Friday, January 19, 2007

Oil Consuption dips: annoys Greens and OPEC simultaneously

Reported on's Opening Bell

High Prices Prod Developed World To Curb Oil Use (WSJ)Yes Virginia, demand for oil is elastic. For the first time in years and years, the amount of oil consumed in a year was lower, in the developed world, than the amount consumed in the previous year. A declining demand picture just be playing a role in the slump in oil prices, for the most part is really difficult to explain. This is also the kind of thing that the mature OPEC countries (think Saudi) hate to see. They love high prices, as long as it doesn't have any kind of effect on consumption patterns. But the cash isn't worth it, if it gets Americans and Germans to start talking about conservation, nuclear power, electric cars and carpooling.

To recap, every action has an equal and opposite reaction. Bring this up the next time one of your uptight treehugger friends starts parroting dogma from An Inconvenient Truth.

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