March 29, 2012

Prepare for an Era of Oil Shocks

Martin Wolf, Globe & Mail


Google Images

This may be good politics. But it is absurd. Oil, unlike natural gas, is a globally traded commodity, whose price is set in world markets. In 2010, the U.S. produced 7.8 million barrels a day, 9 per cent of the world’s supply. Unlike Saudi Arabia, the U.S. lacks spare capacity: it is a price taker. Responding to his critics, Mr. Obama said: “We are drilling more. We are producing more. But the fact is, producing more oil at home isn’t enough to bring gas prices down overnight.” These remarks are correct, except for the last word. Producing more oil would have next to no effect on Read Full Article ››


TAGGED: Oil Shock, Oil Crisis, World Oil Supply, President Obama, Oil Supplies

RECOMMENDED ARTICLES

October 16, 2013
A False Euphoria Over Fossil Fuels
Michael Klare, Huff Post
For years, energy analysts had been anticipating an imminent decline in global oil supplies. Suddenly, they’re singing a new song: Fossil fuels growing scarce? Don’t even think about it! The news couldn’t be better:... more ››