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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (392481)	6/19/2008 1:44:01 PM
From: Brumar89	Read Replies (1) \| Respond to of 1578924

Consider the hundreds of millions in China and India that don't have cars yet, but want them as soon as they can afford them. Thats where the demand growth is coming from. Yes but in the future they might be driving electric cars. They sure aren't moving in that direction. Their governments subsidize gasoline so its available to consumers - car owners - cheaper than the market would provide it. The oil executives know that oil trades at the margin of supply and demand. They know that, what, 5-6 years ago oil traded at $20 a barrel. They remember what happened after the 70's. Sure, and thats why a lot of them are only investing in projects that will be economical if prices drop back far from where they are now. And still we have a drilling boom going on. Add that EVERY car manufacturer is looking frantically for alternatives... they know that. If you think that's not part of their calculation you are wrong. I'm not sure what that means. If you think they're worried about demand for oil going away - not any time soon.