OPEC Cuts Oil Production to Raise Prices

Hey, Army! Get this!

If we ever needed a lesson in why we need to cut down on our dependence on foreign oil our “friends” over at OPEC gave it to us today. They have announced they are going to cut oil production by some 2.2 million barrels per day.

They are doing that so that the price will rise from where it is now, about $45 per barrel, to about $75 per barrel.

This is in line with what I predicted would happen last week. OPEC’s decision will likely lead to an increase in oil and gasoline prices in America and proves the point that we must reduce our dependence on foreign oil. This is further evidence that OPEC’s interests are not aligned with ours.

You can’t fault them for trying to maximize the value of a commodity they have, but you have to fault us as a nation if we don’t move fast in the next Administration to significantly reduce our dependence on foreign oil and the threat it poses to our national security and economy.

We have the domestic resources in wind, solar and natural gas to get the job done on energy and transportation, so let’s use them.”

This business of getting together to set prices is illegal in the United States but we don’t have jurisdiction over other sovereign nations. What we DO have is control over is how much foreign oil we use.

We need to take today’s statement by OPEC and use that as our rallying point to show the current leaders in Washington and - more important, the new Administration and Congress - that the Pickens Plan is the only plan which will reduce foreign oil by up to 50 percent over the next ten years.

The Congress needs to move immediately to give trucking companies and fleet owners incentives to replace gasoline and diesel fueled vehicles with natural gas.

We need to provide a long-term production tax credit (PTC) to build out wind farms in the Great Plains and solar farms in the Southwest. We need to be aggressive about retro-fitting homes and buildings with additional insulation and employ other energy-saving strategies.

We can’t allow OPEC - Saudi Arabia and Iran, Venezuela and Lybia and the others - to artificially determine what we will pay for oil. If we reduce our need for foreign oil, we can dictate terms to them, not the other way around.

The Pickens Plan is the answer. The time is now.

– Boone

Comments10 Responses to “OPEC Cuts Oil Production to Raise Prices”

Jerry McDonald


Yes, oil prices fell to $40 per barrel today, in no time they will be over $55. With a stroke of the pen the new Executive branch could accelerate our plans for creating high paying jobs empowering us to use the plethora of heretofore uncertified fuel conversion kits to transform our existing base of vehicles to natural gas. There are 4 factors that complicate our progress: - Capricious $5000 per day penalties threatened by the EPA scare truck fleets from choosing natural gas as a vehicle fuel option - EPA red tape limiting the vehicle conversion options AND dramatically increase the cost for certifying fuel conversions - Federal alternative fuel tax incentives are written such that migration to natural gas vehicles is out of balance from other options - DOT weight restrictions for heavy trucks that don’t let us reuse the existing fleet Please do not misunderstand me! Many rules and processes are wise and well thought out. However, things like applying the same certification standards for gasoline powered vehicles to natural gas powered vehicles are overkill and counterintuitive. For instance natural gas is an order of magnitude cleaner than petrol. 60 million households agree every day when they prepare their food and heat their homes with natural gas. I hope some folks hear our plea and voice their support for the new administration to enact the following: - Introduce legislation to amend the Federal Energy Policy Act of 2005 to make bi-fuel conversion options eligible for tax credit - Direct the EPA to place a moratorium on the $5000 per day penalty for operation of vehicles using non-certified NG systems - During the period of the moratorium fund the EPA to expand assistance to manufacturers of NG conversions systems seeking certification - As part of infrastructure rehabilitation direct the Department of Transportation to grant weight restriction waivers for those heavy trucks fueled by natural gas Relaxing these regulations doesn’t require sweeping policy changes and the risk of harm is exponentially outweighed by the potential for good. Good for American security, good for American economy and good for the environment.

Stephen Goscin


With political incorrectness, poetic license, and oversimplification: "Turbines, not turbans!"

Jerry Thomas


Not only does OPEC plan on cutting production they also plan on building their own wind and solar power generating facilities! T. Boone must be on the right track or the Arabs would not be trying to do the same thing. According to Kiplinger by year end we will see $50 per barrel and climbing back to the $80 dollar a barrel for crude resulting in our price for oil is climbing back to the $2.25 dollar range. I lived in the UAE for a time and trust me the only thing the arabs like about the US is our dollars.

Fred Mars


With the auto industry failing, the solution is simple. Electric cars and highways that provide electric as you drive. We're not talking about science fiction here, we are talking current technology applied with innovation. Put small vertical wind turbines along those turbulent interstates, and you have electric for lighting, warning/information displays, plug in power at rest areas, until the wireless infrastructure can be built. I can't believe these guys get millions in salary and they can't fix what's wrong. I require much less in compensation and I certainly would accomplish much more.

