[OPE-L:6013] Re: rentier state (Saudi Arabia)

From: Gerald_A_Levy (Gerald_A_Levy@email.msn.com)
Date: Tue Sep 25 2001 - 06:42:32 EDT


In [6012] Rakesh quotes from Chibuzo Nwoke's Third World Minerals and
Global Pricing  (Zed, 1987):

> "The actual world market price of crude oil is thus governed by the
> individual  price of coal production and the great demand for coal in the
> world energy  market <snip, JL>  This reward, or increasing
> shares of absolute rent, could be obtained if the OPEC organization
> priced oil  just below the price of the cheapest substitute for oil, that
is,
> coal.

Coal is not a substitute for oil.

E.g. oil-heated factories and homes can not converted to coal unless there
are new furnaces and exhaust systems; cars, trucks, boats, and ships powered
by gasoline or diesel oil can not be powered with coal; kerosene lamps and
stoves, etc. can not be powered by coal; plastic and fiberglass products,
which are oil-derivatives, can not be derived from
coal; etc.

In solidarity, Jerry



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