This process may have started 65-200 Million years ago. The death animal and plant remains massed one over the other in a lots of levels, and involving the action of heat and pressure these remains have been separated from air for million of years. During all this time, a part of their organic material converted to crude oil, the death marine life into rocks. This process took a long time, but it takes place even today, however in a slow rhythm.
Petroleum is developed first, after a certain time, it is turning into oil. Gas formed products arise too, in the form of natural gas. If you search the point of discoveries, then first you reach the gas material, and just after a further drilling you'll find the oil.
The search after such source points happens of course with several scientific gadgets, which are used to inspect the intensity, magnetism, sonic speed or even radioactivity of the earth's crust. All this makes the finding of oil much easier and faster.
Besides this fossil formation theory, scientists in Russia have developed another crude oil formation theory, not involving fossils as its cause. Put in perspective with the recent discoveries of methane and similar hydrocarbon compounds on Titan and in other distant places of the solar system, where no dinosaurs lived, we may give a second thought to the fossil formation theories about the origins of crude.
This theory, however, has been used since the 1950's. another theory about the origins of crude oil belongs to Russian scientists. They explained the fact, that “oil is a primordial material, which develops in the earth's interior and because of the high pressures and during the so-called “cold” eruption processes it reaches upwards to the earth crust.“ The theory has been proved by the Russians, although western scientists do not seem to take it in account. However, it shows a light of hope for the industry, which should not be afraid that it must cease further development due to lack of oil, which is enough and keeps emerging from the depths of the planet.
Remember that marketing trick: "Buy it as it lasts or tomorrow it will be gone?" Whenever you hear this from a salesman of an industrial product, stop and think that the industry can make more than you can buy. Same our earth, it produces more oil than we can consume.
The price game is more of a marketing game, rather than a panix one.