OPEC sees threat from 'alternative energy'

Economic models predict that as the price of non-renewable fuels rise, alternative energy sources will become more attractive and existing producers will try to find ways to extract those hard to reach barrels.  If the models are right, we would expect OPEC to see the writing on the wall, right?  Well...

...from WorldTribune.com (OPEC sees threat from 'alternative energy').

OPEC plans to establish a research and development institute in an effort to improve oil production technology.

"Our competitors, the alternative energy providers, are intensively pursuing research programs aimed at reducing the domination of oil and gas in the global energy market," Abdullah Salatt, Qatar's representative to OPEC, said. "Likewise, we should have our own independent programs."

Looks like we're getting closer and closer to that transition to 'alternative energy'.  Here's more anecdotal evidence in the hybrid market...and more in the electricity market...

Comments

[Paco NATHAN]

For the politically incorrect question of the day...

How likely would it be that the economic implications of renewable energy advances lead an extremist cleric to issue a fatwa against green businesses?

[gmoke]

As I recall, Sheik Yamani (spelling?), the spokesperson for OPEC during the 1970s oil crunches, had quite a lot to say about the decline of oil and the rise of alternatives. Might be good to look them up sometime.

[Paco NATHAN]

That's a good point, gmoke - Yamani is an interesting character. Here are a couple of pieces from the Guardian where Yamani, a founder of OPEC, discusses peak oil and renewables:
http://observer.guardian.co.uk/business/story/0,6903,421888,00.html
http://www.guardian.co.uk/worldsummit2002/earth/story/0,12342,777666,00.html

His famous quote appears to have been circa 2000: "The oil age will come to an end, but not for lack of oil, just like the stone age came to an end, but not for lack of stone."

Of course, one might say that Sheik Yamani is somewhat on the wrong side of the fence from today's extremist clerics - being so close to House of Saud, Shah of Iran, et al. For that matter, Yamani has also claimed that Kissinger architected the 1970s oil shortages to try to force an economic context similar to peak oil.