Alex_G

Still an Oil Bull, Lame or Not

I have read dozens of articles about the price of oil, and they mention peak oil, demand destruction, geopolitical forces, etc, but no one mentions the obvious:

At what price does oil become economically unviable??

If fuel goes from 30% of airline costs to 60%, will people fly as much? The cancellation of 8% of current flights says no.

80 to 100 $ oil started the demand destruction that caused the 1 billion people that use the most oil to use 10% less oil for transportation, thus proving that a large percentage of oil will not be bought at any price.

Doubling of gasoline prices would make the extra cost of a CNG duel fuel car pay for itself in less than a year for most people.

This leads me to believe that $250 in current dollars won't happen.