Tuesday, November 28, 2006

Mr. Chidambaram VS Oil

India's Chidambaram suggests fixing price band for crude oil

Mr. Chidambaram says, “Oil consumers have assured producers that prices will not go below a certain level and producers should in turn assure consumers that prices will not go above a certain level.”

Here he is talking of shoring prices of a commodity. On the other hand he professes free economy and trade.

He wants to direct more money to improving roads, ports and other infrastructure and accelerate economic growth to 10 percent by 2010, from the average 8.2 percent pace of the past three years.

Every fool in the world knows that above will exert ever increasing pressure on the demand side for oil, which in turn will have cascading effect on the real price of oil. In other words, he wants to have one side shoring.

"Oil producing countries must understand that sustained long-term, very high prices of crude will destabilize the world economy,” Chidambaram said.

He should know that, on the otherside, sustained long-term cheap oil prices will destabilize the whole earth.

India lost one percentage point of economic growth annually in the past three years, Chidambaram said, setting back poverty-alleviation efforts.

He should better abolish taxes on oil, which are oiling his rotten apple cart.

He said, “This is the gravest injustice done to developing countries.”

What's he asking for? Charity to get rich...

Mr. Chidambaram, we live in this ruthless world. Stop cribbing and look for alternate sources. Oil will fall automatically.

Friday, November 10, 2006

The US Energy plan to see a wind of change

Start of this century, a small oil person from West Texas, who knew a lot about energy, vowed to solve America's energy problem.

Six years later, anormously inflated energy bills and ever increasing oil imports "Caught Up With people of America." While average American bore the burden of esclating energy cost, America's dependence on foreign oil increased from 56% to 65% of the U.S. oil consumption during this period.

Democrats, jubilant and vibrant after regaining control of the congress, emphatically declared, "Democrats have a New Direction for America. We will energize America with farmers fueling our energy independence. We will invest in the Midwest, not the Middle East, to end our dependence on Middle East oil in 10 years - developing American alternatives, including biofuels, and promoting energy efficiency and advanced technologies. We will also investigate and punish price gouging, eliminate billions of subsidies for oil and gas companies and use the savings to provide consumer relief. Democrats' commonsense plan will help bring down skyrocketing gas prices and achieve energy independence."

According to the plan, the small renewable fuel will generate more than 200,000 jobs and displace more than $10 billion worth of crude oil. Improvements in infrastructure and electricity options and standards will also encourage much greater use of alternative fuel and hybrid vehicles. Democrats want to make energy more affordable for residential and manufacturing use. A national commitment to efficiency, renewably-generated electricity, and a massive investment in advanced
energy technology would reduce consumers' electricity and fuel bills by more than $60 billion per year by 2020. Finally, extending energy efficiency and renewable incentives would lower the demand for natural gas and free up natural gas for other uses.

Well, Democrats have demanded three terms to prove themselves. But infact more than half and the most unpopular part of their project is already completed by President Bush by taking oil prices to the levels where alternate fuels sound viable.

Where did Mr. Bush go wrong? He had this dream and vision to dig into the protected coastal areas to free America from dependence on foreign oil but to his bad luck and some stern environmentalists, Democrats rocked him out of his bed before his dream could see the daylight...

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