Oil_Economy - Oil and economy on the devils seesaw...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Oil and economy on the devil s seesaw Published on Energy Bulletin ( http://energybulletin. net ) Oil and economy on the devil s seesaw Published Thu, 08/14/2008 - 07:00 by Energy Bulletin Oil s rocky ride to the stratosphere seems to be over. The world price, which flirted with $150/ b altitude in July, hesitated for a while, then turned around and began to tumble back to Earth like some disabled wreckage. But this is not the development everybody hoped for -- the healthy, market-induced lessening of demand for an increasingly expensive resource, substituting away from it. The mainspring behind the turnaround is a worldwide slowdown. Recovery of lost momentum would redirect prices upward again. We are witnessing the end of the beginning of the world s oil problem and not vice versa. For the first time in history, the emerging scarcity of an omnipresent resource is telegraphing to the planet s population that nonrenewable resource constraints of growth are upon us. If all goes well it should be clear by mid-century: Resource and environmental problems that threaten global economic sustenance, social progress, and peace cannot be solved without comprehensive and strictly pursued national policies in the framework of a much closer multilateral cooperation than existed at the beginning of the century. Hopefully, future generations, which will consider this integral understanding true beyond cavil, will appreciate the difficulty involved in arriving at it. At present, the process of collective self-enlightenment, recognition pressing toward consciousness, is in its early phase. Day is not about to break any time soon in the global cerebellum. The severity of the oil problem is disguised as a riddle. Let s call it the devil s seesaw. This is how it would read if it were a school test: The price of oil goes up, the economy slows down, and the price of oil declines. After a certain period the economy recovers, things appear to go back to normal but then the price of oil goes up again, setting back economic growth. Develop and implement a program that will extricate you from this miserable impasse. http://energybulletin.net/print/46223 (1 of 7) [11/4/2009 3:16:39 PM]
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Oil and economy on the devil s seesaw The world is off to a frenzied start but it is running in circles. The parts mutually accuse one another for the helplessness of the whole. Developed countries blame OPEC for the quintupling of prices during the last five years. The 12-member Vienna-based organization is allegedly not supplying enough of the world economy s vital juice. OPEC protests its innocence by faulting speculation and the weak U.S. dollar. The so-called speculators (investors not directly related to any segment of the oil supply chain) justify their decisions to pour huge amounts of capital into oil and other commodities by pointing to the turmoil in world finances, triggered by U.S. subprime woes. But many analysts claim that the rise in the price of gasoline, which began in 2004, led to the
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

Oil_Economy - Oil and economy on the devils seesaw...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online