The cost of oil

With the political season in full swing and our annual uptick in gas prices, there’s a lot of talk about how to lower the price of gas and oil.  The reality is really nicely summed up in this article at smartplanet.  The fact is, we’ve already tapped all the ‘cheap’, easily accessible oil.  While there are vast quantities of hydrocarbons still available to be extracted, the cost of doing so is quite high, and as a result, we’ll never have ‘cheap’ oil ever again.  Those new sources are also more difficult to get to (meaning more expensive).  This means that around 2014-2015, we’re expected to hit a point where global oil supply (production) decreases on a year to year basis.  Naturally, this is not going to be fun for those driving inefficient cars.  If you’re shopping for a new car, you’d be wise to consider the most fuel efficient model that you can for whatever type of vehicle you need!

It’s a really good article and worth the read, check it out here.

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