May 30, 2008

The finance of oil production

As the price of oil increases on a day to day basis, it is getting seriously hard for average motorist to sit back and keep paying up, but as they need their cars for family and work they are finding themselves no option but to pay up and get on with it.

But why is the cost of oil increasing in this manner?

There are several explanations for these increases, none of which are going to help the end user at all.

Oil is:

Difficult to Extract Oil & High Environmental Impact
Difficult to Extract Oil is an Unreliable Supply
Oil Companies are More Powerful as Profits Increase

It all boils down to supply and demand, we want it and they have it!

Source [Clean Technica]
http://cleantechnica.com/2008/05/28/3-hidden-costs-to-high-oil-prices/