What are the long and short term effects of soaring oil prices?

Question

What are the long and short term effects of soaring oil prices? Thanks in advance

Answer 1

Oil producing countries will continue to profit from exports to consuming countries. If the prices get too high in a country, then people will opt to use mass transit, petition the government for increased fuel economy standards in autos, and if the price gets too high, they will opt not to buy it. If they dont buy it at this high price, some other consumers in some other countries will. Oil exploration corporations will continue to operate search and development ops, such as off the coast of west africa, to try and discover new oil fields. when these are ready to be exploited, it will most likely decrease the price, due to the extra supply in the market.
The thing that I am most excited about is the R&D that is being encouraged for alt. energy resources, due to high petrol costs. Increased innovation will lead to previously unimagined possibilities in this country, which can be sold to other countries once they stop suckling at the oil teet.

Answer 2

In the short term, gas prices go up. That makes it more expensive to go places.

A result of higher gas prices is higher prices for goods. It costs more to get stuff to the store.

A bit longer term is the balance of payments between the US and other nations is effected, the US dollar may be worth less and so on.

Answer 3

Inflation.