-Caveat Lector- <A HREF="http://www.ctrl.org/"> </A> -Cui Bono?- from: http://www.aci.net/kalliste/ Click Here: <A HREF="http://www.aci.net/kalliste/">The Home Page of J. Orlin Grabbe</A> ----- Oil Market Oil Barrel Polka by Irwin Keller When somebody owes a wise guy money, he is invariably told: "you pays me now or you pays me later." The same goes for oil prices: either they go down now -- or they will go down later. In other words, the oil producing countries don't have much choice in the matter. Either they increase production enough to push prices lower now, or they will set in motion forces that will bring prices down even lower later. Don't take my word for it. Look what has happened over the past quarter of a century, since the first oil "shock" of 1973-74. Demand dropped while supplies increased, setting the stage for a prolonged decline in oil prices during the years that followed. Decreased demand The first reaction of oil users to the sharp run up in prices was to consume less. Motorists switched from the behemoths they had been driving to smaller, more fuel-efficient vehicles -- even before the government mandated increased fuel economy from the auto producers. They also changed their driving habits. Some simply drove less, while others either car-pooled, or switched to mass transit. Consumers and business conserved energy in other ways as well. They installed more fuel-efficient furnaces and machinery, set their thermostats lower in the winter and higher in the summer, used lower-wattage bulbs, and made sure the lights were out when they left their homes or offices. Increased supply On the supply side, the 20th century's version of the 19th century's gold rush soon got underway. New, previously uneconomical, sources of oil were discovered and brought to market from such regions as the North Sea and the North Slope of Alaska. Mexico soon became a viable oil producer. Efforts were made to extract oil from shale, as well as to develop energy from such non-petroleum sources as solar power, geothermal power, and nuclear power. Fuel cells were soon developed -- and have since become commercially viable. At the same time, the U.S. economy has, in the words of Fed Chief Alan Greenspan, gotten lighter. We are now more of an economy of ideas and services, than one that produces just goods. The bottom line: the United States is much more energy efficient today than it was back in the 1970s. Currently, it takes only about 10,000 BTUs of energy to generate a dollar of real gross domestic product -- 43 percent less than the 18,240 BTUs required back in 1973. And as the man said, "you ain't seen nothing, yet." There is plenty of room for even greater energy efficiencies if prices don't fall soon. Do you really need that monster truck to go to the supermarket? CBS Market Watch, March 28, 2000 <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are not allowed. Substance�not soap-boxing! These are sordid matters and 'conspiracy theory'�with its many half-truths, misdirections and outright frauds�is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://home.ease.lsoft.com/archives/CTRL.html http:[EMAIL PROTECTED]/ ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
