Originally Posted by Penguin
Originally Posted by 500grains
I cannot believe that so few people here understand the supply-demand curve.


Rest assured that many of us that disagree with you do indeed understand a supply/demand price graph. It is just that we understand other things such as inelastic demand and price stickiness as well.

There is also the problem that to affect the final price you have to have the ability to significantly affect the supply. There are many of us who don't think America has this ability, not because of enviro pinkos but because of geology. :p

Will


Prudhoe Bay production has affected crude oil prices much more than it's % of U.S. consumption over the past 30+ years.

ANWR by most estimates, would have filled much of that void.

The funny thing about supply/demand is, an increase of X won't even be felt if demand outstrips supply by greater than X, but in a recession, when demand is soft, a 10% increase in domestic production can have a huge effect. Perhaps not down the road when demand increases from economic growth, but then gas prices don't have quite the negative impact on the economy during times of growth as they do during recessions.

Theoretically, the Senate's vote down of ANWR in 2001 and 2005 may end up the straw that broke the camels back, as the former would have resulted in full production at this time and the latter would be coming on line shortly.

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