Demand will fall off as prices exceed about $150 a barrel, which make further increases difficult over time. High prices might work in our favor, though those with lower incomes would certainly suffer. The reason high prices could be good is that the national discussion on energy will take on a different tone. It’s easy to pretend to be green when its’ not too expensive.
The liberal answer will be mass transit, our answer will be drill baby drill. Let the festivities begin! I’ll take that battle.
I can’t imagine that demand destruction isn’t already occurring at current levels.