Pixie wrote:
But now yare ou telling me that increased efficiency was the causitive factor in an increase in crude oil burned--as opposed to increased supply from the Saudis, increased supply from the North Sea and Prudhoe Bay, and the resulting price crash? Because the industry history I have seen clearly shows a massive decrease in crude oil produced and used throughout the late 70's and early 80's.
Oh Pixie, you's about to get some 'splainin headed your way!
Yes, crude use crashed so hard during the 70's and 80's that it doesn't even look right to the people who do the Hubbert linearization models, and they are always dropping these little pointers into their graphs so they don't have to account for how economics gets all rolled up in something as simple as worldwide crude production rates.
Lots of fuel switching was going on back then, which is more of a "efficient use of the crude" point rather than a "everything got more efficient so we used less" point. So we used less because everyone who could, switched, not because massive efficiencies came down the pike and saved us. Although massive efficiencies did come down the pike, just not all of them stuck around. Like the 55mph speed limit and ever increasing CAFE standards rather than ever decreasing ones.
If you go back and read through the thread, and can separate out the "how many angels can dance on the head of a pin" distractions, what appeared to me when I did this exercise, was that CARS are the problem, particularly cars used by AMERICANS, and if we weren't such weenie, random cruising, SUV driving nitwits, that alot of the current supply=demand problem wouldn't even be an issue.
With enough of a production cushion, OPEC doesn't produce flat out, if OPEC doesn't produce flatout, they have to negotiate as to who gets how much of the available pie, if they negotiate, they are forced to sell at reduced rates to keep the price up so they can support their government spending. Kind of a "for the common good" arguement among the members of the Cartel.
While Jevons paradox gets mixed around into this mess somewhere, it isn't the exact reason why everything happens, it is only a part of the overall mix, a part which basically says conservation won't decrease demand by as much as is conserved.
Its all great fun though. Just watch the changeup between crude oil and energy, that one gets pitched as though they are the same.
Scooters for everyone!