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If you’re still wondering about increased oil demand ...
Posted by: McQ on Thursday, June 26, 2008

Perhaps this will give you an idea of at least one of the things driving (no pun intended) it:

Auto sales in China are up 17% despite the rise in oil prices. Chinese buyers surpassed the number of projected autos in China for 2020 in 2005.

Of course, oil isn't the only thing which has seen increased prices. Commodities, like copper, nickel and aluminum have been a part of this as well as automakers try to keep up with demand.

Another reason to believe that it is mostly demand that is keeping the oil prices high - not speculation and not price gouging.
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Previous Comments to this Post 

it is mostly demand that is keeping the oil prices high - not speculation and not price gouging.
Just to qualify this a bit, the, uh, "speculators" (that was hard to choke out, believe me) are just following the market fundamentals for commodities. Demand for anything drives prices for any tradable good. If the volume is big enough then the price swings can be traded profitably by a skilled investor. When demand drops off, and it inevitably will at some point, those same investors will go short and ride the prices down.

Speculation is the afterbirth of price volatility, not the cause.
Written By: CR
URL: http://
Another victory for trade with China.

our reciprocating boon ought to happen any minute now...

any minute now...
Written By: jpm100
URL: http://
Well, we’ll see if that’s the issue soon enough.
If I recall rightly, China is dropping it’s gasoline subsidy, which will lower demand there by quite a bit.

Written By: Bithead
So we just need to create transportation that doesn’t use copper, nickel and aluminum and is not fueled by oil...

Here we go...

Written By: Keith_Indy
Hey, Mr. Horace N. Buggy there look like he can really haul...
Written By: CR
URL: http://
I’ll make another exception here to my lurker status to say on this issue you’re absolutely right — though, to be sure, demand is only half the equation. Production is stagnant, and we’re probably at or slightly past peak world oil production. Even if we drilled all over Alaska and off shore, it wouldn’t fundamentally alter that fact, even optimistic estimates don’t have that much oil to be found (and one has to question whether or not such investments are best used to get new oil by drilling or to move towards a post-fossil fuel economy, given that at best getting new oil is at best a bridge). Nuclear energy is another bridge, but uranium supplies are limited as well — it’s not a long term alternative. Our lives are going to be changing very quickly in the coming years.

OK, back to lurker status...this issue is perhaps the most important issue facing us today, and as long as people blame speculators, blame oil companies or blame OPEC, they’re simply ignoring that this isn’t something you can just blame on someone. Its supply and demand involving a non-renewable resource of limited quantities.
Written By: Scott Erb
"...we’re probably at or slightly past peak world oil production."
Given the actually tiny percentage of the earth that has been explored for oil and gas, neither you or anyone else has any way of knowing that.

You’re a parrot, Erb. Shut up and go steal a cracker.
Written By: Billy Beck
URL: http://www.two—
Please make a similar graph of sales of air conditioners in China and then forward to Barrack Obama who claims the rest of the world won’t tolerate American cooling their homes, or driving SUV’s, etc.
Written By: Harun
URL: http://
Production is stagnant, and we’re probably at or slightly past peak world oil production.

More likely, production is stagnant because decades of stagnant demand led to cheap oil which, in turn, militated against major investments in field improvements or new development. That has all changed now thanks to $140/bbl. Today there are hundreds of new E+P projects currently in progress around the world (including a handful in the US). Given the years of lead time until meaningful production we’ll need to watch this process play out for a while but stagnant production will likely soon be a thing of the past.
[N]ew oil is at best a bridge. Nuclear energy is another bridge, ... it’s not a long term alternative.
And a much needed bridge at that for the next several decades until meaningful alternatives can come on line in any meaningful quantity.

It took decades to marry the internal combustion engine to a drivetrain, chassis and wheels and ramp up car production to make the buggy whip obsolete. It took decades from the first ENIAC until computers brought us the information revolution and major productivity increases. It took decades of basic research and medical trials to start making impacts in the treatments of late stage cancers; patients now survive disease states that were certain death a generation or two ago. And it will be decades before today’s alternative fuel prototypes, or those not yet thought of, make a meaningful impact on our total energy picture. Technological revolutions are a process, not an event.
Written By: CR
URL: http://

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