The holders of the gas fields are now emerging and joining together as one cartel – much like OPEC, they, like the oil producers, want all the money you can pay.
Iran, Libya and Venezuela are among the countries attending the Gas Exporting Countries Forum, which observers say is fast emerging as an OPEC-style gas-producers’ cartel. The gas group, commonly called GECF, would control the vast bulk of global supplies and could fix prices for the rest of the world.
And because of rising global production costs, Putin said, prices will only get higher.
“Costs, which are necessary to develop the [energy] sphere, are rising sharply,” Putin said. “It means that despite the global financial crisis and price drop for energy resources, the era of cheap energy, including cheap gas, is coming to an end.”
With the world turning away from oil, and Putin plus his fellow gas barons know that, at least in the short term, the easiest fuel and somewhat cleaner fuel will be natural gas.
Although the US has an abundance of this fuel – this only goes to show that the rest of the world needs to develop renewable energy – and post haste.