For Leslie Miller’s information, worldwide demand – not OPEC, not Esso, Shell or Texaco – has driven up prices creating huge profits for the oil companies. Worldwide oil consumption is growing three per cent to five per cent per year, while production and reserves continue to decline. China and India are growing their gross national product at 10 per cent to 13 per cent per year. They have just about single-handedly caused the world to run through its already slim excess production capacity.
So, world economic growth has finally caught up with dwindling oil production. At current consumption rates, prices can be expected to continue to climb until consumers in the world’s various economies curb their wasteful lifestyles and reduce their consumption enough to stabilize prices. Speculation by traders is also affecting prices, causing a de-linking of price to supply and demand.
It will take a massive change in the supply/demand equation to kill off market speculations. Since no huge increase in supply is on the horizon, we are left with reducing our demand as the only available cure. We can’t rely on the government to help us. We can’t rely on the oil companies to help us. We can’t rely on foreign countries to help us. So, each of us has to take care of ourselves (a novel idea in the early 21st century!).
E-mail:
“Recently a lot has been written about not buying fuel for one day causing the oil companies and oil producing countries to feel a pinch, personally I don’t think this will hurt either. If you drive and use the same amount of fuel on that day, you will have to buy it the next day, nothing accomplished.
Prices are driven by demand, if we reduce our consumption by changing our lifestyles just a bit (e.g. car pool, drive a little slower, eliminate unnecessary trips) demand will decrease and prices will begin to moderate.
What I suggest is we declare October “Conserve Fuel Month”. We all have to use fuel, there is no way of getting around it. If we would cut our fuel consumption by just 25 per cent during October, we will cut demand and keep more of our money.in our pockets. Conservation can be a (nearly) painless way to serve our personal interest.
More importantly, perhaps, is that we have the opportunity to seize control over our fate before the situation deteriorates to the point that our economy and personal lifestyles are severely hammered.
I am sure if we try, this goal can easily be reached or surpassed.
We have one week to get this message out, please pass it onto as many persons as you can, to the press in your area and to any Government officials you may have contact with. Pranksters can spread a computer virus around the world in a matter of hours, we have one week to get this message out, start now.”
By: CAPTAIN MIKE RUSSELL Nassau
