The following research uncovers the causes and effects of fluctuating prices of oil in the United States. A concentration on the last forty years yields insight into the investment decisions made by the US based on events which affect the oil industry. The recent, significant increase in oil prices has negatively affected the US economy, and has thus been a source of much research and debate. Most economic analysts agree that the simple laws of supply and demand are working and should not cause concern. Speculation in the market has caused an increase in demand, and is the major debate among economists and financial analysts. Since the price per barrel of oil affects gas prices, US consumers are demanding political intervention for relief at the pump.