You want political reason or physical reasons? The biggest problems are all political, so just write about turbulence in the Middle East, and how the oil companies use any little thing going on in that region as an excuse to jack up the prices.What are the problmes caused by the extraction of oil and its transport? (Itz my homework =/)?
Environmental pollution caused by extraction processes. Drilling mud, and pollution when the components are manufactured.
Transport....cost, large tankers cause massive environmental damage if they ';leak'; after a collision, some unscrupulous ';captains'; wash their tanks at sea and cause ';slicks';. Pipelines used to transport oil can be tampered with or fracture causing environmental problems.
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