Is the OPEC hurting its own interests?

OPEC has, in the past 2 years, taken steps to maintain high prices of Crude oil. But is this in its best interest? With the prices of Crude hitting $94, it presents a great investment avenue for alternate energy sources, be it man-made or natural. Historically the price of Crude has been at moderately low levels which did not attract much investment in alternate energy sources. But with the high prices becoming a norm rather than an aberration, it is attracting investment in alternate energy sources. From Jatropha to Corn, from ethanol to bio-diesel, many avenues are being tested.

In the long term by encouraging such investments OPEC may be sowing seeds of its own downfall. While it is in the best interest of all the stake holders to have a price which provides value to all the people concerned, by having prices rule at such high levels OPEC seems to be benefitting at the expense of the end-user. In the short term this may not have an impact as there are no alternatives, but in the long term it will not be ideal for OPEC to maintain such high prices by limiting supply.

Oil may be a limited resource, yet the alternates are being developed at a fast pace due to the high prices of Oil. An alternative may be found much earlier than the Oil reserves run out...