Robert Jarosak


As far as T Boone is concerned the idea is to get the word out to competent individuals. I thank you and any one else for joining but if we can get others on board its good. I really don't believe many common people have the ability to see what is coming down the road in 10 years, let alone for our kids and there children. When you look at this it is really a move for generations going forward as we will survive threw it. We just won't live long enough for it to wreck us personally but others will be, they will be the less educated lower income. The domino effect the high oil has had is immeasurable. Just look at simple math. $150B went out the door to OPEC. Funny thing the cost of a barrel coincides with the yearly amount going out. So if it is normally $50 a barrel we paid a extra $100B this year, $75B last year and $25B the year before. Was this extra burden on the economy of $200B enough to push it over the edge? My guess is yes. OPEC is really controlling the economy and they have to be pushed out of the picture to see a real recovery.

Veronica


Of course foreign oil interests want to profit from the sale of their oil. Simultaneously, many Americans are under such economic duress and so frequently witness the capriciousness of our federal government with regard to spending, that there is limited will to rein in our federal representatives. Instead of anger, our economic conditions have led to passivity. It seems that people will vote, then turn their attention to self-interest, namely survival in tough times. Witness the small number of senators and representatives who have pledged to support the Pickens Plan. They are not feeling sufficient heat from the electorate. Yet, that is precisely what needs to happen due to their regulatory authority over all energy policy. Personally, if the Pickens Plan is not an integral part of President Obama's initiatives in the first 100 days with congressional support, I hope the Army continues to exist to assist with the speedy exit of representatives acting as "gate keepers" for the status quo. On the other hand, if this group that is the Pickens Army is successful in its influence on the federal government, it could restore vibrancy and renewed interest in citizen participation in government far beyond the Pickens Plan in addition to the fruition of obvious energy benefits engendered in the plan. We all need to be vigilant and stay active.

D Riley


This isn't some grand plan by OPEC to screw the U.S. According to many Wall Street analysts, oil won't be going above $60 for well over a decade, and even the $60 estimate is considered to be too high. Temporary threats by OPEC mean nothing. That doesn't mean we shouldn't drop our oil dependence like a bad habit, but it means focusing only on renewable, clean technologies such as Wind, Solar and Hydro. I would like to see Pickens give up the ghost when it comes to natural gas solutions, but given his history as an oil man, it's hard to believe that he would ever consider it. My biggest concern: Pickens touting the benefits of Wind and Solar energy solutions, but doing nothing but pushing for natural gas exploration in the U.S. And does he really care about the modernization of homes in order to make them more energy efficient? The New York Times recently ran an article that made mention of the natural gas industry sending lobbyists to DC to lobby against this (includes trying to forbid tax breaks to homeowners and public housing for winterizing homes), since it would mean less money in their pockets. Say yes to natural gas solutions, but only if the drilling/extraction processes forbid the use of Halliburton's proprietary extraction technology, which includes the use of hazardous, cancer-causing fracturing fluid that gets pumped into our drinking water and underground aquifers (for those not in the know, simply watch Erin Brokovich for a perfect example of how the gas industry has been silently killing us). Doing a simple Internet search on the dangers of natural gas drilling will tell everyone all they need to know. In its current form, natural gas is not a viable solution. The oil and natural gas industry is now attempting to tap into the Marcellus Shale deposit in the northeast, but it's an uphill battle and, luckily, the industry is finding resistance. If the eastern half of the country had laws similar to what's been happening in the west; namely, the mineral rights to privately owned land going to the highest bidder, then we would all be in a world of hurt.

Gerald McClain


So our goal is for OPEC to reduce production of oil, reduce production oil and reduce production of oil cause we don't need oil. We are using Compressed Natural Gas and Electric cars to reduce the need for oil. New CNG station being built in Stillwater, OK....for the university and public. Lets get going! What are you doing in your city? What is the cost of converting a car to use CNG in your city? Lets get going. Take small steps for your community will add up to big steps for the USA. OPEC has us dancing on a string...time to start cutting the string. Go Pickens Plan

D Riley


That won't work, Gerald. Please educate yourself before you make such ridiculous statements. The average cost of converting a gas-powered car to a CNG-powered one is $15K, and there simply aren't any CNG-powered cars flying off the production lines in the U.S. Even if there were, do you think anyone could afford them in the U.S. right now? Better yet, how do you propose we fill up our CNG-powered cars? There are so few GNG pumping stations in the U.S., it's ridiculous. Do you see where I'm going here? CNG isn't the solution. The only thing the oil and natural gas industry cares about is lining its pockets, not helping America. In fact, I'd wager that more of our natural gas will be exported to foreign countries this year, including the Middle East, than we've seen in previous years.

D Riley


For those of you wondering what types of devastating effects natural gas drilling can do to us: http://www.thepittsburghchannel.com/video/17976058/index.html This, folks, is what the oil and natural gas industry is working to cover up. "True-blooded Americans" like Pickens are well aware of the consequences of drilling. I recommend we ask T. Boone Pickens to allow for natural gas co's to drill into the thousands of acres that he lives on. I can guarantee you that he would refuse ... but he doesn't mind pushing for it in our own backyards.

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