Has the price of oil peaked?

The price of oil will NOT drop much in the future. Unless, of course, we have alternate sources of energy that make using oil obsolete. Read Jim Jubak’s column if you want to know why. Here are a few excerpts:

Well, at least somebody in the world has an energy strategy in place.

Unfortunately, for those of us who live in net oil-consuming countries, it’s the oil-producing countries that have the plan.

It will give oil producers more control over the world’s oil supplies. And it will put them in a position to control the price of refined petroleum products, just as they now control the price of crude oil.

And, quite frankly, I don’t see any reason why the oil producer’s energy strategy shouldn’t succeed. No government in any oil-consuming country has come up with a strategy for fighting back.

You’d think somebody is Washington, D.C., the home of our elected leaders, would be up in arms about a trend, which, if not countered, will push the United States even further down the oil well than it is now. But I don’t see concern, worry, panic, anger — any of the emotions that a politician needs to exhibit, and then tap, in order to move a country off dead center.

Source: MSN Money – Oil producers reach for more power – Jubak’s Journal

You can read a summary of Jubak’s column at my blog Trends I’m Watching.

If you don’t think we need to find alternatives to oil, read this.

The Saudi Arabian branch of al-Qaida this week provided religious justification for its attempt last Friday to car-bomb the huge oil-processing complex in the eastern Saudi town of Abqaiq. "Targeting oil interests is legitimate economic jihad," said a 63-page document posted on a militant Islamic Web site. "Oil is the basis of modern industry and the backbone of industries in infidel countries."

The missive was apparently written some time ago by Abdul Aziz bin Rasheed al-Anzy, a key al-Qaida propagandist now in Saudi custody. It sheds light on how terrorists plan to target oil interests.

"Pipelines may be the front line in a long-term war of attrition on oil and its interests," it says. "Pipelines are an easy target militarily. Their protection is virtually impossible because of their length." The al-Anzy document adds that "God’s wisdom has decreed that the oil wealth be concentrated in the Arabian peninsula and Iraq."

via IBD