I agree with most of this post but I think the word "eventually", with regard to demand could be further in the future than currently assumed.
Problems with heating fuel costs are going to range over most of the U.S. Congress is working on a package of subsidy and possibly another round of incentives.
While the exact details of the recent housing assistance package are yet to be reviewed by the press, some of this has become public. The segment regarding the two F's proves interesting. Bail out funds are provided along with stipulations regarding exec. pay levels and a call for a new oversight agency with more "teeth"". The bill also includes higher cost levels for government backed mortgage notes. I believe that the old cap was around 417,000. Since you don't mind going out on lilmb, you should take a look. I don't like what I see. First, we have a financial mess and the only culprits so far are some rumor mongers and some investigations into hedge funds and lending practice. All of the oversight responsibility rested in Congress and government agency and this housing assistance package seems to be an effort to avoid any direct investigations.
Why does Congress wish to avoid asking the heads of the OFHEO how this happend? The same for the heads of Fannie and Freddie?
Why are we raising the mortgage cap above the 417,000 level? Is this because the two F's are carrying jumbo's that they were not supposed to?
Perhaps there are no questions because there are too many people involved and to much would come to light with public hearings.

some americans really worship at gas pumps as you know.. lets look at a regular week.. That american drive alone to work , then goes up to mountain to ski on weekends (almost every weekend) he has a snowmobile there and he frequent at gas pumps all over .. Come to think of that. Some americans are really high consumptive types! Without gasoline, they will end up in mental wards, willnt they? maybe they ought to pay a visit to a shrink or what/??

some americans really worship at gas pumps as you know.. lets look at a regular week.. That american drive alone to work , then goes up to mountain to ski on weekends (almost every weekend) he has a snowmobile there and he frequent at gas pumps all over .. Come to think of that. Some americans are really high consumptive types! Without gasoline, they will end up in mental wards, willnt they? maybe they ought to pay a visit to a shrink or what/??

There is still so many Americans around who think that they can still afford $4 gasoline or even $6. They still buy new SUVs and PickUps because those sales has not exactly cratered at all just down 30% or so. Those Americans dont seem to care about other poor Americans who are praying by bedside for a return to $2 gasoline. Praise the Lord! We will have $2 gasoline back and the wealthy infidels will be burned to ashes!! alleuia!

There is still so many Americans around who think that they can still afford $4 gasoline or even $6. They still buy new SUVs and PickUps because those sales has not exactly cratered at all just down 30% or so. Those Americans dont seem to care about other poor Americans who are praying by bedside for a return to $2 gasoline. Praise the Lord! We will have $2 gasoline back and the wealthy infidels will be burned to ashes!! alleuia!

Maybe we should start rationing gasoline to all Americans even if he doesnt have a car . He can sell his rations for any price he commands. Suppose you are stranded with no rations left, you can still buy gasoline at much higher prices. This way we can keep supply and demand balance on a predictable basis and keep Big Oil from messin' with our economy anymore. We had our fills with Big Oil because Big Oil is so big like an elephant thrasing our tents when things are not going right. Our government can issue special credit cards with rations of , say, 1000 gallons a year that we can insert in gas pumps. We will be forced to decide whether to carpool, operate a RV or a yacht, gas generators or vacation trips. Sure , parents can be issued 100 extra gallons for each kid as an exemption. it is much like your utiltiy bill with price brackets starting with first 15 therms a month at lowest price and escalalte to higher brackets as your utility consumpiton goes up. Your utility already dont care how big your house or small your apartement is. They charge you at various prices... Why cant we do same thing with Big Oil?? We just cant drill out of our oil problem ever again... it is 2008 not 1940's... 7 billion dudes live on Earth already...

lets give two year leases at anwar with drilling commitment..and remind nancy pelosi that her approval rating lower than bush...it mirrors her IQ

I would think a smart survivalist would move to a more temperate climate....

Lipton,
In Alaska, the National Petroleum Reserve/Alaska, directly to the west of the National Wildlife Refuge, has over three times as much projected oil reserves as the Wildlife Refuge, and has close access to current pipelines. The 24-million-acre NPR/A is completely open to leasing, 4 million acres are already leased, but the oil companies have yet to produce a drop of oil there. Clearly, oil companies already have more acreage under lease than they choose to develop, and their record profits certainly allow them to invest in equipment and refineries they might need. Instead, they want to hoard more leases and drive prices even higher.