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"When a major oil comsumer like the United States develops viable alternatives to Arab Oil, regardless of whether it's Arctic Wildlife Refuge Oil, or BioDiesel, or Wind Power, or Nuclear, or whatever, the worldwide consumption of oil decreases. "

Not really, it simply flows elsewhere in the world. This increases production in those countries, which at first subsidizes them because of the lower cost, however more production leads to - more production, So the long term use of oil and profits to the Arabs is not much reduced, and may be paradoxically increased.

Not really, it simply flows elsewhere in the world. This increases production in those countries, which at first subsidizes them because of the lower cost, however more production leads to - more production, So the long term use of oil and profits to the Arabs is not much reduced, and may be paradoxically increased.

You are making one false assumption. You are assuming that if the United States reduces or eliminates it's demand for Arab Oil, that demand will be taken up by other countries so that the worldwide demand for Arab Oil will remain the same.

Which is patently untrue.

Sure, other countries may increase their Arab Oil consumption of prices decline because of the elimination of the U.S. demand, but in no way would such an increase be sufficient to match the eliminated U.S. demand. We consume a LOT of oil, and industries can only expand at a limited rate. Countries consume the oil they can afford, or their economies and industries require. They do not purchase oil just to waste it (despite what the Anti-SUV tree hugger crowd might say).