Why is the world unlikely to ever literally run out of oil?
A) There is an unlimited supply of oil.
B) As the cheap-to-produce oil gets used up, the price of oil will rise, encouraging conservation and production using more expensive techniques.
C) The demand for oil is not very high.
D) As the demand for oil increases, the quantity supplied increases as well.

Question

Quizplus · Accepted Answer

While there is not an unlimited supply of oil, the price mechanism helps to ensure that the world is unlikely to ever literally run out of oil. As the cheap-to-produce oil gets used up, the price of oil will rise, encouraging conservation and production using more expensive techniques. As the price rises, demand tends to fall while supplies tend to rise, as more expensive oil sources become economically feasible to extract.

Why Is the World Unlikely to Ever Literally Run Out