Another interesting link from Wiki, looking at the past and how oil fluctuates after a crisis:
1980s oil glut - Wikipedia, the free encyclopedia Quote:
|
Originally Posted by Wiki The glut began in the early 1980s as a result of increased crude production over the low 1979 levels, slowed economic activity in industrial countries (due to the 1973 and 1979 energy crises) and the energy conservation spurred by high fuel prices[3]. |
is that what's holding for us in the coming years ?
And this interesting bit:
Quote:
|
OPEC had relied on the famously limited price elasticity of demand of oil to maintain high consumption, but underestimated the extent to which other sources of supply would become profitable as prices increased. Electricity generation from nuclear power and natural gas[17], home heating from natural gas and ethanol blended gasoline all reduced the demand for oil.
|
In the long run we adjust our consumption, new technology come on line, so eventually demand drop. I don't blame China or India for the current problem, but we are to blame for not doing more when we could.