Although more can be produced, we are working at the moment at 85% of
capacity for production and 98% for transport, which means that the
system is saturated.
Refining is also at saturation point.
So, the problem is mostly supply..
But remember that only 42% of the oil is used for gaz, the rest is used
for electricity, heating, plastic, and fertilizer! So, if we keep
burning oil, we wont have anything to eat in the future!
Mostly this is because there is no chance of supply increasing
enough to reduce prices. The producers all sell as much as they can
Well, I tried to stay out of this so it would die, but the above
may not be correct as it applied to crude oil...in fact, it's obviously
incorrect for crude. OPEC restricts the number of barrels sold to
price every day, and even the wells in Texas start and stop in response
market price. The supply is artificially manipulated.
Is every refinery in the US working at capacity? How about those in
countries. We import refined diesel, I don't know about gasoline.