Letters to the Editor

Government should hedge on oil now!

Thursday, April 12, 2018

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Dear Editor,

To protect the fragile economic progress the country has made in the past few years (under both parties) the Government should immediately seek a favourable hedge on the price for oil. There are a number of clear indications that oil price is set to make a sprint, and we should not rule out over US$100/barrel:

1. Former US Secretary of State Rex Tillerson, who is an oil man, was fired so that he will not be seen as the influence that pushed the oil price.

2. Michael Pompeo, former Central Intelligence Agency chief, who is known as being against the Iran deal, has been appointed as secretary of state.

3. Venezuela's oil is locked down under sanctions and Iran's will soon with the nuclear deal being set for revocation.

4. Iran has been fingered in the USA-instigated fabrication of a chemical attack in Syria which will help to support the USA's call for sanctions.

5. Donald Trump has authorised the release of a portion of the USA's strategic oil reserves for sale. This is a clear indication that oil is not the future energy source of choice.

6. USA is currently the second-largest producer of crude oil and rapidly moving to first place; hence, high prices suit them.

7. And, most importantly, oil is rapidly moving towards becoming obsolete, which means those who have it have to pump as much as they can, as fast as they can, before it becomes unwanted under the ground.

New energy technologies on the horizon cannot be stifled — as happened with Nikola Tesla a century ago — due to wide knowledge spread. When I speak of technology I am not talking about wind and solar; I am speaking of game-changers.

These are but a few of the significant indicators, so it is critical that the Government do the right thing and protect our interest.

Obviously, based on what I have said above, we can stop wasting effort in exploring for oil. A new energy day will soon be dawning.

George Scarlett

george.scarlett@cwjamaica.com

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