2006-07-24 21:31:42 · 5 answers · asked by soleofsoul 3 in Social Science ➔ Economics
Well there are oil reserves all over the world, but a lot of them are not rigged yet, a lot of them haven't been discovered, and certain countries only export to certain countries or certain parts of the continent. For example, Russian oil mostly goes to China or Europe. However, we must depend on Middle Eastern oil, which really blows. There's about 30 more years left of oil under the Middle East. I can't wait till it runs out.
However, to answer your question, the market (economy) dictates whether or not there will be fuel shortages. And what dictates the market a lot of the time are politics. Both go hand in hand.
2006-07-24 21:36:02 · answer #1 · answered by Tulip 3 · 0⤊ 0⤋
No, oil companies do not make it up. However there is a non-market force increasing prices and that is OPEC. State-owened oil producers are much, much larger than even Exxon. The Saudi government can hugely influence the price of oil. That is why before a presidential election in the US the price usually falls. The president asks the Saudis to do so in return for other favors.
The current price is not caused by Saudis or OPEC restricting supply but by China's growing demand and supply side shortfalls, especially Iraq and political conditions in Nigeria and Venezuela.
It is immaterial whether the US gets its oil from the Middle East or Russia. There is a world price for oil, so even Europeans pay now more for oil. They have to pay more since if they wouldnt Russia would ship its oil elsewhere. Even the American domestic price is just the international price. If there is trouble in the Middle East, Alaskan oil producers and the Alaskan government benefits.
2006-07-28 13:52:01 · answer #2 · answered by martinnychk 1 · 0⤊ 0⤋
There might not be a shortage YET but it is certainly becoming more difficult to source and extract the oil, either is is deeper underground or in more difficult to reach places, hence the rising costs to the oil operators which are then passed on to us
2006-07-25 04:36:31 · answer #3 · answered by Saz 3 · 0⤊ 0⤋
I never heard there is a shortage. I heard that market speculators drive up the price every time some vandal in Nigeria defaces a refinery.
2006-07-25 04:36:31 · answer #4 · answered by Anonymous · 0⤊ 0⤋
profit
2006-07-25 04:39:54 · answer #5 · answered by Princess illusion 5 · 0⤊ 0⤋