Quote:
Originally Posted by REAL 1
The CAFE standards in Europe are more stringent then here and their gas prices are higher then ours.
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.
The environmental nut cases are going to control what we drive and in the end our expense on everything. They are a bunch of liberal socialists !@#$.
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Evan
The price of gasoline in Europe (and other places) is higher than in the US due primarily to taxes.
Basic economic theory states that supply and demand will determine the selling price. When the price gets too high, demand will fall off. The amount it drops depends on the elasticity of demand. When demand falls off, suppliers will reduce the price in an attempt to increase demand. This is not just theory as we saw this very thing occur beginning in July 2008 when
oil hit $147 per barrel. Demand tanked and the price fell to $37 within a short period of time. As demand began to slowly increase, the price has also slowly increased and is now in the $50+ range.
I do agree with you about environmental nut cases however. Their main problem tends to be that they cannot see the forest for the trees.
Wayne