The crisis in Middle East (Iran) has stimulate the soaring oil price.Not to mention the shutdown of nuclear power plants in japan has shifted the demand for oil and gas.The oil price is predicted to reach the level of $135 per barrel this year.
The worry about nuclear power plant has draw the trend of alternative energy backward. It is reasonable for japan to reevaluate their nuclear power plant since they are in the middle of the ring of fire which earthquake strikes daily. But it is very sad to me to see that Japanese reevaluation raised other countries agony- which are actually save to use nuclear power plant. The consequence is the demand for oil increases and accelerate the depletion of oil resources. While some people are screaming for less oil usage, others are increasing the consumption on oil. I believe the use of nuclear power plant should be maintained.
The increasing oil price in the middle of economic crisis around the globe will lead to a calamity. I predict in next 8 month many European and Asian countries fall in to monetary crisis as the oil price jumps. Some countries will severely affected by the oil crisis. Actually it is an opportunity to develop alternative energy. However, I doubt there will be enough time.
For Indonesia, the controversy on fuel subsidy or the conversion from oil fuel to liquid gas must be solved immediately. The delay will only hurt the budget as the size of subsidy keeps increasing. Indonesia must quickly move to reduce the consumption of oil. With all the resources we have such as coal and gas, it should be not a problem to free Indonesia from dependency to oil.
