[VAlibrarian (OP)]

I was reading an article today which argued that government regulation of the oil market is pointless and ineffective, but that rising prices are resulting in people buying more efficient vehicles and fewer large SUV's.

I wondered if this implies that rising oil prices are a blessing, as the article argued against any other means to change the behaviors of rising oil consumption. ?

chris wiegard

[ukmicky]

err no. As my wife says my car is my baby. And i have to feed my baby.

[David Sparkman]

Our glorious state of Hawaii just decreaded a maximum price to be paid for wholesale gasoline. This will of course result in lower gas prices, until they run out of gas, and no one wants to take a loss and sell them any. Politicians will do anything for a vote, including playing ignorant of basic economics.

Better efficency is of course necessary, but as the price goes up, more oil is produced. It is not evil or conspiring, it is economics. My Grandparents had 12 oil wells on their property. Over time, production fell off until the cost of pumping the oil out of the ground and hauling it to a refinery got too expensive, and the well was capped.

The well is still there. And the oil comanys know at what price the well will become profitable again. When the price goes high enough, the well will be uncapped and start producing again.

Likewise, there is oil in several protected sites off of California and Florida. When the pain of gas prices gets high enough, the political will protecting these sites will vanish, and the oil harvested. Also with higher prices, better care can be taken of the enviroment so really both sides of the issue win.

David