Environmentalists (at least they think they are environmentalists) argue
> against drilling offshore and in relatively remote areas of Alaska. They
> argue against this on the basis that it would only supply about 3-5% of U= S
> oil demands.
More importantly, they argue against it from the basis that CO2 is harmful to the planet.
But the recent crash in oil prices proves that even a
> relatively small imbalance in the supply vs. demand curve can cause drama= tic
> shifts in oil prices (which have gone from over $145 to under $50 per bar= rel
> in a just a few months). Demand for oil has weakened about 3-5%, causing = the
> price decrease.
Demand for oil dropped world-wide, not just in the US. A 3-5% increase in oil production will cause around a 1% oil supply increase worldwide.
Granted that much of the extremely high prices were the result of
> speculators, but that just proves that speculators can be kept in check w= ith
> the proper amount of supply.