Quote:
Originally Posted by The_Heretic
In seven years I've not seen oil demand drop at all. It's only increased. And what you'll instead see is increasing debt as a result of buying gas and heating oil.
This still asumes oil for transportation drops, which flies in the face of the trend over the last decades.
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Oil demand increases as the standards of living around the world rise... Increasing debt will devalue USD and people (China etc) will simply stop lending us money.
Oil is still very cheap, so it will continue to be in demand... Even $10/gal gas won't do it. Europeans are getting close to that level, i think, but it does not overburden their lifestyles excessively. But lets say price of gas approaches $50/gal... It will become simply impossible to fill up a current gas tank, average people do not have $1000-$2000 to spend at the pump every week. Fuel efficiency will have to rise dramatically and consumption will drop.