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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: couldawoulda who wrote (117234)	1/30/2009 2:19:04 PM
From: tom pope	1 Recommendation Read Replies (3) of 206151

This is from Energy Economist. Chindia of course changes the equation but we shouldn't dismiss the possibility that demand will come back more slowly than many anticipate. (Yes, I'm aware that Williams has long been an oil bear) That petroleum consumption falls with higher prices is also a given. The greatest decline was evident in the back-to-back recessions of the early 1980s. In the five year period between 1978 and 1983 petroleum consumption fell by 19%. It did not return to the 1978 level of 18.8 million barrels per day until 1998. Over the 15 years from the 1983 bottom, consumption fluctuated with the economy and the oil price, but it is clear just from the data that something lead to a structural change in consumption. Prices except for a short time during the Gulf War ranged between $20 - $30 per barrel in today's dollar.

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