How does scarcity problem affect the price of oil?

how does scarcity problem affect the price of oil?How does scarcity problem affect the price of oil?
The more scarce it becomes, the higher the price.





If scarcity decreases, prices decrease.How does scarcity problem affect the price of oil?
I'd like to know how prohibiting the United States from drilling its own oil promotes ';energy independence.';





Feinstein and the others still involved with Indonesian oil, I assume...
Is this an essay prompt for Econ110?





The obvious answer would be that too many people drilling will deplete the world's resources. However, the 'Scarcity Problem' in economics arises when a communal good that is ordinarily sustainable is overused. Fishing is a good example. Restrictions are set to ensure that there will always be enough fish.





My answer would be that if a government approaches oil in the same manner, it will only prolong new development of alternative fuels. If you artificially keep the price of oil low, it is a disincentive for companies like BP, Shell, Chevron, GM, and Ford to come up with new ways to make money in a multi-trillion dollar market.