Commodity Bubble Proponent

Greenspan's Latest: Oil Boom Will Likely 'Go on Forever'

Just a thought here...but historically speaking long run oil demand (5-10 years) is fairly elastic despite most of the inelasticity arguments posited. For example, between 1979-1985, oil use actually declined internationally by approximately 10 MB/D due to higher conservation and changing energy policies.

Eventually (and we are seeing the first seeds of change), alternative energy solutions (algae based biofuels, cellulosic ethanol NOT food based fuels) will make a gigantic impact on energy demand. The argument that oil demand will rise indefinitely and that alternatives will take hold in 300 years is akin to saying in 1989 that the cellphones and the internet would be niche technology for at least 30 years (and yes people said that in the early tech boom).