Supply, Demand, and Price Connections: A Statistical Analysis of Oil Prices in the U.S. There are many ways of investigating the connection between supply and demand in the realm of energy. In both classical and neoclassical economic theory, economists argued that the supply of fuel sources was a determinant of price, which in turn helped to determine demand. For much of the nineteenth century, for example, oil was an expensive (and therefore in less demand than the more easily procurable wood) source of energy. At the beginning of the twentieth century, numerous discoveries of oil deposits began to take place all over the world. By the First World War, oil was in plentiful supply and served as the catalyst for a century of explosive...The end:
.....only a very few companies have reliable data on the oil supply, supports a hysterical market that will pay any price for oil. As the supply of crude oil dwindles, this trend can regrettably be expected to continue. References Beck, R.J. (2002). Worldwide petroleum industry outlook. Houston, TX: PennWell . Cordesman , A.H. (2004). Energy developments in the Middle East. Westport, CT: Greenwood. Indexmundi . (2011). World crude oil consumption by year. Retrieved from http://www.indexmundi.com/energy.aspx Inflationdata.com. (2011). Annual average domestic crude oil prices. Retrieved from http://inflationdata.com/inflation/inflation_rate/Historical_Oil_Prices_Table.asp OECD. (2011). OECD economic outlook, 2011. London, England: OECD Publishing.