R. James Woolsey, the former director of Central Intelligence and a current member of the Fuel Freedom board of advisors, went on the Jacki Daily show recently and had some interesting observations about the global sell-off in the oil market.
He said the price drop has been particularly hard on oil-exporting nations that need a high price to balance their budgets and meet generous public benefits. “Russia really needs oil up around $120 a barrel in order for its society to function,” he said.
He said nations like Russia should diversify their economies so they aren’t as reliant on oil prices for a thriving economy. “Russians don’t make anything. When was the last time you were in a store and you bought something that says ‘Made in Russia’? I guarantee you it doesn’t exist.”
Despite low prices, many experts predict that the global demand for oil will resume its upward trajectory, making fuel diversification essential, Woolsey said.
“Let the alcohol, the methanol producers particularly, and the gasoline producers and the natural gas producers, biodiesel producers … let everybody play.”
Woolsey, who served as CIA director under President Clinton, also is a member of the U.S. Energy Security Council. You can read this story quoting him about the vulnerability of the U.S. power grid in Forbes.