An increase of 25 per cent in the price of oil would have numerous results. Firstly, it would lead to sharp rises in the cost of transport and freight, thus affecting the price of most goods. Clearly, businesses for which fuel was a significant proportion of their costs, such as airlines, would find itdifficult to maintain profitability. Another consequence would be a reduction in oil consumption as marginal users switched to alternative fuels, such as gas, or made economies. There would also be increased investment in exploration for oil, as the oil companies attempted to increase supply, and this in turn would stimulate demand for equipment such as oil rigs. Finally, there would be a number of more localised effects, for instance a change in demand from larger to smaller and more economical vehicles.