A dumb moment...

[Whirlpool]

We have been experiencing continuous increase in Oil in the World Market, and every week it never stops increasing .

I just wonder , why are we having this uprise in Oil?

Are we having shortage naturally or it's from an effect of something.
Are these Oilmakers hoarding it?

Pls inform me if I am threading a thin line here.

But it's just my dumb moment.

[Neverfly]

My grandmother used to joke: "We need to rush to the store and beat the hoarders to the sale!"

The price increase is due to embargoes - The war in the Middle East.

[Jens]

I just wonder , why are we having this uprise in Oil?

Honestly, I think that it is much more about demand than supply. The seaboard area of China and parts of India are getting richer, and people are consuming more energy there. Of course, their consumption on a per capita basis is still way below Western standards, but it's still growing demand. The bad thing about that it that it is, IMO, a fairly long-term issue and not something that will suddenly go away. Supply is increasing, but not enough to meet the rise in demand.

[DyerWolf]

The answer is quite complex and involving a number of issues, not the least of which is fear (people's fear of the limited availability is partially responsible for the increase in price) as is the increased usage by developing nations:

In 2004, China passed Japan as the world's second-largest consumer of oil. It ate up an average of 6.63 million barrels of oil every day – about twice what it produces. Its oil imports doubled between 1999 and 2004.

China's demand for oil is expected to continue to increase by five to seven per cent a year. If that happens, China will surpass the United States as the world's largest consumer of oil by 2025.

Similarly, India's oil needs are expected to grow by four to seven per cent a year. In 2004, it consumed two million barrels a day.

Citation

IMO - the continued high price of oil may be a good thing: in that it makes investment into alternative energy sources a competitive investment. The increased investment into solar, nuclear, wind and alternative fuels can only benefit us in the long run. Absolute (or over-) reliance on only a single fuel/energy source is detrimental to the global economy, as we're all learning...

[Whirlpool]

So that means , it's the increasing demand in consumption of Oil that causes its uprising and not just because somebody is keeping it from consumers.

If that is the case do we have countries or scientists who are looking for more resources of oil . The alternatives now are becoming visible , biofuel, fossil fuel, hydroenergy , solar energy. Does that means oil is gradually disappearing and soon it will be replaced by these alternatives?

[DyerWolf]

Yep. Accessing offshore oil resources is one method...

There is also deep water oil.

But:

Deepwater oil fields, those below more than 1,000 feet of water, represent one of the final frontiers of oil prospecting. The good news is that there's plenty of oil in such deposits, especially here in the Gulf of Mexico and off the coasts of Brazil and West Africa. The bad news is that much of that valuable crude lies in complex geologic formations, hidden beneath a mile or more of troublesome salt layers — meaning these new reservoirs will be costly to develop and thus will do little to eliminate $4-a-gallon gasoline.

Citation

[A.DIM]

Are We in the Peak of an Oil Bubble?

"By analyzing oil prices over the past four years, the researchers have demonstrated more support for the hypothesis that the recent oil price run-up has less to do with supply-demand interplay and more to do with speculation."

"A comparison of supply and demand showed that, most recently, supply has been exceeding demand by more than a half million barrels per day. Meanwhile, the price continues to increase. Since it appears that the supply-demand balance has only a small effect on the price of oil, the researchers suggest that a major effect lies elsewhere. They point out several reasons why speculation, fed on rumors of rising oil scarcity, may be the positive feedback causing high oil prices."

IOW, fear mongering for profit.

[Whirlpool]

Are We in the Peak of an Oil Bubble?

"By analyzing oil prices over the past four years, the researchers have demonstrated more support for the hypothesis that the recent oil price run-up has less to do with supply-demand interplay and more to do with speculation."

"A comparison of supply and demand showed that, most recently, supply has been exceeding demand by more than a half million barrels per day. Meanwhile, the price continues to increase. Since it appears that the supply-demand balance has only a small effect on the price of oil, the researchers suggest that a major effect lies elsewhere. They point out several reasons why speculation, fed on rumors of rising oil scarcity, may be the positive feedback causing high oil prices."

IOW, fear mongering for profit.

That's another possibility . These Big companies wants to control the market to gain profit.

[Chuck]

I think we should boycott the oil companies until they cut their prices.

Oh, yeah, I live 2¼ miles from work and bicycle there and back.

[mugaliens]

The answer is simple - increase supply of energy, not oil.

GO NUCLEAR!

[Whirlpool]

I think we should boycott the oil companies until they cut their prices.

Oh, yeah, I live 2¼ miles from work and bicycle there and back.

You know, it already started here , in my country. The bicycle companies are happy because their sales have gone up.

I agree , it will also lessen the pollution plus , it's a good exercise!

[Neverfly]

There is no way I'm going to load up 500 lbs of tools and machinery onto a bicycle and pedal 30 miles to the first Job Call and then 20 miles to the second, 15 the third, 40 to the forth (San Marcos or Wimberly?)...

You boycotters can kiss my tailpipe

[Chuck]

Some people just don't seem to be able to cooperate with others.

[Argos]

Deepwater oil fields, those below more than 1,000 feet of water, represent one of the final frontiers of oil prospecting. The good news is that there's plenty of oil in such deposits, especially here in the Gulf of Mexico and off the coasts of Brazil and West Africa. The bad news is that much of that valuable crude lies in complex geologic formations, hidden beneath a mile or more of troublesome salt layers — meaning these new reservoirs will be costly to develop and thus will do little to eliminate $4-a-gallon gasoline.

Well, that oil wil be more expensive due to higher extraction costs. But those reserves will greatly reduce the uncertainty as to oil avalability, which is fueling speculation in the futures maket. That speculation is reponsible for at least Us$ 1 in current US gallon prices.

[chrissy]

You know, it already started here , in my country. The bicycle companies are happy because their sales have gone up.

I agree , it will also lessen the pollution plus , it's a good exercise!

Better watch out for the lions/dogs on the prowl then and make sure you can pedal faster than 59km/h (40mph)

[Bearded One]

When I figure it all out I'll be sure you let you BAUTers know first!

[AGN Fuel]

You know, it already started here , in my country. The bicycle companies are happy because their sales have gone up.

I agree , it will also lessen the pollution plus , it's a good exercise!

There's your answer then. A cartel of bicycle companies have obviously colluded to stockpile all of the oil so that people are forced to buy their product. Those cunning fiends!

[korjik]

There is now way I'm going to load up 500 lbs of tools and machinery onto a bicycle and pedal 30 miles to the first Job Call and then 20 miles to the second, 15 the third, 40 to the forth (San Marcos or Wimberly?)...

You boycotters can kiss my tailpipe

wuss..

[Neverfly]

wuss..

With pride...