Re: But There Ain't No Global Warming.

From: Tony Wesley (tonywesley_at_gmail.com)
Date: 01/27/05 

Date: 27 Jan 2005 04:33:56 -0800

Michael Davis wrote:
> Speaking of raving. Your irrational panic is showing. There is no
> shortage of oil. Can you name anyone who wants oil but can't buy
> it at any price? No? Thought not.

Interesting. At any price? Assume for a moment, at some point, anyone

who wants to buy oil could buy it but at $1000 / bbl.

> That means there is no shortage.

Interesting definition of shortage.

> The price is artificially high right now because speculators, spin
> doctors and panic mongers have driven it up and are making
> windfall profits.

Paranoid conspiracy theory noted. Occam's Razor would have us believe
that the market forces have behaved as they always have.
"... when goods are traded in a market at a price where consumers
demand more goods than firms are prepared to supply, this shortage (or
excess demand) will tend to lead to increases in the price of the
goods."

from http://en.wikipedia.org/wiki/Supply_and_demand

> The reason there is little investment in
> developing new supply is because the present supply is adequate
> and new supply coming online would tend to drive the price down.

"...new supply coming online would tend to drive the price down."
The converse is that having less supply, (i.e., a shortage) would
tend to drive the price up.

Relevant Pages

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