Wednesday, December 9, 2009

Why cannot we boycott the oil industry to make the oil price drop?

Gas prices are pretty much up in the air, Its taking every dime to make ends meet. Alot of people are facing foreclosure due to hi prices and low valued dollar. What is it going to take before the Stock market crumble like it did in 1929?Why cannot we boycott the oil industry to make the oil price drop?
oil is a necessity of our daily life, and therefore we cannot boycott the oil industry. we need oil to drive our car to work, to power up the electricity for home heating and lights, although we may reduce the use of it at great inconvenienceWhy cannot we boycott the oil industry to make the oil price drop?
Crude oil as well as gas prices are set to a great extent by supply and demand. Supply is limited and running out. Demand in increasing. It's not just the US that is causing the increase in demand. The developing countries such as India and China are increasing their demand by large percentages as their economies grow. We are, though, responsible for some of that. Our out-sourcing of jobs has been a big factor in the improvement of the economies of India and other countries. Our purchasing of products from China and Taiwan and other is also responsible for a lot of their growth. I understand that future speculators were responsible for much of the surge in crude prices but this speculation is based on increases in crude prices. This increase in pricing is a given unless other forms of energy are developed to a point that a significant reduction in demand is created. The development of other sources of energy will take time. In the meantime, crude prices increase. As long as our economy depends of oil for its operation, there's not a lot we can do to decrease demand. High prices in one way, and the most effect way, of reducing demand. A boycott would simply hurt us more than anyone else.

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