Tuesday, April 29, 2008

Endless Oil Demand

New York Times April 29th 2008

"As oil prices soared to record levels in recent years, basic economics suggested that consumption would fall and supplies would rise as producers drilled for more oil.

But as prices flirt with $120 a barrel, many energy experts are becoming worried that neither seems to be happening. Higher prices have done little to suppress global demand or attract new production, and the resulting mismatch has sent oil prices ever higher.That has translated into more pain at the pump, with gasoline setting a fresh record of $3.60 a gallon nationwide on Monday.

Experts expect prices above $4 a gallon this summer, and one analyst recently predicted that gasoline could reach $7 in the next four years."



David Lamm said...

Friedmen has a good oped about our failed energy policy.
It is quite disheartening.

Dumb as We Wanna Be by Tom Friedman

"...Few Americans know it, but for almost a year now, Congress has been bickering over whether and how to renew the investment tax credit to stimulate investment in solar energy and the production tax credit to encourage investment in wind energy. The bickering has been so poisonous that when Congress passed the 2007 energy bill last December, it failed to extend any stimulus for wind and solar energy production. Oil and gas kept all their credits, but those for wind and solar have been left to expire this December. I am not making this up. At a time when we should be throwing everything into clean power innovation, we are squabbling over pennies."

Mipam said...

I am quite pleased by the price of oil, in fact I want it to rise even faster. Better to suffer economic warning signs before our planet gets into the biological death throe state.