4. Subsidized oil. Some countries help to subsidize the price of oil to allow their consumers cheaper access. So long as the price in these countries is controlled, demand will stay the same.
3. A significant dent in demand isn’t on the horizon. Hybrid cars and renewable energies offer a peak into the crystal ball about our transportation and energy futures, but we’re a long way away from a time when they’re the rule and not the exception. Globally, the cost of these new technologies is still prohibitively expensive, and while rising fuel costs could send this transition into overdrive, current projections aren’t very encouraging.
2. Diminishing quality of oil resources. As oil fields mature, their resources drop in purity and become more expensive to extract.
1. Not much incentive for oil companies to provide relief. Sure, profit margins in production and refining shrink as businesses compete to offer a cheaper product to weary consumers, but does that mean companies are making less money? Not when prices are this high. Look for the big oil companies to continue reporting record earnings as prices and demand continue to climb.