If you look at the membership of the G-8 -- the United States, Japan, Russia, Germany, France, Britain, Italy and Canada -- only Russia is a major oil producing nation, and Russia does not export to the United States. So, in reality, the G-8 is getting together to solve a problem they have, but the solution is not necessarily within the G-8 itself...it is outside the G-8, which means major mediation and negotiation must be involved.
According to expert mediator Dr. Pat Boone, "Saudi Arabia is the major player, because they have the capacity to expand their output. Will Saudi Arabia be the next country to be invited into the G-8, making it into a G-9?"
"Even if Saudi Arabia does become a member of the G-8, it does not mean that Saudi Arabia's expanding their output would cause the price per barrel to come down -- just that petroleum would be more available. If you have a product that other countries need, nothing can keep you from continuing to raise the price, unless your country needs something other countries have, and they could raise the price on you in return. It's a form of our basic 'checks and balances' system.
"As the world becomes smaller and smaller with interdependence on products and purchasers, only that, our interdependence, will be the key to negotiating prices that everyone can live with if we want to stabilize our global economy."
Dr. Pat Boone is a Certified Mediator in Colorado Springs, Colorado, trained to see "the cause behind the symptom."
