jorgelito

Nice response TM875!

Quick reply from me:

1. If demand is reduced (i.e. - through our arbitrary 50% boycott example), shouldn't prices then come down. I'm not quite sure I understood your 1st part but I assumed that was the driving cost factor in oil prices. I do understand what you're saying about OPEC's role but I believe they mentioned a price of $28 per barrel as their comfort zone. I think there's alot of instability anyways in their cartel and non-OPEC countries like Russia, Mexico? are significant enough to alter the equation (not sure, this is a quick reply). That is why I believe the demand end is just as critical. Demand, supply, etc all factor in on the price. We, as consumers, "control" the demand part.

2. We live with it. Prices aren't that bad are they? Again, prices are at an all time low (adjusted for inflation). So, as consumers we change or modify our behavior.

US oil, again, maybe short term (as in eventually we WILL run out of oil). Additionally, new drilling will not show immediate results for awhile. Plus, I think the problem is more REFINING. I think someone else also mentioned refining as an issue.

3. I'll skip the OPEC part for now but I do want to discuss (again, quick reply).

4. Now we're getting somewhere - this is what I'm really interested in. Research, alternatives. I also agree with your contention that it will decrease DEMAND for oil, thus decrease price etc (which is what I was saying in th 1st point). I intrepret you point here as making my point in the first part.