Supply and demand, hybrid vehicles...?

Question

While i was dreaming of the 6 stoke engine that isnt out yet, and of a 2008 Tesla Roadster, I was thinking, with all the push to increase gas mileage by 2020, the demand for fuel will go down. It makes me think the oil companies will just raise prices even further to make up for the loss of sales. What do you think?

Answer 1

If demand goes down due to advances in alternative fuels, the price of gas would drop. Ever notice how gas prices go up a bit around the big travel holidays? It's because demand goes up. The more people want something, the more they're willing to pay.

Frankly, I don't think the demand for fossil fuel will go down anytime soon. There are more people, more cars, more plastics (a petroleum product), ergo more demand. Attempts to conserve may slow the rise in demand, but it'll still be a rise. A rise in demand + stagnant supply (i.e. NOT drilling in Alaska and elsewhere) = higher prices & continued dependance on foreign oil.

Answer 2

The Oil Companies are a minor player in the global price of oil.  If you want to dream of a vehicle, go to flytheroad.com.

Answer 3

I suspect the oil companies will continue to do their utmost to sabotage any technology that cuts them out of the market.

Answer 4

Oil companies do not control prices. The free market does.

The supply of gasoline in this contry is limited because nobody has been willing to put a refinery in there own back yard since the seventies.