[frankthetank]

http://www.vheadline.com/readnews.asp?id=26014

$this->bbcode_second_pass_quote('', 'I')n percentage terms, growth in 2004 was very close to 4%, the highest for over 25 years. This big number sharply conflicts with forward planning ideas and beliefs of the IEA and other energy players -- especially the world's 10-biggest oil corporations. None of these players figure and plan for demand growth being anything over 1.75%-per-year on a long-term basis. Some, such as BP and ENI, still claim today that the 'normal' long-term rate is about 1.3%-per-year!

[ohanian]

$this->bbcode_second_pass_quote('', 'O')n the consumer side, to back the notion of slow growth being a fixed paradigm, oil users are everywhere thought to show 'price elastic' response to higher prices, that is they instantly cut their consumption whenever prices rise. On the supply side, the same high prices are expected to rapidly bring new and big suppliers into the market.

If this does not happen, we have an oil crisis.

[SD_Scott]

There's a couple of articles on asia times about this. I can't remember the link, but the article explains that the high price likely won't reduce demand.

[JohnDenver]

$this->bbcode_second_pass_quote('SD_Scott', 'T')here's a couple of articles on asia times about this. I can't remember the link, but the article explains that the high price likely won't reduce demand.

[PhilBiker]

One important problem with oil prices and the apparent inelasticity of demand (which been very eloquently addressed by my personal hero Matt Simmons) is that the price, even at double or triple or even quadruple today's price, is dispraportionatly low already.

Example: It won't take $5 a gallon in the US to significatly change our habits, it will take $15 a gallon. $2 per gallon is practically free considering how much effort and expense is required to extract and refine versus how much energy we get from it.

This is why Matt calls for close to $200/barrel prices. A "fair price" is not always what relatively free markets yield. Crude oil and its distillates are massively undervalued and have been forever.

[tokyo_to_motueka]

$this->bbcode_second_pass_quote('frankthetank', 'h')ttp://www.vheadline.com/readnews.asp?id=26014

$this->bbcode_second_pass_quote('', 'S')ince early 1999 oil prices have risen about 400%. Oil demand growth in 2004 at nearly 4% was the highest in 25 years. In each year since 1999 world oil demand growth has been higher than the previous year -- as prices rise!