Aug 13, 2008 7:40 am US/Eastern
Drop In Oil Demand Brings Good And Bad News
BOSTON (WBZ) ―
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Oil rigs extract petroleum from Culver City, Calif., about 11 miles east of downtown Los Angeles on April 25, 2008.
David McNew/Getty Images
The high cost of oil is really hitting home with Americans, so much so, that we're using substantially less.
According to federal statistics, oil demand in the U.S. dropped on average 800,000 barrels per day the first half of the year, that's the biggest decline in 26 years.
"There's good news and bad news," said Professor Robert Kaufmann, the head of Boston University's Center for Energy and Environmental Studies.
He said while less oil demand is good news for the environment, it means bad news about the economy.
"There's been a significant decline in jet fuel use and other oils that are used in general economic activity," he said.
Lori Ward of Mansfield said her family has definitely reduced their oil consumption.
"(We) sold the third car that was a bit of a gas guzzler, broke my husband's heart, but we had to get rid of it," she told WBZ.
Not everyone though has the option to cut back. Just ask Marcus Blaisimond of Everett who has to drive for his job.
"I have to drive everyday, have to drive everyday," he said.
Prof. Kaufmann predicts we won't see gas return to $2 a gallon because prices are set on global demand.
"Unless demand slows down in places like China, India and Brazil... the oil we save will be offset by increased demand elsewhere and that will keep pressure up on prices."
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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