Opec has decided to cut oil production to stop oil prices dropping below $100 a barrel.
Fortunately, Saud Arabia may not go along with other cartel members.
But why were prices dropping from their $140 or so peak?
It's all about something the proponents of peak oil don't understand- the market.
Oil prices dropped because the world could not afford to pay such high prices, their slowing economies started using less, thus the price fell.
Unlike what the greenies say, oil won't run out suddently, it's use will eventually decline and alternative fuels will be used more. The market will take care of the problem.
Despite what we might think, governments understand markets too.
Why else has Uncle Helen pushed through her beloved Emissions Taxation Scam that will add 7c a litre to the price of petrol. She wants us to drive less. Same with all the other uses of fuel. She wants us to fly less, transport less, heat less and use less fuel in making stuff.
The cost, as noted this week, will be $60 a week in higher costs to families, and $90 a week in lower wages as the effects work their way through the economy.
Whether we agree with 'climate change' theory or not,this is what Uncle Helen has done.
Meanwhile, over in the USA, the Republicans have picked a VP candidate from an oil-rich state.
Sarah Palin understands the needs of secure energy supplies for the benefit of Americans and the US economy.
Obama and the Democrats will no doubt continue their calls to see fuel supplies locked up for posterity, but OPEC's move will help the Republicans even more.
No way should the US or the economies of any civilised and developed economy should allow themselves to be held to ransom by greedy Arabs , aggressive Russian bears or Venezuelen dictators.
As the saying goes, drill here, drill now, pay less!