Within the next 5-10 years, I’ve heard that gas prices will go up dramatically for the consumer. With the government pushing electric cars, biofuel vehicles and the like, the consumer will use less gas. The oil companies will sell less gas also. They aren’t going to loose that income. They’ll simply raise the price of a gallon.
So when the demand for a product is reduced by competing products, producers raise the price to compensate for lost revenues? Doubt it.
My “prediction” is that even if there are replacement sources for transportation, the emerging economies of China and India alone will take more oil than is being produced anyway. Those new forms of energy expected to be used to power vehicles are still experimental, even in the next 10-15 years, will be expensive, relatively undependable until perfected and unavailable to most.
In 5-10 years there will be even more vehicles on the road. Not only here, but everywhere else in the world.
The oil companies will be selling more fuel no matter how efficient the cars will be or what hairbrained fuel scheme is the gov't is pushing at the time.
Start pokin' holes in ANWAR and the oil shale! Suck 'em dry!
I think the oil companies will not any problem selling as much oil as they can produce. While some may switch to bio-fuels and such, the world growth and demand for oil will continue.
We cannot raise enough corn to even put a dent in the oil consumption. Switching every field in the US to corn may help to small percentage. Then there’s always that little problem of feeding the nation. Not to mention the tons and tons of corn and grains that we ship overseas which would have to be eliminated.
As always, the market will dictate the price of gasoline. And the oil companies will still make money.