What is the cause of oil crisis today?

Question

2nd Q,

Are there any relationship between oil depletion and production of oil? Can you give example?

Answer 1

oil depletion?  we have enough oil in the usa to keep us going just fine, but some brilliant bureaucrat decided that we needed to be neck high in OPEC's poopoo.

Answer 2

There is no oil crisis, there is an oil price crisis.  The oil supply is not in danger any time soon.  The oil prices are a reflection of the current political situations throughout the world, coupled with the massively increasing usage in developing countries and China.

Answer 3

power, control, and greed

Answer 4

Actually there are several reasons why the price of gasoline are growing this high at this point in time.

First and most importantly the weak dollar. Our currency has grown so weak over the past year, that countries like Brazil, India and others no longer accept it!!! This means that we need more US dollars to pay for the same amount of oil

as somebody in EU. This cost gets passed on to the consumer.

Second, oil producing countries set quota's for output IN ADVANCE of actual usage. So what they try and do is predict how much oil will be needed by the oil a few months from now, and then plan for that amount of output. If the world actually needs more than we see a hike in prices. If they over shoot their estimates we still pay alot!

Third, oil is traded on the stock markets around the world. Investors pay per barrell and depending on the extremely sensitive feelers of the traders, oil can get priced extremely

high because of world conditions.

Hope this helps.

But having said all that....it still is imperative to do all we can to conserve energy. Reducing our use of oil, gas, natural gas...etc only helps to strengthen our economy and reduce pollution, which regardless of your feelings on global warming.....pollution is pollution. Burning oil, coal or gas unnecessarily is a bad as throwing your plastic bottles into the street and dumping chemicals down the drain or into a river..Pollution is Pollution...plain and simple.

Answer 5

Yes.  More people are using it and the rate of discovery is declining, I'm told.  China, in particular, is using ever more cars.

OPEC is refusing to increase production; so,with demand increasing, prices are rising.  That doesn't explain all of it.  The rest is the dollar's decrease in value.

Answer 6

It's the lack of political will to get the oil.  The amount of oil discovered in the last 5 years exceeds the amount found in the 25 years before that.

Politicians are keeping the price of oil high as a way to subsidize alternative energy, as higher oil prices makes the cost of investing in new technology look more profitable.

Answer 7

The oil problem is that some think that we are about to run out. The plants take in the CO2 and give us back the O2 and keeps the C, which it converts to oil & Gas.

Answer 8

Oil prices are up primarily because of the weak dollar.

Oil prices are quoted in dollars, you see.

Gold prices are up even further.

Could we explore and drill more?   Yes.    More importantly we could expand our capacity to refine heavy and sour grades of crude, the price of which does not go up in lockstep with higher grades.

Supply and demand was the factor from mid-'04 through mid-'06 but between '02 and mid-'04, and since mid-'06, it's almost entirely the weak dollar.