The amount of research and innovation that comes out of oil companies is
actually fairly remarkable, (Texas instruments, started as a geophysical company)
Western Geophysical was the worlds second largest consumer of magnetic tape for many years,
and directly contributed to storage technology.
To be fair, much of the innovation within oil companies is not loudly advertised,
but kept close as intellectual property, but that does not mean it has not happened.
The Saudi prince may have one point though.
In 2010 the Navy said it can make synthetic jet fuel for between $3 and $6 a gallon.
Audi, has not set up an old refinery to make E-gas.
For the sake of discussion, $3 a gallon gasoline, is roughly equal to $120 barrel oil.
So far this process has been looked at by several Universities, and the Naval research labs,
The best and the brightest in the petrochemical world, work for the oil companies.
If they can improve the process to make man made fuels below say $1.5 a gallon,
Organic oil will only be useful as a feedstock for plastics, and other uses, not fuel.
graph shale oil production cost.jpg
a cartel is only as strong as the glue that binds them together. oil, not so much. thank goodnessLet's not forget either that this "glut" of oil reflects just an extra day or two of world consumption and so the price could jump back relatively quickly... If it's desired.
Final note, cartels are good only for the members of the cartel, any benefit to the "customer" of a cartel is coincidental.