Petroleum Geology


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Recent News In Petroleum

(Current Events in Oil)

If you have driven a car in the last month, you are aware of rising gasoline prices. Currently regular gasoline averages $1.78 per gallon, 19 cents more than at the same time last year. There are many reasons for rising gasoline prices. One of the main reasons for this increase in gas prices is that while the supply of gasoline is more or less constant, demand is increasing. As more people in newly industrializing countries such as China continue to purchase cars, the gas prices will continue to rise. Oil imports into China are up about thirty-six percent in the last year alone (Analysis). Another big reason for the increase in gas prices is oil is becoming more difficult to find and more expensive to extract. Because of the previous reasons stated, an increase in gasoline prices overtime is inevitable. Many people think that the age of oil is over. Walter Yongquist states that by 2005, it will cost just as much to extract oil as it now sells for; therefore, at current prices it will no longer be a profitable business. David Goldstein, author of Out of Gas, shows evidence that the worldwide production of petroleum will peak within the next ten years (Bainerman).

One recent article uncovers some better news about oil. Since 1980, people reduced the amount of their income they spend on energy from eight percent to less than five percent of their yearly income. Although gas prices seemed to have recently sky rocketed, it was much worse in 1979 and 1990, when gas prices doubled and even tripled in just months (Schwartz). If this doesn't have you worried, it sure has many other people worried. The new hybrid Toyota Prius, which gets almost 50 miles to the gallon, is on backorder for six to twelve months. The sale of hybrid cars have skyrocketed from zero in 1999 to 36,000 currently (Murphy). Even GM knows that these hybrid cars are the cars of the future and is developing a hybrid truck, which would increase the fuel economy by ten to fifteen percent (Truett). Isn't it strange thinking of a fuel economic truck? Aren't they supposed to be gas guzzlers.