If the price of oil increases, the price of plastic bags would likely increase due to the dependence on oil for plastic production. Innovations in drilling technology may lower costs in the future, but immediate impacts of oil price hikes are generally seen in rising prices for oil-based products.
If the price of oil were to increase, the price of plastic bags would likely increase as well. The cost of raw materials, such as oil, plays a significant role in the production costs of goods like plastic bags. Hence, when oil prices go up, the cost to produce plastic bags goes up, which usually leads to higher prices for the consumer.
Moreover, if new oil-drilling equipment that is cheaper and requires fewer workers were invented, this could potentially reduce the price of extracting oil. However, this would likely be a longer-term impact. In the short term, an oil price increase is typically passed on to the consumer through higher prices on products made from oil, such as plastics. Other scenarios, such as a dramatic fall in the price of alternative energies like solar or the invention of a new kind of plastic by chemical companies, could also influence supply, demand, and pricing strategies within the industry.