Wednesday, August 06, 2008
I'm no hedge fund manager like T. Boone Pickens, nor a venture capitalist like Al Gore, but seeing as how both of these gentlemen are proposing to eliminate our dependence on foreign oil by changing our vehicle fleet to use natural gas/electric, I have one [two-part] question for these economic luminaries.
What will happen to the price of oil if we reduce global demand by 25% or so, the amount currently consumed by the US, considering the average yearly change in demand is only 1.2%? If this change in demand were to cause the price of oil to crash back to $12 a barrel, where it was last time demand was that low, do you think this might complicate your ability to convince Americans to stick with your plan?
What will happen to the price of oil if we reduce global demand by 25% or so, the amount currently consumed by the US, considering the average yearly change in demand is only 1.2%? If this change in demand were to cause the price of oil to crash back to $12 a barrel, where it was last time demand was that low, do you think this might complicate your ability to convince Americans to stick with your plan?
