Trend: The fall in oil prices is temporary. Demand will grow much faster than supply unless an alternative energy breakthrough occurs.
SUV sales increase
Sales of gas-guzzling trucks and SUVs, which have long been the main source of profits for Detroit's auto makers, plunged earlier this year as gasoline topped
$4 per gallon. Light truck sales were down 39% in October, but dealers say there have been signs of life in the segment in recent weeks. (Nov 26, CNN Money)
The new middle class wants the American Lifestyle
Charles Hugh Smith says: despite the current "head fake" of $2/gallon gasoline, petroleum supplies are still limited/in decline even as 2 billion new consumers gear up for their share of the energy-intensive Western lifestyle of autos, heat, air conditioning, malls, office towers, etc.
Price Declines are temporary
Simmons & Company reports:
■ Like the financial crisis, the energy crisis is real.
■ It has been building for years.
■ Supply is waning, demand is soaring.
■ Oil price collapse marks serious risk that demand will pull ahead of supply.
■ Once stocks get too low, we will have a run on our energy bank.
Fossil Fuel Production Rates
Food for Thought
The collapse of energy prices will boost demand.
The financial crisis and economic slowdown affect will reduce investment in energy efficiency.
Economic worries are diverting attention from strategic energy security and environmental challenges.
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