OPEC cuts: oil dives

Rocky Mountain News- October 25, 2008
The DOE reported a decline in the demand for crude oil in 38 of the last 42 weeks, US demand is down nearly 10 percent during the last four weeks compared to last year. Because of the decline in demand OPEC has been struggling to keep oil prices up, because falling prices at the pump means huge losses for them. It appears that Americans have driven 15 billion miles less this August compared to last year, and this decline in fuel consumption is possibly the leading cause of the overall decline in crude demand.
Hopefully what happens in this country is a reverse occurrence of oil and gas demand of the 1970 oil embargo. Hopefully Americans drastically change driving and social habits in turn reducing demand for gas and crude oil. If demand for oil continues to drop 10 percent from the previous year then OPEC will slash crude prices to something we haven't seen in a decade. Here is the economic point that the oil and gas industry is terrified of because it would ruin the industry, cause bankruptcy, and massive layoffs. The oil and gas industry pours money into making sure there is stability and increasing value in their product, but their power can easily be overcome by an entire population that chooses change and alternatives.

http://www.rockymountainnews.com/news/2008/oct/25/opec-cuts-oil-dives/