I have been following the price of crude oil f0r several months. As you probably know, oil has been anything but stable. Today, as I was checking the price of oil on OilStats.info, I noticed that the price is remarkably low. I read an article on MSNBC, that discussed the decreasing demand for crude oil. Strangely enough, when I drove home from work, I noticed the price of gas has gone up... yet again. That's the third time in 7 days. What is even stranger yet, the number of jobs in the petroleum industry have been increasing.
I am regularly asked why this is happening. Why, if the demand for and price of oil are decreasing, is the price of gas not decreasing? Well, the simple answer is that there is a lot more involved in gasoline production then simply purchasing crude oil. There are other costs, such as oil refinement and taxes, that are reflected in the price of gas. Why then are jobs still increasing if demand is not? Simple, just because we have a surplus for the quarter doesn't mean that we have a whole lot extra. We will use up the oil and continue to use up the oil until we run out. Jobs are created in oil exploration to push this "peak oil" off as far as possible.
Monday, February 23, 2009
First Blog
Welcome to blogtastic! I'm Chris, the author and editor of all things blogtastic, the most random blog on the Web. I will be blogging about whatever strikes me as interesting. I am a computer technician and CIS instructor for a local community college. My interests include website design, computer repair, video games, music, home improvement, and my family.
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