Is Oil Really in Short Supply?
Oil prices have been increasing drastically over the past year. Some critics argue that oil is in short supply, and that is why prices are so high. Others, however, claim that oil producing nations create the shortage. They always seem able to produce more oil when they claim that it is in short supply. According to the article "Time for OPEC to plump up its cushion", oil producing nations in the middle east found new oil supplies, or else prolonged the retirement of current oil wells. If this is true, then they are producing more oil than we think. With summer just around the corner, and oil prices on the rise, we can look forward to gasoline prices well over $2.00 per gallon. If OPEC puts a cap on oil prices, the price could remain low, but supply will dwindle. In my opinion this would increase prices as well because of the shortage. Americans are using so much fuel to operate their hummers and suburbans, that the price will remain high. If these nations really have more oil than they say, we could see a decrease in price. But if consumption remains high, so will fuel prices.