There is only a finite supply of oil and there is a greater world demand for oil that might be over the actual supplies. The price of oil will continue to rise. Also, many of the countries that supply oil to the United States are politically unstable or have also used their status as oil providers to raise prices and basically abuse their status. Since September 11th, 2001 and the war on Iraq , focus on imports has also intensified. Petroleum also contains many toxic components and even after refining, oil releases large quantities of air pollutants when combusted (including CO2 and sulfur). Air pollutants include particulate matter in the forms of soot and ash, sulfur oxides, and nitrogen oxides, which cause environmental damage in the form of acid rain and health problems such as asthma and lung disease. Petroleum is also toxic if it leaks into surface or under groundwater supplies. For example, in 1989 the Exxon Valdez oil spill killed millions of animals and plants along the Alaskan coastline, and even now the area is not entirely free of oil contamination. Oil spills cause major damage by releasing a large amount of oil into a concentrated area. More oil leaks into water supplies each year from improper disposal of used motor oil. Another difficult thing about petroleum is the issue of storage: petroleum is an inherently unstable fuel that breaks down into sludge over time. Storage tanks can easily leak oil into groundwater, and contaminants such as water and other non-oil substances frequently become mixed with stored petroleum and impair its energy efficiency. We also need to find a substitute within 50 years. Shale oil is also not efficient enough as an alternative. It is too costly, has a low net energy yield, needs a lot of water to process, causes severe land disruption, and has the same effects on air pollution and water pollution as regular oil.

Who has the World’s Oil?
Oil reserves- identified deposits from which oil can be extracted profitable at current prices with current technology
• 11 Countries compose OPEC ( Organization of Petroleum Exporting Countries)
• OPEC has 67% of the World’s crude oil reserves
• Saudi Arabia 26% followed by Iraq, Kuwait, Iran, United Arab Emirates, each with 9-10%
• Remaining reserves remain in:
1. Latin America 9%
2. Africa 7%
3. USSR 6%
4. Asia 4%
5. United States 3%
6. Western Europe 2%

• The price of a barrel of oil surged from 2004-06. Crude oil for current delivery on the New York Mercantile Exchange closed at over $75 a barrel (Spring ’06)
That is a 42 gallon barrel.
• U.S., the greatest increase has been in the demand for gasoline. American drivers use 45 percent of the gasoline consumed globally. The second biggest gas-guzzler, Japan, consumes only 5 percent of the world’s total. China is gaining quickly in its demand for oil and gasoline.
• Number of refineries in the U.S. has decreased by about two-thirds in the last twenty years to approximately 150 plants. Total production capacity has decreased from about 20 million barrels per day in 1990 to about 17.5 today.