Official forecasts may be underestimating the future demand for oil by 30 million barrels a day, according to a research paper by Joyce Dargay of the University of Leeds and Dermot Gately of New York University. If so, the next oil crisis is going to be a whopper.Dargay and Gately base their logic on the observation that the demand for oil no longer appears to respond to price. While price increases in the 1970s hammered worldwide demand for the fuel, the heftier oil prices we've witnessed over the past decade had no such effect. Instead, worldwide demand for oil increased by 4% during that time.
Dargay and Gately base their logic ...
Ms. Heaven (the author) needs to look-up the word "logic" in a dictionary.
...the demand for oil no longer appears to respond to price.
Well boil my buttons. I don't want to be some kind of pinko-commie DFH but doesn't that imply Demand Inelasticity?
(A situation, we are assured by NCE, is Unpossible.)
I think demand elasticity should be measured from the volatility of price and demand data and not from the levels or both. The brainless should not be in banking -- Willem Buiter
