G8 Goes Begging for Oil

Seems as if the leading industrial countries are finally getting a bit worried about oil prices after the big $11 jump in last Friday's trading.

The Group of Eight rich nations met in northern Japan with representatives from China, India and South Korea to discuss oil and gas markets, energy investment, energy security and climate change amid deepening concerns about the world economy.

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"The situation regarding energy prices is becoming extremely challenging," Akira Amari, Japan's trade and energy minister, warned his colleagues Sunday. "If left unaddressed, it may well cause a recession in the global economy."

Five top energy consumers -- the United States, China, Japan, South Korea and India -- urged oil producers on Saturday to boost output to meet growing demand, while pledging to develop clean energy alternatives and increase efficiency.

I've got to laugh at that last little bit about asking for producing nations to boost output while we increase efficiency and look for alternatives. Sure. The dirty little secret is that there really isn't any spare production capacity. And even if there were, there is no incentive for OPEC nations to comply to lower prices as they can sell as much as they can pump out at these already inflated amounts.

As for the industrialized countries promising to "really, really be good and increase efficiency this time and we really, really mean it" that is just a complete joke. Anyone remember Pres. Carter 30 years ago pledging that the US would launch a massive effort to make us energy independent in 25 years? That lasted for just a brief moment until Reagan moved into the White House, ripped the new solar panels off the roof, and promised an eternal supply of cheap imported oil.

The window of opportunity has closed to use the relative abundance of cheap petroleum to develop technology and infrastructure necessary for alternative and clean energy. Yes, there is some interesting technology out there but how will we keep our industrial energy-intensive world going in the meantime?