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."