Energy
prices
at
new
highs
Port Spain
Petroleumworldtt.com
28 07 07
With attention now almost completely focused on
the upcoming general elections, politicians are
saying little or nothing about key economic matters
such as
energy markets and the prices of oil and natural gas.
However, once the electoral process is over and
a new government takes office the issue of energy
prices again will take centre stage, and with good
reason because the country's economy depends largely
on the buoyant energy sector.
Last week, crude oil prices hit a record of US$90
a barrel, while natural gas futures averaged approximately
US$7.50 per 1,000 cubic feet.
During the past couple of weeks, oil prices have
soared on fears of a Northern Hemisphere winter
supply crunch, a weakening US dollar and rising
tensions between Turkey and Kurdish rebels in Iraq.
Political tensions in Iran, Saudi Arabia, Nigeria
and Venezuela, while not a factor in the latest
surge, in the past also have impacted the price
of oil. Prices have quadrupled since 2002 because
of strong demand from fast-growing economies such
as China and India allied to those political tensions.
Some market analysts already are predicting that
a price of US$100 a barrel may become a reality
in the not-too-distant future.
High energy prices as well as oil supply and demand
matters certainly will be on the agenda for discussion
at the Organisation of Petroleum Exporting Countries
heads of state meeting scheduled to be held on
November 17 in Saudi Arabia. But analysts have
said that the upward trend in oil and gas prices
will continue into the foreseeable future.
If that is correct, then Trinidad and Tobago is
poised to see its revenues from the energy sector
climb to new highs, providing a new government
with even greater financial resources. This will
mean that funds would be readily available for
the authorities to put in place sound policies
aimed at reducing poverty, improving basic services
and providing adequate healthcare and education
for the population. The government must spend and
spend wisely.
Story from the
Trinidad Express
Wednesday,
October 24th 2007
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