How not to depend on oil

THE most important statement made last week came not from Vladimir Putin or George W. Bush but from Ali Naimi, Saudi Arabia’s shrewd oil minister. Naimi predicted that crude prices would stay between $40 and $50 throughout 2005. For the last two years Opec’s official target price has been $25. Naimi’s statement signals that Saudi Arabia now believes that current high prices are not a momentary thing. An Asian oil-industry executive told me that he expects oil to hit $75 this decade.

We are actually very close to a solution to the petroleum problem. Tomorrow, President Bush could make the following speech: “We are all concerned that the industrialised world, and increasingly the developing world, draw too much of their energy from one product, petroleum, which comes disproportionately from one volatile region, the Middle East. This dependence has significant political and environmental dangers for all of us. But there is now a solution, one that the United States will pursue actively.

KhaleejTimes.