Insertion will increase memory usage

Hi,
I notice that whenever my application does an insert, oracle DB will increase its consumption. As described in numerous posts in the forum, the memory is not released after the operation stops. However, when the application calls the connection.close() method, memory consumed earlier on will be reclaimed.
I am wondering, if connection pooling is used (where connection is not disconnected but put back into the pool), the system will eventually run out of memory. Is this a correct assumption?
The scenario is observed in a server with the following specs:
Oracle DB: 9i Release 1
OS: Windows 2000 SP 4
Processor: 2 x Intel Xeon 1.8Ghz
Ram: 1GB
As i am not a DBA, i am not sure of the values in PGA, SGA etc. The application uses Oracle JDBC Type 4 driver (ojdbc14.jar) to do the insertion via a prepared statement.
Please advice. Thanks.

Any insight is greatly appreciated :)

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