Convict on 22/4/2006 at 16:25
Don't you shake your fist at me young man! :p
I genuinely misunderstood what you were asking btw
(
http://www.wtrg.com/prices.htm) WTRG Economics describes something almost like what I showed in the graph. "During the 1979-1980 period of rapidly increasing prices, Saudi Arabia's oil minister Ahmed Yamani repeatedly warned other members of OPEC that high prices would lead to a reduction in demand. His warnings fell on deaf ears. " The article then states that consumers substituted oil for other things. It also says that there was an increase (shift) in supply afterwards as well. OPEC seems to work mainly by increasing or decreasing supply however. I think, however, that for any product except oxygen (if we could be charged money for breathing it!), a price rise would cause a demand reduction.
EDIT: Also graphs look pretty.
Inline Image:
http://www.dailyreckoning.com/bin/o/i/priceup.gifBy definition, Australia's current account deficit will decrease if we import less (assuming exchange rate remains stable etc).
Briareos H on 22/4/2006 at 16:32
So we're demand.
Basically, we're asking them to screw us up until there's no more oil, ain't it ?
Well why don't everyone accept it ? Most of us (hopefully I don't) need oil everyday. So what, the system is what it is, with exploitation from the big companies against either the consumer and the producer. Basically that's what's been happening for the 10 last years. Why don't you all accept the fact that you're getting exploited and that you can't help ???
Convict on 22/4/2006 at 16:40
If it makes Americans feel better about themselves, (
http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/oil_market_basics/Demand_text.htm#Global%20Oil%20Consumption) liberal Canada is helping to destroy the environment!
Quote Posted by Energy Information Administration
The developed economies use oil much more intensively than the developing economies, and Canada and the United States stand almost alone in their consumption of oil per capita (see graph). For instance, oil consumption in the United States and Canada equals almost 3 gallons per day per capita. (The difference is these countries' transportation sectors, with their dependence on private vehicles to travel relatively long distances.) Oil consumption in the rest of the OECD equals 1.4 gallons per day per capita. Outside of the OECD, oil consumption equals 0.2 gallons per day per capita.
...
The United States and Canada use oil more for transportation than for heat and power, but the opposite pattern holds for most of the rest of the world: most regions use more oil for heat and power than for transportation.
SD on 22/4/2006 at 17:13
Yeah, but about three-quarters of Canada is covered in trees, so that sort of balances it out.
Oh, and there's about 90% fewer people. BUT APART FROM THAT...
D'Juhn Keep on 22/4/2006 at 17:28
o9
thanks for the graph, that's the kind of thing I was looking for. Though I would ask how old that is? It seems to forecast a dip in price as a result, I'd guess, of the dip in demand but it's 6 months on from the end of that graph and the price is higher than ever.
There's an interesting article (
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2005/03/08/MNG07BM2GF1.DTL) here.
Quote:
"I think what we've seen is the U.S. economy has adjusted to this fairly smoothly," said D.J. Peterson, acting director of the Rand think tank's environment, energy and economic development program. "So why would the price go down?"
For many Americans, conservation isn't easy. Caught between the rising costs of housing and fuel, many must endure increasingly expensive commutes unless they live near a good mass-transit system. And even then, most can't avoid using the car sometimes.
Harold Galicer of San Francisco has been driving to Sacramento for a management consulting job. "I can't cut down on how much I'm driving, because my livelihood is connected to it,"
Obviously this is mainly about the US though. Is it similar in Australia or are people more able/willing to save money by reducing their frivolous petrol needs?
Saying that though, the article (
http://www.msnbc.msn.com/id/10642724/) here would suggest that the US
is reducing its petrol use, possibly. Just by the simple expident of buying cars that don't have a hideously wasteful miles to the gallon amount.
Quote:
Sales of SUVs have fallen by 2 or 3 percent in each of the last few years, and a jump in gas prices late in 2005 accelerated that trend, curbing sales of the biggest SUVs]
Lots of anecdotal evidence (again from the US) to support you (
http://seattlepi.nwsource.com/local/267682_gasprices22.html) here. Although:
Quote:
Recent government and industry data show that the United States' gas consumption
is not rising as rapidly as it did this time last year.
That didn't make much sense to Holly, either. So maybe it'll still be some years before there's an actual dip in demand.
A few more articles about oil becasue this (
http://www.econbrowser.com/archives/2005/06/economic_conseq.html) post doesn't (
http://www.energybulletin.net/2931.html) look enough like one of (
http://www.econbrowser.com/archives/2005/06/whats_up_with_o.html) TGGP's :/
