Technology should save oil, Kuwaiti official tells audience

By SEAN BARRON
VINDICATOR CORRESPONDENT
YOUNGSTOWN -- For those who are angry about high gasoline prices and inclined to target the Organization of Petroleum Exporting Countries for sole blame, they would do well to realize that the situation is more complex.
"OPEC's strategy is to have reasonable prices," explained Issa M. Al-Own, undersecretary for the Ministry of Energy (Oil) in Kuwait.
Only about 25 percent of what you pay at the pump goes directly to OPEC countries; much of the rest is divided between profits for U.S. oil companies and the American government via taxation, he said.
Factors such as violence in Venezuela and Iraq, as well as natural disasters such as Hurricane Katrina that caused disruptions in productivity, also have large effects on prices, Al-Own said.
Al-Own predicted that gas and oil prices will remain high for the foreseeable future, and that stepped-up efforts should go toward developing technologies to save oil.
He spoke to the press about oil prices, production and projections as well as other related topics after Saturday's commencement ceremony at Youngstown State University. Al-Own was on hand to see his 23-year-old son, Ahmad Al-Own of Kuwait, receive his degree.
OPEC's large reserves
Al-Own noted that OPEC countries are responsible for about 40 percent of the world's oil production, but have larger reserves than non-OPEC countries such as Russia, Norway and Mexico, which produce the rest.
As a result, when it comes to controlling prices, OPEC will prevail in the long run, Al-Own predicted.
The oil expert pointed out that, unlike in the past, geopolitical forces and natural disasters worldwide affect prices more profoundly than supply and demand. More refineries need to be built and it's imperative that they are "environmentally friendly," he noted.
Shortly after the 1991 Iraqi invasion, Al-Own was able to help reconstruct many oil and gas facilities damaged in the war and work toward establishing an adequate supply of oil for his country and for exporting.
That year, Iraqi soldiers set fire to a portion of Burgan Field, discovered in southeastern Kuwait in the late 1930s, and one of the world's largest oil producers. Nevertheless, there were no significant depletions of oil reserves or disruptions in production capacity, and most of the damaged sites were rebuilt, says the Web site www.en.wikipedia.org.
Support for alternatives
Kuwait supports more uses of renewable energy and a decrease in harmful emissions, Al-Own added.
To that end, Al-Own continued, Kuwait is increasingly investing in cleaner fuels and is building a refinery designed to fight dangerous emissions from fossil fuels.
"People need to change behavior regarding energy uses," he said. "It's time to change life patterns, especially in the transportation sector."
Kuwait produces around 3 million barrels of oil a day, of which about 12 percent is being sent to the United States; most is going to China and other Far East countries, Al-Own noted. His country's goal is to produce 4 million barrels per day by 2015 or 2020, Al-Own said.
Iraq's future
Al-Own noted that stability in the Middle East and elsewhere is vital for the world's oil production and peace in the region. Removing former Iraqi president Saddam Hussein was "better for [Iraq], the Middle East and the world," he said.
Many Iraqis age 20 to 45 who face the challenges of rebuilding their country "knew nothing but war," Al-Own said, adding that picking the right Cabinet members in that country "will push peace forward."
"Iraq is not used to democracy. No one could [make political decisions] but Saddam and his close friends. They will need a clean and brilliant leader" to steer Iraqis toward embracing democracy, Al-Own said.
Ahmad Al-Own was among the more than 1,200 graduates and undergraduates to receive degrees. The younger Al-Own received his bachelor's degree in chemical engineering. He transferred to YSU from the University of Idaho.