58robbo

For Your Perusal: The Glory of Free Market Oil Supply

What an asinine depiction of free markets! for a start western oil supply is not free market. it is laced with subsidies. it doesn't help that price went down to $30 because of demand destruction. obviously physical limitations exist on oil, but supply does always respond to price just not in the way you think of it. i'd argue that when oil sat at $5 the market went looking for alternatives. that is to say that people started car pooling instead of going alone. people switched off the heat in their homes when it wasn't necessary, some people chose to walk, buy prius's, some invested in solar panels and electric vehicles. backyard inventors started coming up with all sorts of ideas. i personally know people in the garden maintenance business, who set up micro palm oil extrusion plants using the trimmings from the gardens they maintained. i'd give more examples but don't have the time right now.