they will just stop? and what lose business lose all the money to the competition..how do you figure that...the first thing they would do if they have a surplus amount is to drop the prices of gas
that's not how gas works.
The investment is in the pumps, not the oil. They will just turn off the pumps, thus lowering their production costs, and gas prices will stay the same, and they will make MORE money off LESS sales of gas at the same price. When demand goes back up, they turn the pumps back on.
shortterm, gas is a constant demand (it stays the same)
only long term can gas demand be changed (because most people don't go out & buy a new car just because gas prices go up)
however, when they do buy their next car (usually within 4 years on average)...gas prices will be a consideration. (anything over 1 year is considerred long term). so eventually, if gas prices remain high, then IN A FEW YEARS gas demand will decrease because people will buy smaller cars.
don't forget that the way toyota got it's foot into the american market was because of the gas crisis of the 70s. toyota was making small compact cars that were good on gas for years, but americans stayed away from them because it was the age of "muscle cars". but when gas prices suddenly spiked, the people who bought new cars bought toyotas
enough history though--gas prices will eventually be controlled.