What is the answer to oil prices and supply.?

Low inventory and tight supply seems to be the driving force behind the insane price of oil. I don't understand why more refineries are not being build and the government is not trying to find a solution for us...help!!!What is the answer to oil prices and supply.?
There truly is no real long term solution to this problem at all. The solution is to pump billions into alternative fuels and to try develop new sources of energy.





The problem is diminishing supply and increasing demand.





Developing nations like China, India, Brazil and others are developing at a fast pace and as they do so the demand for oil and energy increases almost exponentially. China's population, for example, is becoming increasingly urban and far more mobile with a rapidly expanding automotive market as more Chinese opt for Vehicle ownership now.





These developing nations are now competing with the US and others for the limited energy resources available today. Hence increasing demand. This pushes the limited new sources of oil to the limit and thus it becomes more scarce and as any resoucrce becomes scarce its value skyrockets.





The trend will never backtrack. They are not making new oil the reserves and oil dfields we have today is all we have. Get used to higher prices, conserve, and buy more fuel efficient cars. Do what you can to encourage alternative energy production.What is the answer to oil prices and supply.?
The U.S. Senate Commerce Committee held a hearing on this very issue on June 3 2008, last Tuesday. The hearing was titled Energy Market Manipulation and Federal Enforcement Regimes. For a real eye opener, take a look at the testimony from that hearing:





http://commerce.senate.gov/public/index.鈥?/a>





In particular look at the testimony of Michael Greenberger, who served as the Director of the Division of Trading and Markets at the Commodity Futures Trading Commission from September 1997 to September 1999:





http://commerce.senate.gov/public/_files鈥?/a>





After reading this stuff, you will understand what exactly is going on with oil. You are paying at least $1 more for a gallon of gas than you would pay under non-manipulated supply and demand.





Any explanations that blame factors such as increased demand from China and India, dwindling supply, or ';peak oil';, are simply irrelevant. Nobody knows what the actual driving forces are, nor their actual effect, so long as large scale speculators such as hedge funds and Morgan Stanley (the latter is actually buying and stockpiling oil as a hedge against the falling dollar) continue to manipulate the price in unregulated markets.





Don't take my word for it -- read the testimony above. You'll gain a good clear understanding of what exactly has been going on.
well first off the president is an idiot


and the demand for oil is soo high they don't have enough to supply it which i swhy it costs more


and more refineries aren't opened because there aren't many places where we can find oil and all the ones that are open that we don't get oil from don't like the US very much because of the president


so right now we are SOLs
Drill locally. Stop buying from forign countries.





Venezula drills their own oil and only pays .14 cents per gallon (US $).





But the tree huggers don't want that, and want high gas prices so there is less gas usage. Republicans don't complain because they are making $$$.
In the long term nothing can be done.


Oil will run out.