What Is Driving the High Oil Prices?

Despite high oil prices and diminished spare capacity, OPEC is repeatedly refuses to increase production beyond current levels, alleging that the "oil market is balanced" and "there is no threat to or crisis in supply."[7] The reality, of course, is quite different. OPEC and non-OPEC exporters insist on limiting the majority of new oil and gas projects to their NOCs, to the detriment of international oil companies and consumers world wide. They neglect or actively resist the development of modern natural resources legislation, court systems, transparency, and energy sector supervision by elected officials, as well as scrutiny by independent media. As a result, they prevent increases in production and disallow necessary investment by the international oil companies, which have the expertise to bring the needed supply online. This trend is set to increase: Over the next 20 years, 90 percent of new hydrocarbon supplies will come from countries that provide privileged access to national oil companies.[8] Thus, oil prices can only go up. Read more....