Friday, May 14, 2010

Our Thirst For Oil & Drill, Drill, Drill

Despite the current large crude oil inventory and Euro skittishness lowering oil prices, over the longer term, oil prices are likely to increase. Thanks to supply (depletion of easily tapped sources and increased exploration and development costs for new sources) and demand (particularly the need to fuel growing economies) the market expects oil prices to rise in the coming years
This means more oil drilling.  WTRG Economics illustrates the relationship between oil prices and domestic US drilling activity. Despite the horrific BP drilling accident in the Gulf of Mexico, our economy and lifestyle is, and will remain for quite some time, dependant on hydrocarbons.

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