(′゜Д゜`)英字新聞
Energy-efficient tech can stem oil price hikes
There has been no end to a continued rise in crude oil prices. Crude futures prices are setting new records daily and soared to $135 per barrel on the New York market Wednesday.
There is no particular bullish factor in the market. The continuing price hikes can be attributed to an uninterrupted flow of speculative funds into the market. Some market watchers warn that crude oil prices could exceed $150 if this goes on.
When the price reached $100 a barrel, it aroused concerns that high crude oil prices would dampen the world economy. If oil exceeds $150, further adverse effects cannot be avoided.
To prevent crude oil prices rising further, major oil-consuming countries must try harder to save energy and promote the use of alternative energy sources.
International cooperation to deal with the issue of energy use will be a significant item on the agenda at the summit meeting of leaders from the Group of Eight countries to be held in Toyakocho, Hokkaido, in July.
The annual summit meeting of leaders of major countries started originally as a forum to discuss measures to tackle the first oil crisis in 1973.
At the upcoming G-8 meeting, too, world leaders are expected to send a strong message to the world's markets that major countries will take concerted actions to deal with this problem, thus discouraging speculators from capitalizing on the situation and halting crude oil price hikes.
===
Glut of global funds
The crude oil price exceeded $100 a barrel in January. It reached $120 a barrel in early May and increased by $15 over the following two weeks or so.
The principal factor behind the rises is a global glut of money. Since the United States moved to further loosen its monetary policy to try to stem the subprime loan crisis, increasing amounts of cash have been entering the market. These surplus funds are moving into crude oil and grain markets in search of profitable investments.
===
Demand on the rise
Changes in the structure of global demand also have contributed to recent price hikes. Economic growth in China, India and other developing countries have seen a sharp rise in global energy demand.
Coal and natural gas prices have sharply risen recently, too. This has led to high crude oil prices in what amounts to a vicious circle.
Is there any way to break this cycle of price hikes?
Some economists propose that service charges or tax on crude oil futures trading should be raised to curb the flow of speculative money not related to actual demand.
The proposal is worthy of consideration, though its implementation could face technical challenges.
At the time of the 1973 oil crisis, more than 70 percent of Japan's electricity was generated from oil. Today, the figure is 10 percent, and Japanese manufacturers are among the most efficient in the world.
It is said that many developing countries could drastically improve their energy efficiency if they introduced energy-saving technologies comparable to those in Japan.
Both the private and public sectors in Japan should jointly extend technical assistance to developing countries, which would help them depend less on oil and save energy. That would go some way toward preventing energy prices in the world from skyrocketing.
