What's causing Jet Fuel prices to increase so rapidly ??

Question

I mean: What's the main reason that's causing Jet Fuel prices to increase so much is such a small amount of time????

Because right now Jet Fuel prices is double from what it was exactly 12 months ago or 1 year ago.

My question is: What's causing this? what's the main reason that has caused Jet Fuel prices to double in just 1 year ??

Because I thought that the World was supposed to run out of Oil in around 2035 or 2038 but not right now 2008.

WARNING: Anybody that tells me the main reason & answers all of my questions above correctly will be chosen as Best Answer.

Answer 1

The answer is simple

Right now the demand for jet fuel i skyrocketing. The only source of fuel for airplanes is oil. The supply of oil is running out. Yes one might think, but why is the price still going up? Because the demand for oil has passes the supply, there is not enough to go around. When somehting get more rare, it grows more expensive. Unless there is a large oil discovery, we are expected to run out somewhere between 2035-2050.

Answer 2

Jet fuel is made from crude oil, which has doubled over the past year as well.  There's the answer to your question right there!

Crude oil has been going up for several reasons.   The weak US dollar, which crude oil is priced in, has been going down, so it takes more and more dollars to buy oil, therefore increasing the price.  Also, while the world isn't running out of oil yet, it is running out of easy to reach oil.  9 out of the 10 largest oil fields in the world are in decline, and we're not finding reserves fast enough to replace this.  There was a significant new oil discovery this year off the cost of Brazil, but that oil field is 10,000 ft. below sea level, and then they have to drill through a mile of salt to actually get to the oil.  Do you think it's more expensive to drill for that oil, or to drill for oil 500 ft. below Texas somewhere?  These costs have to be passed on to the consumers, otherwise if the oil companies couldn't make money on them, they would never drill them.

Answer 3

There is still enough oil for 30-40 years but its getting scarce. Oil production now is lower than it was 3 years ago while demand is higher. Next year will be worse and the following year even worse until its gone for good.

Answer 4

The same reason gasoline & diesel is going up so rapidly: GREED. The oil companies know they have us over a barrel and are using every little excuse that comes along to raise the cost.

Answer 5

good time to switch to electric

Answer 6

Jet fuel, home heating oil are diesel fuel.  There is a shortage of diesel fuel in Europe.  There aren't enough refineries to make more.  The US hasn't built a new refinery in 30 years.

Answer 7

lacking of jet fuel is main reason for increse of prices

Answer 8

I have not heard of a particular year when we will runout of oil, it is unlikely we will ever runout, for one simple reason, long before we have none left, the cost will be so high that any alternate will be much cheaper

Answer 9

What fuel in the U.S. isnt increasing rapidly??? Is a better question