The price of crude oil is at an all time low, but that doesn’t mean that prices are going to slow down for longer. Oil producers have long memories and are always looking for ways to raise their prices, but, as we have found out, the longer the oil stays at a level lower than $30 a barrel, the higher the price goes.
We’ve known for quite some time that crude oil prices have been in the tank for a few years now, and that’s despite the fact that the price of oil is one of the lowest levels since the oil embargo in the early 1970s. The only reason these prices are so low is because the US is importing more oil than it is exporting, so the higher prices are just the result of the higher oil prices.
This is also a good reason to read up on some of the most recent articles posted by our own David Smith and his colleague at the NYTimes, Michael Hiltbrand. In the NYTimes article we read, Hiltbrand and Smith discuss why the price of crude oil has been on the rise lately.
Hiltbrand and Smith speculate that this rise is due to the fact that the US is now using more oil to fuel the growth of our economy than we were in the early 1970s. In other words, the US is using more oil for less oil, and thus the rising prices of oil are caused by the US increasing our demand for oil. This is certainly a bit bizarre, but the fact that we are using more oil for less oil is something worth paying attention to.
Not only is this speculation bizarre, but it’s also entirely wrong. If the US is using more oil for less oil, then the US is also using more oil than it used to, and thus is using more oil than it used to. There is no obvious connection between the rise in oil prices and how much oil the US is using.
In fact, there is evidence that the US is using more oil than it used to. Oil companies are constantly looking at the US demand and calculating what additional energy they could generate by increasing production. This is called “spot” oil production. Oil companies don’t just want to pump as much oil as possible, they also want to maximize the amount of natural gas they can extract (usually by fracking) if they can extract that much oil.
The US is always looking for more oil. Oil companies are always looking for more oil, so it’s hard getting them to invest enough to feed their own resources and make their own profits. One of our favorite quotes comes from a story about a guy who made the biggest oil by extracting 20,000 barrels of oil from the sky. He was just a kid with a whole bunch of computers. He didn’t even make any money.
This is a really big problem right now because as the world runs out of oil, the prices of oil will go up and the prices of everything else will go down. The current oil price of $60 a barrel is the equivalent of $100,000 a barrel. That’s enough to keep the economy going for a year and a half. So you won’t even make a buck from this.
This is actually a good thing because as the world runs out of oil, it will be a lot easier to produce stuff and sell it. But it is bad because oil is still in the ground and so the prices will go up even more. So now all the companies that are trying to dig up oil will be trying to keep the price down. And all the people that are trying to find oil will be even more desperate to sell it.
So its a good thing that oil prices have fallen because it means that we can pump and refine more stuff and make money off of it. It also means that the world runs out of oil, which means we can sell it in more places, which means that we can make more money from it. But it also means that the price of crude is rising again, which means that there are fewer places to sell it. So all in all, it’s a pretty good thing.