The End of OPEC?

Ladies and Gentlemen, boys and girls, children of all ages...

I want to apologize for my random angry phone calls on Saturday morning. Many of you received them, hearing me whine and complain that gas went up 20 cents overnight in Lawrence. I went to bed on Friday at 3.49 and woke up Saturday morning to 3.69. I want to apologize for the base, dastardly things I had to say about OPEC and its constituents. While true, they were still rather harsh and vindictive. Because, truthfully, I don't even know the marital status of their parents...

The recent spike in fuel costs is the result of OPEC's decision to cut the "overproduction" of oil that has led to a "drastic" decline in oil prices. (I have yet to see said decline at the pumps, however.)

Side item: Why do spikes in crude oil prices hit the day after they are announced when the price of oil is based on projected costs 6 months down the road, yet the decline in oil prices never seems to make it to the consumer? Why can companies like Exxon post record profits every quarter for the last two years and yet still claim that they are unable to come out on top? They claim to be putting up record percentages in exploring alternative fuel sources, and yet it only comes to 2% of their overall profits, less than any other company in the market. Can I justify to the IRS that I am "reinvesting" my own personal assets in "alternative economic stimuli packages?" That's got audit written ALL over it! Can I charge my students a processing fee for my ministry job due to the rising demands on my time and abilities, and the dwindling supply of my time/energy? If so, sign me up!

Ok, side note over. OPEC decides to cut the "overproduction" of oil due to a dilution of the market and their inability to turn a suitable profit. I am sure they can dry their tears on the extra dollar bills and Euros they gained from their recent market gouging. Similarly, both Chavez/Venezula and Putin/Russia have threatened to cut off oil flow to America and Europe as a result of their incessant political ravings. (Has anyone noticed that they sound slightly Stalin-esque when they both speak?) So... all I have to say to OPEC, Russia, and Venezula is this: Go drill yourselves somewhere else, cause we are tired of being probed by you!

Now, hot on the heels of this announcement is the decision by Saudia Arabia to withdraw from OPEC. (http://blogs.moneycentral.msn.com/topstocks/archive/2008/09/11/the-death-of-opec.aspx?GT1=33009)
They decided to NOT cut their oil production, but instead to continue at current capacity. Many political pundits and market analysts are heralding this as the end of the reign of OPEC over the global oil market. Let's hope. But I think one of two things will occur: either the diminished prominence of OPEC OR an attack on Saudi oil refineries. (One is probably more likely than the other.) Additionally, Brazil announced the finding of a second major oil discovery, enlarging the first from earlier this year (which is reported to be the largest in the world!)

Let's hope the Saudi's audacity will send shock waves throughout the global oil market, and the Brazilian discovery will spell the end of the Middle Eastern dominance in black gold as we know it.

If not, can I at least get some Saudi tea and Brazilian Carneval beads with my HUGE gas price increases at the pump?