Oil Dependency - What are the Costs?

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What is the True Cost of Our Dependency on Oil? by David Gayler

Last year demand for oil in the world's six largest exporters increased by over 300,000 barrels but their exports fell by more than 500,000 barrels. The laws of supply and demand ultimately determine the cost of oil, the demand from China in particular at this moment. Those who cannot afford the price rises are being squeezed out of the marketplace, and this will happen more and more unless there is a dramatic fall in demand, only a severe recession could cause that.

When oil starts to run out (or should I say, when demand exceeds supply capabilities), its going to be hell. Oil markets, have huge political and economic significance. Those that control the supply also wield enormous economic and political power. OPEC, believes that rocketing fuel prices are not a result of supply and demand, but are caused by rampant speculation and Western government policies, and has used this belief as an excuse not to raise production to the levels demanded by the West.

Economy Being Destroyed?

There are those that say they just want to destroy the America economy bit by bit, and show the US they have the power and strength to do so, but the US won't back down easily. Witness the continuing presence of troops in the Middle East.

From time to time as more sectors are priced out of the oil market prices will more than likely fall slightly. However, this will usually be followed by another sharp rise in price again. With petrol being so important to us in our everyday lives, inflation in the economy will be the result of continuing price rises, effecting us both nationally and globally. Few things impact the world economy as much as the price of oil.

The International Situation

Nationalism in some countries has compounded the problem and it truly is a global situation. Reuters reported that: "Countries like China and India, along with Gulf nations whose retail oil prices are kept below global prices, contributed 61 percent of the increase in global consumption of crude oil from 2000 to 2006, according to JP Morgan."

What are the Costs to you?

The increased risks of terror attacks adds an additional premium, including insurance costs, to the price of oil. Once the price of oil rises, costs also rise for transportation companies. With their profit margins being squeezed they are forced to raise their prices. This then carries down the chain to the next set of companies that rely on them for transportation. Rising oil prices increase costs for all those companies which are then passed on to the consumer; you!

Long-Term Solutions

We must, of course, consume less fossil fuels, invest in renewable energy sources and new technologies like hydrogen-fuelled cars, and determine whether the benefits of biofuels outweigh the costs in terms of food inflation for the developing world. One thing is for sure. We cannot continue to be held to ransom by oil producing countries.

What Can you Do?

You might be asking yourself what you can do to change this situation. The first advice is lower consumption. If we all applied only that bit of advice, oil dependency would drop dramatically.

The best way to lower your consumption, rather than just never use your car again, is to fit a hydrogen on demand system. With people getting an average double or triple mileage out of the same amount of gas, just this alone would halve the amount of gas that is used nationwide.

How Does Someone Get Started?

Don't worry. I have reviewed the top hydrogen fuel cell products on the market for your convenience. All of my recommendations are easy to follow and give great support. That way you know you can have your fuel cell built in no time. Click Here Now.

Don't forget to download my free ebook to start saving money right away and beat the gas pump monster.

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