Think Tank Watch – Ignoring the Demand Side of Fuel Prices
In a January 2006 report on the future of petroleum, IRmep made several predictions based on supply, and more importantly, demand side factors driving higher prices. Now a university economics case study, the report predicted that:
- Congressionally mandated tax subsidies spurring artificial SUV and pickup truck sales to end users who did not need their capacity attributes would dramatically shift the gasoline demand curve;
- The US Energy Information Administration “underestimated future petroleum prices” and should be ignored. The EIA’s rosy scenario of petroleum prices rising gradually to $65 by 2030 was driving dangerously unrealistic vehicle manufacturing in the US;
- Top tier think tank policy preoccupation with national oil entities, blinkered supply perspectives, and terrorism continue to be as valueless to average Americans as their public relations campaign and policies for war in Iraq launched between 1996 and 2002.