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> If we all stopped driving cars, the oil companies are going to stop processing so much oil. Yes and no. Or at least maybe. If demand from autos drops so does
by chiefalchemist 3y ago
> If we all stopped driving cars, the oil companies are going to stop processing so much oil.
Yes and no. Or at least maybe. If demand from autos drops so does the price of oil. At some point it becomes feasible to be used for things that were previously too expensive. Like what? I'm not sure but these things happen. It's how the market "thinks".
Worst case, the cost of plastic falls even further. Less autos equals more plastic?
Regulation via higher taxes on petroleum-sourced products could work but it continues to be politically unfeasible.
- marcus_holmes 3y agoI agree with you on the supply/demand thing. Which is unfortunate because we need to stop using so much oil.
- kelnos 3y agoOPEC (et al.) won't let that happen. If demand drops, they'll artificially constrain supply in order to prop up the price. Of course, there could end up being a point in time when demand is so low that their whole thing just collapses.
- chiefalchemist 3y agoThat's a good point, thanks. However, as demand drops so does the unity of such cartels. Less demand will likely destabilize those arrangements. In this case, raising prices to compensate for drop in demand is self defeating as it makes alternatives more cost effective. At some point there's a tipping point where volume is the only option (to make up for less demand). We'll see. It's complicated. And if you or I could predict the future...we'd not be on HN guessing :)