Expect ol prices to increase over the next decade

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Reference no: EM13152400

We can expect ol prices to increase over the next decade. First, oil reserves are steadily dwindling. As oil producers have to use more expensive technology to locate oil and bring it to the surface, it will cost more.Productions will be hampered because of political stability in Iraq. Russia has large oil fields, but it's pipelinesare decayed and will take years to replace in order to develop an efficient delivery system. Second, demand is rising sharply through out the world. India and China are booming. They are increasing their industrial production, and hundreds of millions of their citizens are becoming consumers. China, for example, has seen a surge in two-car families, something that was almost unheard of just ten years ago. With a growing demand for a limited amount of oil, petroleum prices will definitely rise.

Reference no: EM13152400


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