Last week, President Obama announced that the U.S. and its partners in the International Energy Agency will release 30 million barrels of crude oil in the next 30 days. This decision was prompted in part by the loss of oil produced by Libya, along with raising gasoline prices.
AJ Discala, CEO of The Broadsmoore Group believes that releasing oil doesn’t deal with the fundamental problem at all. “At best, this will provide a temporary and limited tick down in what people are going to have to spend on gasoline. The real problem,” says AJ Discala, “is depending on oil for transportation. As long as we do that, OPEC’s going to run things because it gets 78% of the reserves in the world and they can lift oil for a few dollars a barrel. Meanwhile, it takes us tens of dollars a barrel, and we have a lot less of it to pull from.”
“We’ve got to find some way to break up OPEC’s dominance of the oil market,” Discala continues, “and the only way I know to do that is to break up oil’s dominance of transportation.”
In AJ Discala’s series of green energy articles, the CEO will describe four fuels for transportation that are cheaper than gasoline and diesel, and that can be implemented using existing infrastructures. In the second article, AJ will discuss the merits and viability of broadening the use of electric and hybrid vehicles, as well as increasing the use of natural gas.