Regulate Oil Prices Now !!

Forget the world economy,  there is no greater threat to world peace than the price of oil.

Whilst world oil prices keep rising so manically, there is only one possible outcome, more wars and more extreme wars. We are like lemmings marching off a cliff.

The current market price model is a complete failure.

The market has only two inputs to set prices and that is supply and demand. At the moment supply is completely unknown and demand is hysterically driven by fear. These are two widely irrational inputs that are rendering the market mechanism almost useless in determining a meaningful price for a resource that is perhaps the most important to the world economies, not to mention lasting world peace.

SPECULATORS RESPONSIBLE FOR UP TO 50% OF OIL PRICE

It has been estimated that up to 50% of the price of oil is due to speculators. This is a group of people that are investing in the price of oil rising. How do you get the price of oil to rise the fastest? Create tension or war in oil producing countries.

THE FIRST TO PAY ARE THE POOR

Whilst rich countries and rich people can fairly easily pay more for the luxury of driving to work rather than taking the train. Or indeed, the richest actually profit from the rise in the price of oil. It is the poor that use oil for their daily necessities that are hit the worst.

WHY NOT A QUOTA SYSTEM?

Rather than the price inevitably rising with the market and the poor again being excluded, why not a quota system that when breached consumers pay double or triple and the proceeds go to sustainable alternatives?

THE MARKET IS A GOD - dont blaspheme!

There are some things in a market economy that cannot be mentioned, that are taboo, that are downright blasphemous. One is to regulate the price of anything. People cannot even entertain the idea that the market can't work things out for itself. The market is a God! If we can't rely on the market, than what can we rely on?

It is absolutely absurd!

To regulate the price of oil right through to transition to sustainable alternatives is the only sane thing to do. The market has never been here before and it is scared! Panicky! Downright dangerous! It will not mean we are communists, it will just mean that we are pragmatic. The market is an economic mechanism nothing more and nothing less. It is meant to serve us, not us serve it. The world needs a transitional solution that is orderly and practical and currently the market simply is incapable of offering this.

PRICE REGULATE UNTIL TRANSITION TO SUSTAINABLE ALTERNATIVES

The time has come for a world body such as the UN or an expanded OPEC to regulate oil prices. OPEC should not just represent the suppliers, it should also have representatives from consumer countries. The price regulateing body should set a fair price for oil that reflects scientifically determined supply and support an overall transitional strategy to sustainable alternatives.

There would be so many stabilising benefits to world economies as they would be able to scientifically manage the transition. The problem is that we are relying on guesses from producer countries as to how much oil they think they have left. No wonder people are scared. How can businesses make any sort of long term modelling when they have no idea what price they will be paying next year or the year after that, let alone five years in the future or 10-20 years when oil supplies may have dried up.

We believe that the only gains from oil prices remaining market driven are short term for oil companies, governments and speculators but belie the major world disasters of ongoing wars and disharmony.

It is time for people to stand and say ‘enough is enough’. Let’s get our planet organised. This is a major issue for the whole planet and we need a whole planet strategy.

It is suggested that oil prices be set at $100 for at least the next two years to enable stability and the establishment of the price regulateing body.

The price regulateing body should, as a matter of urgency, work on determining how much oil is left and how quickly it should be transitioned taking into account other planetary issues such as global warming, availability of sustainable alternatives etc.

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