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With the price of US light crude oil at $126 a barrel and climbing, people look far and wide to see what, or preferably who, is to blame. Energy strategists believe the price of oil could climb as high as $200 a barrel within the next six months as global demand increases. Much of the crisis is due to China's continuing economic boom and India's rapid economic expansion, but it would be too simple to blame these two countries alone. Shortages are also due to the constant needs of established markets like the US, the European Union and Japan, none of which has made any attempt to reduce consumption. Quite the reverse in the US, where any attempt by the government to curb oil consumption is met by howls of protest.
A proposed alternative method of producing fuel, biofuel, has met with limited success for industry. But a dramatic consequence, only now being realised, is the effect it is having on basic foodstuffs like rice and corn which most of the developing countries rely on. So instead of the poor getting food on their plate, the rich have been able to keep their second or third car on the road. Such selfishness only contributes to globally escalating prices of all products.
Making the oil supply situation worse is that many oil-producing countries cannot increase production, something that the US frequently calls on Opec to do. Yet it is easy to blame Opec for the world's oil problems, but Opec, although a principal player in the market, is not the only supplier. Many other nations export oil to the market, but they remain under the US firing line. With the US Energy Secretary calling for an increase in oil reserves as a buffer against inflation and shortages, it is very apparent the US has no desire to change the habits of a lifetime, but instead continue to guzzle gas.
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