OPEC Rejection Reinforces Need for U.S. Energy Strategy

Nov. 14, 2007

WASHINGTON, Nov. 14 /PRNewswire-USNewswire/ -- Securing America's Future Energy (SAFE) today restated the importance of a U.S. strategy that would boost energy security. This call comes on the heels of OPEC's decision not to raise output levels to stem rising prices for oil.

"Even beyond the ranks of OPEC, the 21st-century oil market is far removed from the free-market ideal, with as much as 90 percent of all oil and natural gas reserves being held by national oil companies that are either partially or fully controlled by governments," said Robbie Diamond , SAFE's founder and president. "The global supply of oil is shaped by collusive practices that would be considered illegal under U.S. law.

"Given these realities, Americans must accept that market forces alone will not solve our oil problems. Instead, government must spur and, in some cases, require private-sector responses. In light of this market failure, government intervention is not merely desirable -- it is essential."

Today, Saudi oil minister Ali Naimi declared that OPEC will not boost output prior to the group's meeting next month, despite U.S. Energy Secretary Samuel Bodman's appeals to immediately increase production.

Naimi's opinions notwithstanding, OPEC enjoys a dominant supply position in today's global oil market and considerable pricing power as a result. OPEC, an avowed cartel, pumps more than 40 percent of daily oil production and controls three-fourths of proved reserves.

Securing America's Future Energy (SAFE) is an action-oriented, nonpartisan organization that aims to reduce America's dependence on oil and improve U.S. energy security to bolster national security and strengthen the economy.

SOURCE Securing America's Future Energy

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