Rising Oil Prices

Rising Oil Prices

In recent years Oil Prices have risen excessively bringing discomfort to drivers and pedestrians alike. There are different reasons for the recent hike in oil prices that seem to affect everything from gas to food. There are several reasons causing this sudden discomfort around the globe.

The War in Iraq and steady unrest in the Middle East is just one of the causes of the rise in oil prices. Between the 1980s and September of 2003 oil prices resided below $25/barrel until the Iraq War started in 2003, The Production capacity of this war stricken nation was cut down by more than a million barrels per day because of difficulty in securing the safety of oil workers. Drilling Stations became primes targets for rebels and terrorists alike as the war progressed. The Persian Gulf which is also the major pathway for the distribution of oil from Middle Eastern Countries is located right between the Arabian Peninsula and Iran, Iran now being considered a threat and being in control of this very important pathway didn’t help the fall in oil prices either.

Another Reason for the Hike in Oil Prices is the ongoing Violence in the Oil Producing sector of Nigeria; The Delta region holds most of the oil in the country which is the number one export for the country but this area is also one of the poorest and least developed in the country, suffering pollution from oil wells and fumes from gas stations the people in that area rebelled and started terrorizing pipelines and oil rigs killing and kidnapping workers. This is an Extremely Dangerous area as my Own Father was almost kidnapped in this area in 2003.

The infamous Hurricane Katrina can also be blamed for the rise because of its damage to offshore oil rigs in the Gulf of Mexico right after the Hurricane gas prices rose sharply in American states. Not only Hurricanes affect oil production many other natural