backtop


Print 59 comment(s) - last by sorry dog.. on Jun 3 at 10:06 AM


Saudi Prince Al-Waleed bin Talal  (Source: Forbes)
Saudi Prince Al-Waleed bin Talal wants oil prices in the $70 to $80/barrel range

Gas prices in the United States have been taking a decidedly downward turn in the past month (down 20 cents in three weeks from a national average of $3.97 per gallon to the current $3.78 per gallon). However, gas prices are still much higher than a year ago when the national average was $2.74 per gallon according to GasBuddy.

There are some that are calling for lower oil prices to help ease prices for consumers, and those calls are coming from an unlikely source. Saudi Prince Al-Waleed bin Talal, whose country is one of the founding members of OPEC, wants to see oil prices drop dramatically. In fact, Talal wants to see prices fall down to roughly $70 to $80 per barrel (current prices are hovering around $100 per barrel).

Talal's reasoning for wanting lower prices comes from an increasing interest from countries like the United States and global auto manufacturers to develop vehicles that don't require gasoline or diesel fuel to operate. 

"We don't want the West to go and find alternatives," said Talal in an interview with CNN's Fareed Zakaria. "Because, clearly, the higher the price of oil goes, the more they have incentives to go and find alternatives."

President Obama is pushing for federal agencies to ditch large, fuel hungry vehicles like Suburbans and Tahoes for more fuel-efficient compact and subcompact cars wherever possible. The U.S. government fleet is also taking baby steps with purchases of the all-electric Nissan Leaf and the partial electric vehicles like the Chevrolet Volt.

And for the full-size SUVs that are still needed in the government fleet, the Obama Administration wants increased use of E85 fuel that would further lessen our dependence on foreign oil sources to sustain our transportation needs. 

The overarching goal, however, is for automakers to develop vehicles that can travel much further on a gallon of gasoline, boosting CAFE averages to 35.5 mpg by 2016. This move will come by manufacturers producing more vehicles that achieve 40 mpg or higher, and by stepping up the efforts with electric vehicles like the Ford Focus Electric and the Tesla Model S

So it should come as no surprise that Talal doesn't want to see the U.S. gravy train come to an end.  If everyone is driving around in 50-mpg vehicles, there will be less of a need for foreign oil. If everyone is driving around in electric vehicles, well OPEC is in serious trouble. 



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: I'm intrigued to know.....
By rudy on 5/30/2011 10:58:24 PM , Rating: 2
Because in the US gas and vehicles have been cheap for years. But one thing has not been cheap, that is labor. This is why we are so heavily industrialized. Lots of people also own very expensive tool sets. You ask why not just hire someone to fix the door or build the porch. Well it is all the same it is about about the ability to do what you need when you need.

The only way that will ever change is if 1 of 2 things or both happen. Either personal wages start coming down heavily so people can no longer afford large powerful vehicles or gas prices go way up doing the same.

I mean people from out of the US look at it as wasteful but then again when I have been to any other country they all want the stuff we have. Most are unwilling to admit it, but you see them moving toward that those who can afford it anyway.

We will probably see a long term correction to our behavior and I am not saying what we do is right but all human populations will do it given the chance.


"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki