Monday, April 4, 2011

Is oil becoming harder to find?

If oil is becoming scarce or harder to find then this would be one of the reasons for the price increases. Based on http://www.newser.com/story/112166/exxon-oil-becoming-hard-to-find.html, Exxon states that they are having trouble finding oil and that their reserves are decreasing in size. For every, 100 barrels of oil purchased they are only able to replace 95 of them.

According to http://www.telegraph.co.uk/comment/3557898/Oil-is-expensive-because-oil-is-scarce.html, three of the major oil companies, Shell, Exxon, and BP are all reporting drops in oil outputs. Exxon reported a 10% drop for the year. Non-OPEC oil production has only inscreased in Russia. Oil production is decreasing in 60 of the 98 oil producing countries.

Finding such information has made an interesting discovery for me. I have found two opposing point of views on why gas prices are so high. The idea that has is becoming scarce and that is why the prices have risen and the contrasting idea of the big oil corporations wanting to maintain profits by tac breaks and price gouging are two interesting ways of looking at things. I plan to explore more into details on both of these.

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