That however, only answers one part of the question: the price of oil is determined by profitability (which should be a no-brainer anyways, any company with even the slightest bit of common sense is always going to want to profit)-AKA supply; the other side is demand.

Fact of the matter is, there is becoming a high dependency on oil in every day life. It doesn’t just affect what you pay at the pump. The entire world now depends on oil. The food you buy every week, they have to be transported somehow. Right? I mean, c’mon: you don’t get your food magically! Even the farmers are affected by oil, seeing that’s how they fuel their machinery. Same is true about clothing, video games, toys, you name it. Our entire military depends on oil, too.

But now another variable has entered the demand of oil: China. Now that China has become more submerged in the world, a bigger fish in such a small world, there is bound to be an influx of oil prices since more people in China are going to be using oil, just as much as America.

So to lower the price of oil, you must first make it more profitable per barrel produced. It’s not going to happen, anymore. Realistically, the break-even prices across the world are going to in a matter of years increase significantly. Why might that be? Because in some years (contrary to what the oil companies, governments, and even environmentalists tell you) down the road, oil is going to have run out. Even if we start drilling in Alaska and off Florida, prices are not going to drop in the long-term.

Also, most oil fields are owned by dictators (Hugo Chavez) or by states that hate the Western world but don’t mind profiting off our “sins” (Saudi Arabia).

Now then, that question is finally answered: IT SIMPLY IS NOT GOING TO HAPPEN! No matter how you look at it, prices are not going to drop-not this time. One way or another, this is the end of one of the most powerful eras in history and as what has happened will occur again: an evolutionary cycle. Good or bad, it’ll happen.