Rapid growth and development in the emerging global economies is responsible for significant upward pressures on demand for crude oil, as well as a full range of commodities, such as steel, copper, cement, grains, coal, and rubber, according to information presented July 16 at the USEA Supply Energy Forum by Red Cavaney, American Petroleum Institute (API) president.
The triple-digit increases in this decade show that the phenomenon is not unique to oil and natural gas, nor to the United States, he added.
"The current cycle, however, is particularly problematic for our country," Cavaney said. "This is due, in part, to the fall in the value of the dollar and to the unusual rush of investments into commodities, as a result of poor returns in the equity and bond markets and in real estate. These factors have contributed to higher commodity prices, particularly for those whose purchase power is in dollars."
He pointed out that more efforts are required to meet US energy needs. "Many people fail to recognize that the United States is the third largest oil producer in the world," he said. "What we do, or fail to do, impacts not just our country, but the global energy marketplace as well. We are the world’s only oil and natural gas producer whose government restricts access to its domestic energy resources. As a result, American consumers are being asked to bear a costly and unnecessary burden as world energy demand skyrockets."
He added: "It is no longer the energy world of our parents. A global paradigm shift is underway, involving and impacting energy. It is our responsibility to act. We can, and must, do better than the record of the past several decades. It is imperative that we all work together-- industry, government and consumers--to secure our nation’s energy future. Time is of the essence."
To see Cavaney's remarks in their entirety, click here for the API Web site.