[OPE-L:6030] Re: Re: rentier state (Saudi Arabia)

From: Paul (clyder@gn.apc.org)
Date: Sun Sep 30 2001 - 16:52:20 EDT

On Tue, 25 Sep 2001, you wrote:
> In [6012] Rakesh quotes from Chibuzo Nwoke's Third World Minerals and
> Global Pricing  (Zed, 1987):
> > "The actual world market price of crude oil is thus governed by the
> > individual  price of coal production and the great demand for coal in the
> > world energy  market <snip, JL>  This reward, or increasing
> > shares of absolute rent, could be obtained if the OPEC organization
> > priced oil  just below the price of the cheapest substitute for oil, that
> is,
> > coal.
> Coal is not a substitute for oil.
> E.g. oil-heated factories and homes can not converted to coal unless there
> are new furnaces and exhaust systems; cars, trucks, boats, and ships powered
> by gasoline or diesel oil can not be powered with coal; kerosene lamps and
> stoves, etc. can not be powered by coal; plastic and fiberglass products,
> which are oil-derivatives, can not be derived from
> coal; etc.

Coal is a potential substitute for oil in electricity generation, and in cases
where oil is in short supply it acts as a feedstock for gasoline and plastics
production - see germany in the 40s or South Africa in the 70s.

> In solidarity, Jerry
Paul Cockshott

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