Why is oil so damn expensive?

Great article in The Economist on oil prices and what’s causing their painful rise. Double, double, oil and trouble | Economist.com:

In the short run, neither demand for nor supply of oil is very elastic. It takes time for people to replace their old guzzlers with more fuel-efficient cars, or to switch to jobs with shorter commutes, or to move closer to public transport. By the same token, it can take ten years or more to develop an oilfield after its discovery—and that does not include the time firms need to bolster their exploration units.

In short, nothing related to oil consumption changes quickly. It takes a decade for consumers to fully adjust to prices and the same amount of time for producers to field new technology and start mining new discoveries.

In the mean time, this little scooter is looking better and better!

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