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To be more accurate you would say "restrict consumption" because that is what you are doing here. How do you plan to do that? If you did so by restricting ext
by travisoneill1 7y ago
To be more accurate you would say "restrict consumption" because that is what you are doing here. How do you plan to do that? If you did so by restricting extraction directly, as you seem to imply it would cause oil prices to jump dramatically. In fact, since oil is has extremely inelastic demand, this would be a massive windfall to the oil industry. The only other way to do it is rationing, which I'm sure would go over about as well as the massive price increase.
- r00fus 7y agoI'd say more like "redirect/rewire consumption". Oil demand is considered inelastic because we have minimal mass transit options in most North American cities. So, increase mass-transit and HVDC links combined with funded solar+wind sources and EV chargers to covert the fuel-demand into overall energy demand. Also, the oil being consumed here is headed out to the global market. It's not being earmarked for local use. It's effectively fungible with global supply so the decrease here will simply have a small global price increase.