Oil market

[Scythe13]

This is an interesting point, because it shows that we have 'emergency' supplies.

Most of Texas stopped their oil production simply because it was cheaper to import oil from another country. The oil fields in Texas still have plenty of stores.

The same goes to most places. I was speaking to a guy who's friend has an oil company. He said that of all the successful wells they drill, for every 3 they dig, they cap 1 or 2 of them. This might be only a modern phenominon, but it still shows there is plenty of oil round and about.

One of the major causes of the increase in oil price, other than tax, is the devaluing of the dollar. All oil has to be measured by the dollar after the OPEC (I'm pretty sure it was OPEC) agreement. If the dollar is falling in purchasing power, the rest of the world feels the hit on fuel and other things like that.