Oil economics seems to defy general economics in the minds of some. They will readily agree that the price of oil will increase if demand exceeds supply. So when the threat of hurricanes or an OPEC announcement of reduced output is announced, they are perfectly comfortable with the market reaction to that news: oil prices increase.
On the other hand, these same special-oil-law-of-economics adherents will vociferously argue that increasing supply will have no effect on oil prices... that the only counter to increasing prices is decreasing demand.
The general law of supply and demand is superseded by the special law of oil economics: demand or less demand.They are partially correct. During the past few months, oil prices have declined as demand was reduced. The special law of oil economics was proven to hold true.
All that was necessary were massive economic problems around the world triggered by insufficient supply.So, when Obama and Pelosi and Reid tell you that "drill, baby, drill" is stupid, they are correct. You don't need more oil.
All you have to do is give up your standard of living and rely on hot air power... until some good alternatives are found.But don't be discouraged, their new regime will come up with a program to make it all better... that's a promise we can just add to the list.
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