Whats the deal with OIL prices will it ever come down???!!!??!?!!?

Not in the long term. The basic problem with oil is that demand keeps growing as third world economies develop, heightening the demand for oil. With China and other developing nations growing quickly, the demand for cars and other goods that require oil are increasing dramatically. On the supply side, most of the places to explore for oil have already been explored, so there isn't a lot of new supply, and not many ideas of where to get it On top of that, production from existing fields decline over time. So we need a lot of new oil finds to maintain existing production, let alone increase it, while demand is increasing quickly. Also, the price of oil is relatively inelastic, as economists would say. One study I saw when I was in school said that over the short run, it took a 10% increase in the price of oil to reduce demand by 1%. So until people and companies realize the increase is permanent, and start to make choices like replacing cars, appliances, and business equipment with more energy efficient versions, demand isn't likely to drop much. That should start to happen over the next few years, which ought to help some.





A lot is being made of the Alaska Wildlife Reserve, where there are potentially 10 billion barrels of oil to be found. However, we are using 20 million barrels a day. 10 billion divide by 20 million says that even if that panned out, the ANWR would only provide the US with oil for about 500 days, or less than 1 1/2 years of oil demand for the US. So what then? This is a bandaid, not a solution. The other thing is that it takes many years to develop a new field, and the infrastructure to get the oil to users. Even if we started now, it'd be many years before we could get that resource going. Regardless of how you feel about the environmental issues involved.





Current known world reserves are estimated at about 1 trillion barrels...which sounds like a lot, but is only about 32 years of supply at the current worldwide demand of 85 million barrels a day. If demand continues to grow, then it won't even last that long. We are not replacing reserves as fast as we are using them. There was a big discovery this year that made the news in Brazil of 5-8 billion barrels of oil, which sounds great...until you figure that it is only about 3 months of world demand. The world is using 31 billion barrels a year of oil...that's what we need to be replacing on a yearly basis just to break even...and it isn't happening.





There are other potential sources of oil, but they are in places where we don't control. Russia has huge untapped reserves, and would probably be the best hope for additional supply. However, the government and state owned oil companies don't have the resources to properly develop those reserves, and foreign companies aren't being allowed to do it for them. So vast potential supplies languish. The amount of oil being produced by Venezuela has dropped dramatically due to Hugo Chavez's incompetence. They were on their way to 6 million barrels per day before Hugo showed up...now they are less than half of that, and falling. Other countries production is falling as their fields age. Iran, Mexico, and Indonesia are on this list. U.S. oil production has been falling since 1970. This is a natural progression...oil field production starts high, and drops over time.





In spite of politicians claims, there isn't much that can be done about oil prices, at least in the short run. McCain and Clinton would cut the gas tax (and thus, presumably defer the highway maintenance costs those taxes pay for) ';temporarily';. This solution is disingenous...just another case of forsaking long term needs for ineffective short term fixes. OPEC is an easy target, but they have been mostly ineffective at controlling prices over that time because the incentive to cheat was too much. The reason prices are soaring now is because none of them have any extra capacity left...nobody can cheat anymore.





Longer term solutions will be to develop alternative energy sources, development and deployment of more energy efficient cars, appliances, and other energy using equipment in both home and business applications, and for consumers to become more conscious of the energy choices they make. All of these should reduce long term oil demand. Oil field development could be a part of the mix as well, but it will have to be something on the order of hundreds of billions of barrels of reserves, not a few billion to make any significant difference. We may also have to relook at things such as nuclear power, or other forms of energy that have already been developed.Whats the deal with OIL prices will it ever come down???!!!??!?!!?
There may be a short term drop in oil prices because of the sharp uptrend in the commodities market and the strength that the dollar is regaining but over the long term it is going to continue going up. Goldman Sachs just came out and estimated that it would go up to $200 / barrelWhats the deal with OIL prices will it ever come down???!!!??!?!!?
When those idiots in Congress have to start paying for their own gas, then they might actually pass a long-term energy plan that involves drilling in the Arctic and off the costs of California and the east coast. I hope all of those polar bears are sending you money for your $5 gas.
no never , in India prices never come down? this is real tragedy of our country.. In reality we say many company coming in same field is good competetion, but there is monopoly , the company unite and rules us ha haaa..
DEMAND%26gt;SUPPLY


GAS FOR AUTO


EDIBLE OILS


CRUDE OIL FRACTIONS


- VASELINE


- SOME PLASTIC PRODUCTS


- GREASE


- ETC


EVEN US IS TRYING TO CONVERT BIODEISEL - FROM PLANTATIONS


YOUR ETHANOL PRODUCING EDIBLES R ALSO BEING CONVERTED INTO ETHANOL PRODUCTIONS - RATHER THAN EDIBLE PRODUCTS FOR COMMON MAN


THE COMMON MAN IS ALSO TAKING FOR GRANTED THAT HE CAN KEEEP ON USING NATURES RESOURCES INDEFINITELY


ETHANOL IS MADE FROM


- SUGAR BASICALLY


- - SUGARCANE


- - BEETROOT


- - ALL THAT FERMENTS (so tomorrow don't b surprised if u don't have bread to eat - even wheat is used to make ethanol with sugar - and all that decays produces methane gas or alcohol fermentation process)





U HAVE THE ANSWER RITE IN FRONT OF U


WE THE HUMANS THEMSELVES ELECT THOSE WHO MAKE PROMISES OF OUR PROSPERITY - AND THENCE UNDERLIES DEVASTATION UNDER THE MASK OF PROSPERITY





IF U WANNA KNOW MORE JUST EMAIL ME ON MY ID
There are many factors, supply and demand being one of them. Another is the dollar, oil is traded in dollars and right now it is not as strong as it was before
It will - for a while. The current runup is due in part to speculation. But the long-term trend is higher. Supply and demand.
markets go up


and markets go down


take it from me bugs bunny


hippity hopity


I know all about up and down
Yes they could if the government would let companies drill in alaska, there is a WHOLE LOT of oil in Alaska but we cant go get it so, write your local congressman!!!
sorry never


as it continues to be depleted it will cost more.





When I lived in Turkey in '98 gas cost about $4 per liter (3.78 liters per gallon)
No, thanks to Bush.. Oil's heading to $150 per barrel now..


http://dividend-growth.blogspot.com/
NO...