Oil prices rising - Pickersgill urges conservation By Garwin Davis, Staff Reporter A CLOUD of uncertainty is forming around the local petroleum sector as the possibility of a strike by the United States against terrorist targets in the Middle East becomes more real. Already, industry players are preparing for serious repercussions for the sector. Not only would oil prices be affected, but the nation, they say, faces a potential energy crisis. "One of the effects of the terrorist attacks in the United States has been an increase in the price of oil on the world market," Minister of Mining and Energy Bobby Pickersgill said yesterday. "We saw movements from US $27 per barrel to US$30. It has since levelled out at $29, which we are hoping can be maintained. However, the reality of the situation is that these are not normal times and anything can happen. We are an oil-based economy and we do not produce any oil so this is a situation we have to monitor carefully." Last week's attacks on the World Trade Center and the Pentagon triggered a sharp increase in oil prices on the global market which was attributed by sector analysts to a "panic reaction." The Minister urged the nation to conserve. "We have to conserve on oil and energy products as we don't know for sure what we are up against." Mr. Pickersgill added that he was encouraged by a statement coming out of OPEC following last week's attacks where members of the powerful oil producing coalition gave a reassurance that there will not be a shortage of oil regardless of a protracted war in the Middle East. The Minister, however, conceded that the picture could change considerably if oil facilities in the region were sabotaged by terrorists as a response to America's retaliation. Petrojam's marketing executive, Gladston Robinson agreed. According to him, his company was also encouraged by what was coming out of the Organisation of Petroleum Exporting Countries (OPEC), but was also wary that things could change drastically. "This is a period of uncertainty," he said. "This is not business as usual. I am asking people to cut out the joy rides for a while conserve on home consumption and remember that all of our energy comes from petroleum." Mr. Robinson said that if the United States only targeted specific areas rather than engage in indiscriminate bombings then the sector should not feel much of a repercussion. "Oil prices are as volatile as fire," he continued. "Any little trouble can make prices move dramatically. I am hoping for the markets sake that if the U.S. retaliates it will be swift and from a coalition standpoint. A unilateral and long drawn out battle will definitely have an adverse effect on us." Dave Slaughter, assistant general manager of Texaco, noted that the uncertainty of the situation was making a lot of people nervous. "The drums of war are beating and there is a lot of uneasiness right now," he said. "We are hopeful, however, that we do not see prices go screaming through the roof."
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