"Where oil is first found is in the minds of men"
Wallace Pratt (1885-1981)

Wednesday, 20 April 2011

More About The Oil Market

The Oil Market is a very complex market to this date; we need oil for just about everything we do in our lives. I'm going to start with the basics, oil endangered natural resource, it is drilled from deep in the ground. A lot of oil comes from under a body of water, considering the land is made up of 70% water, so that is why you hear about oil spills, one of the most recent one is the BP oil spill in the Gulf of Mexico (More posts to come explaining the situation). There are so many things that can go wrong, that hurts the environment so why do we take all these risks? Because we need oil! You would be surprised on how many things use the oil that we get. Oil is used to make plastic, buildings, cars, and even toothpaste! But the more oil we use, the scarcer it becomes, making the oil prices to rise, making the products that use oil rise in price. As I said before, the most noticeable change is the gas prices. About 5 years ago, gas prices were around 60-80 cents per liter. Now, its average is around 130 cents per liter, as you can see that is a huge jump.

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