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The basic answer would be the sheer amount of enery that needs to be used to extract oil (it's getting harder and harder as deposits decrease) as well as the global supply and demand that pushes the price up further. Couple in stringent environmental regulations in much (but not all) of the world, the cost of producing a barrel of oil again increases.
Given the lowest paid man on a north American rig is the floorhand, and he nets usually between 6-12 K (this is Canadian dollars) a month for the hours and work, that adds a significant cost as well the the extraction process just to keep the wells pumping. Add in the cost of drilling the hole (they make as much or more than the service personnel).
Then there is transportation. Depending on where you are this might require a tank truck, rail line or other heavy transport method to move the oil to the refinery if it is not cost effective to pay for pipeline infrastructure, which in itself can cost millions or billions.
So not it's at the refinery... so the process starts all over proccessing the crude to usable oil products. I'm not really familiar with any of the refining, but i'd imagine that would have a lot to do with the cost of finished oil products such as gas and diesel to the public.
I'm no expert, just a rig worker in Northern Canada, that's just what I see from my end on the lease servicing the wells.
What else can I help you with?
Why is oil so expensive like gold?
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Is oil expensive or cheap?
is oil cheap or expensive
Why perfumes are expensive?
THEY ARE SO EXPENSIVE BECAUSE EXPENSIVE PERFUME HAS A CERTIAN AMOUNT OF NATURAL INGREDIANTS WHICH IS VERY EXPENSIVE actually, its because the expensive perfumes usually contain musk oil.
Why has oil become so expensive?
It's becoming more scarce in the world.
Why will plastic products become more expensive in the future?
Plastics are made mostly from petroleum, and petroleum is getting more expensive. It is a non renewable resource, in the sense that there is only so much oil in the oil wells, and when it is pumped out, it does not get replaced. We might have to switch to agricultural sources of oil, which will be more expensive.
Is crude oil expensive or inexpensive?
expensive.
What are the benefits of drilling in Alaska?
Well, they get oil and right now oil is expensive so they get more money. Plus not many people live there so to them it is better to drill there.
Why is oil sometimes difficult to get from middle east and more expensive?
The oil is so expensive because our oil comes from the Persian Gulf and is shipped here. Since oil is originally from that area, it's pretty expensive. The distance is not the major factor in the price of a barrel of oil. The most important factors are the limited production of OPEC and the uncertainty caused by constant wars in the Middle East.
Is oil expensive?
Yes, its very expensive. Infact, i dont really know. Um.. F****** h*** I DONT KNOW! im doing this for a piece of homework. So if someone cud please just answer this question CORRECTLY and tell me why it is expensive or how it is expensive. AND ITS MENT TO BE: IS OIL EXPENSIVE TO USE? could anyone reply to this question above ^^^ pleeaseee xXx :) Thanks SophhXxX
What engine oil for a Mercedes c220?
expensive oil
Why did whaling become competitive?
Because at one time whale oil was very expensive so people would kill whales to get it. Then they found oil on land underground and it was easier to get oil from the oil than whales.
How is cracking useful in an oil refinery?
modern tech is to expensive so cracking IS USED BECAUSE IT IS CHEAP AND EASY
