ALGIERS (AFP) – OPEC wants to see oil prices rising to more than 70 dollars a barrel, the oil cartel’s secretary general Abdalla El-Badri said Sunday.

 “The price of 50 dollars is not enough to cover investment costs for the future,” El-Badri told reporters in Algiers.

(Source: USA Today)

But the oil industry is quietly sowing the seeds for a sharp run-up in gas prices once demand recovers.

Oil companies are slashing new investment and production far more sharply than analysts projected just a couple of months ago, a strategy analysts say could lead to shortages and higher gas prices when consumption rebounds. And, analysts say, a standoff between the oil giants and their suppliers over the cost of rigs, labor and other expenses could prolong the investment slowdown.

“The turnaround will probably come faster than people expect, and the supply won’t be there,” says Joseph Stanislaw, an adviser to Deloitte’s energy practice.

Oil companies are shaving exploration and production spending 18% this year, including a 40% drop in the U.S., according to new estimates by analyst James Crandall of Barclays Capital. In December, the firm said budgets would fall 12%, 26% in the U.S. Drilling in the U.S. is down 39% from its September peak.

New initiative to pioneer 21st century solutions via greater coordination and interdisciplinary collaboration

(Source: MIT News)

The Massachusetts Institute of Technology today launchedTransportation@MIT, a coordinated effort to address one of civilization’s most pressing challenges: the environmental impact of the world’s ever-increasing demand for transportation. Building on MIT’s rich tradition of engineering research and interdisciplinary collaboration, the new initiative will knit together the wide-ranging, robust research already under way at the Institute and create new opportunities for education and innovation.

The program’s creation comes as the global movement of people and things becomes increasingly unsustainable — a problem that cannot be pinned on any one mode of transport. Two-thirds of the world’s petroleum consumption is taken up by transportation-related needs. Projections indicate that demand for petroleum, if unchecked, may outstrip supply within a few decades, while carbon dioxide output across the globe could triple by 2050.

“The global transportation challenge is as multi-faceted as a problem could be, and it is hard to think of an institution better equipped to tackle it than MIT,” said Dean of Engineering Subra Suresh. “By coordinating our own efforts and leveraging connections among faculty across our schools — from researchers exploring efficient new fuels to those studying transportation as a system to those rethinking how our cities are organized — we can make important and innovative contributions and encourage the rapid development of new ideas in sustainability, technology, business practices, and public policy related to all modes of transportation.