The Challenge of Dairy Farming in Saudi Arabia: The Not So Easy Matter of Water Supplies

For those interested in the intersection of farming and natural resources will want to listen to "The Cost of Making Milk in the Desert," which was broadcast on National Public Radio's Weekend Edition Sunday (June 14, 2009).

This piece explains how much water it takes to sustain a dairy operation in Saudi Arabia, and the related -- and difficult -- resource issues.

Oil $150 Per Barrel by 2012?

Since last summer's oil price of nearly $150 per barrel, the price has plummeted although now it is somewhere in the range of $60 per barrel.

However, Saudi Arabian Oil Minister Ali Naimi yesterday predicted that oil prices could approach $150 per barrel in three years time because of recent lack of investment in exploration and production.

Mr. Naimi said at a meeting of the Group of Eight energy ministers, "If others [besides Saudi Arabia] do not begin to invest similarly in new capacity expansion projects, we could see within two-to-three years another price spike similar to or worse than what we witnessed in 2008."

A combination of factors have hurt the investment picture, Mr. Naimi said, including weak demand, low prices, and troubled credit markets, the Financial Times reported ("Saudi Warns of $150 Oil Within Three Years," May 25, 2009).

Meanwhile, today's Financial Times includes an excellent special report on energy.  Anyone interested in the energy sector should read through this report.