The Petroleum Cycle
- Oil and gas exist in the earth in limited amounts. Hydrocarbons are a finite energy source.
- Oil and gas are the preferred energy sources of the USA and the world.
- As the price of oil goes down, consumption goes up.
- As consumption goes up, prices may also rise in response to the demand and the availability of supplies.
- As the price of oil remains high, consumption goes down.
- With less oil consumed, oversupply results, and prices go down.
- See #3