know about any of you but to me i feel that gas prices every day keep going up a couple cents and its driving me crazy. Gas is not cheap these days but it might be coming back down in awhile because of a gas cartel. A gas cartel could both ultimately lower gas prices and push importers to develop alternative power sources. The world has vast, untapped natural gas reserves. if a cartel forces prices up artificially it will only spur innovation in extracting hard-to-reach reserves. New innovations will give power in the market, and prices overall will sink as more supply moves to market. Also Natural gas is more easily substituted than oil, countries not wanting to pay cartel inflated prices will develop alternatives, from coal to nuclear to wind power. But now that global warming becoming a concern with the carbon dioxide emission they might not want to subsistue coal and nuclear energy for natural gas. Although gas burns much cleaner than coal and natural gas is less expensive then nucluear power. Even if they do decide to create a cartel the supply and demand could easily be fluctuated. I really hope that they do come up with alternatives instead of natural gas. If it works like gas and it cheaper thats all that matters to me. I constantly commute back and forth out of town and with gas prices going up like this i wont be able to afford to do it as much as i do now.
http://www.businessweek.com/bwdaily/dnflash/content/apr2007/db20070409_886425_page_2.htm

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