Planet Gore

Cut, Baby, Cut

OPEC cuts 1.5 million barrels a day and oil prices respond by heading toward $60 a barrel:

Crude oil futures plunged to $63 despite OPEC’s 1.5 million barrel production cut, Bloomberg reports, as fears of cratering demand trump OPEC’s bid to tighten supplies. More on OPEC’s decision here.

Falling oil prices may be pinching big oil producers, but don’t shed too many tears: High prices over the last year have given big petro-states a $2 trillion piggybank, in the WaPo. Mexico is scrambling to increase production, but new oil laws likely offer little upside, in the NYT. And the combination of lower prices and the credit crunch is causing casualties. Suncor delays an oil sands project thanks to shaky economics, reports the WSJ (sub reqd.).

And not even Gazprom is immune, also from the WSJ (sub reqd.): “When a state-backed natural-gas monopoly with a lock on Europe’s central heating worries about funding, it is clear that the credit crunch is indiscriminate.”

Sen. Barack Obama still calls energy policy his top priority — well, number-two at least — in an interview with Time magazine (HT): “There is no better potential driver that pervades all aspects of our economy than a new energy economy … That’s going to be my No. 1 priority when I get into office, assuming obviously that we have done enough to just stabilize the immediate economic situation.” The economic gloom may be a short-term setback for clean energy, but oil prices will go up again, and with them the fortunes of the clean-energy sector, at Energy Outlook.


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