Crocodilian

$300/Barrel Oil Is Coming - Barron's Interview

Oil prices are a fascinating example of short term inelasticity and long term elasticity of demand[s]. In the short term, you live where you live, you work where you work, you drive what you drive, and the bus routes are what they are. Every one of those things is fixed in the short run . . . but variable in the long run. The recent price spike in gasoline did what no government policy could do-- forced consumers in a myriad of ways to rearrange their lives to burn less gas. This didn't happen immediately, but it did happen, over a period of six months or so. High gasoline prices which last for years will promote a radical re-ordering of consumer behavior.