knightowl1953

A Supply Side Problem: Oil's High Price is Here to Stay

Thanks for the input. I appreciate the comments. Yes, a marginal supply price that is attainable is hard to predict. But the arguments for larger increases that are attainable present a better scnenario than to argue that prices are going to go down. The heart of my argument is that I believe we are just beginning to see the inelastic price for inelastic demand. It will only get worse, in my opinion, because the emerging nations will eventually grow larger than the demand of the US. Even with substitutes, such as coal, which on its own has gone much higher in price and has been able to maintain the levels, oil supply will eventually be lower than inelastic demand supporting much higher prices. And yes, with time, in my opinion at least 30 years, we may eventually see true substitutes for oil, such as hydrogen cars.