That outlook ought to give Opec pause as the US consumes far more oil and other petroleum products than any other. Sales of petrol-guzzling 4x4s fell 20 percent in the past year. Legislation passed in December requires car makers by 2020 to make fleets that get an average of 56km per gallon, which will provide a push for electric and hybrid cars and doom 4x4s built on truck frames.
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Opec To Pump More Oil
After all, the Kuwaitis cancelled their routine auctions only the month before, thinking the bids weren't high enough
Yamani's announcement surprised journalists. After all, the Kuwaitis cancelled their routine auctions only the month before, thinking the bids weren't high enough. Yet Yamani hadn't cleared his plan with King Faisal and the auction was never held. The added income from higher prices in the short run was too attractive to pass up.
Opec would do well today to consider whether Yamani had a point. Those energy-saving investments, as well as adoption of higher vehicle fleet mileage standards, were made in the US and elsewhere. As a result, energy and oil use per dollar of gross domestic product fell significantly.
There are signs a similar response is in the works again with petrol prices at the pump approaching $4 a gallon in the US and higher in Europe. Increased awareness of the dangers of global warming is heightening the response to the squeeze on consumer pocketbooks. In the long run, price matters a great deal in determining oil demand. According to the Energy Information Administration, if world oil prices stayed at today's level of $127 a barrel, oil use in the US might not rise at all in the next 20 years.
That outlook ought to give Opec pause as the US consumes far more oil and other petroleum products than any other. Sales of petrol-guzzling 4x4s fell 20 percent in the past year. Legislation passed in December requires car makers by 2020 to make fleets that get an average of 56km per gallon, which will provide a push for electric and hybrid cars and doom 4x4s built on truck frames.
That outlook ought to give Opec pause as the US consumes far more oil and other petroleum products than any other. Sales of petrol-guzzling 4x4s fell 20 percent in the past year. Legislation passed in December requires car makers by 2020 to make fleets that get an average of 56km per gallon, which will provide a push for electric and hybrid cars and doom 4x4s built on truck frames.
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