Quote:
Originally Posted by REAL 1
If we decrease our demand for gas and the oil companies and the Shieks are making less what do you think they are going to do? Drop prices?  Uh, I don't think so. The numbskulls in the Administration and Government can't grasp this simple concept. |
Just recently demand for
oil dropped because gas was became too expensive, selling for $4.00/gallon here in the SF Bay Area. Now when prices dropped back down to the low $2/gallon range, again here in the SF Bay Area, people started to drive more again. Now prices are back up to high $2/gallon range. So I think the
oil producing countries think differently than your thought above.
A few months back, when oil was around $40/barrel, 60 Minutes interviewed the Saudi oil minister. I saw genuine fear in his face, since I think he said the breakeven point on a barrel of oil was in the $50-$55/range (I forget exactly). They need us users of oil to keep using, thus prices will be low when demand decreases. You gotta give the gas junkie their fix to keep them coming back for more.
In fact, he said Saudi Arabia was looking at developing, building and exporting other energy alternatives (wind, solar, etc.) as a hedge for the day when oil is no longer as highly demanded.
Now when there's only a few gas-operated cars left on the road, and one of them is Mad Maxx's, then I think the price of oil, at least to Humongous, will be very expensive.
