Thursday, February 2, 2012

Oil Demand

In this article, the rapid rise in gas prices is explained. It is believed that sometime during this year, the price of gas will reach atleast $100 a barrel, and $5 a gallon. Main factors that have led to the rising prices include growing/improving economies around the world, and Americas lack of being able to drill.

In Asian countries such as China, major economic growth is taking place, thus causing a substantial increase in the demand for oil. With more people wanting more oil, the price is forced to shoot up because the supply is rapidly decreasing. It is unfortunate, but it seems that as more countries thrive, the worse off the countries that are already established are. If everyone starts demanding as much oil as the US, the world as a whole will be in a VERY bad position. Environmentally and Economically.

Generally, to off set this huge inflation of oil prices, America would just drill for it's own oil. But, because of the disaster in the Gulf, a majority of drill has ceased. Even though companies have been given the ok to start drilling again, because of regulations, the main oil wells of the Gulf are inaccessible, this making drilling in the Gulf nearly pointless at this point. The amount of oil that would come from the Gulf wouldn't even come close to lower our demand for foreign oil.


Smith said...

Do you think the US should invest billions in alternative fuel research or invest that money into alternative drilling methods?

Daniella said...

I like this post Taylor, it does explain why our gas prices are high. It is a shame that as more countries grow the worse our gas prices will become. To answer Smith's question, America should invest in alternate fuel research. If we spend a lot of money in alternative drilling methods there is only so much oil in the earth before we run out. If we invest in alternative fuel research we hopefully will find something that allows us to use a renewable resource.

Taylor said...

In response to both of you, I do believe that America will invest into alternate fuel research. BUT, based on my knowledge from environmental science, I know that the US will never, as long as they can help it, completely convert to alternate fuel. So, while some money may go into research, a lot more will probably go into finding better drilling methods and finding more wells. Even though its more logical to completely cut our selves off from oil if we have cleaner, cheaper, and renewable sources, the US will probably ALWAYS try to stay in the oil business.

Oh, and thanks Daniella.

Lindsay said...

This article reminds me about what we recently learned in AP Environmental. Like Taylor said, the US will never completely convert to alternative fuels, but I think that the should look into using more renewable energy sources because they are cheaper. Unfortunately it does take up mo space, which could be used for drilling for oil. If the prices go up like the article said, it will change other industries too, like car manufacturing.  I think that America will always use some oil for energy, but the should definitely use less than we use now. 

Amber said...

I enjoy discussing this topic because it relates to basically every single person. Nowadays it is hard to go anywhere without the use of a car because the use of transportation has become so widespread and businesses have become so spread out. It would take me hours just to walk to school or the grocery store unlike earlier times where people lived closer together and had a central meeting place for necessities like food or education. Oil is important, but at what cost? I know that if gas gets to 5$ a gallon in addition to this tough economy, my family and I will be struggling to pay for it. As a high schooler, I get paid minimum wage. Therefore, from that 7.25$, 5$ would go towards gas which I think is ridiculous. Eventually we will have to invest in alternate fueling resources because the oil we have cannot last us forever. Besides, if we did happen to discover an alternate way to fuel our machines it would be revolutionary to societies around the world.