"Adrian Stott" <[EMAIL PROTECTED]> wrote in message news:[EMAIL PROTECTED] > "Brian" <[EMAIL PROTECTED]> wrote: > >>Is there a shortage, is any one going without, if not we are all paying >>more >>than we need to. > > The global daily production and consumption of crude oil (from which > petrol is made, of course) are very nearly in balance. However, > consumption of crude oil is increasing. If production does not also > increase, the price goes up until demand drops to the production > level.
And if the big oil companies who are also produces are prepared to bid it up enough and not produce to much then all the better for them. Tesco etc have to pay the price to stay in the game. > > It is possible to increase production (there is plenty of oil in the > ground, despite what you hear), but the new production will be at a > higher cost per barrel on average (although there is still the > potential to pump more of the cheaper Middle Eastern stuff, if the > Turks don't decide to invade Iraq etc. etc.). This again pushes the > price up. > > Crude oil is a market. If you want to buy some, you have to bid > against all the other possible buyers. Only you can define your > "need", but if you don't pay the market price you probably won't get > any oil. Very true, but the cost to get the harder to get at stuff out of the ground is well within the money the oil companies are getting now. Lets face it if you have a mile of bank suitable for moorings but only 400 boaters want it, it makes good business sense to only have enough space for 399, if you get my drift > -- Brian from Sunny Suffolk
