Tuesday, August 04, 2009

Oil running out and another recession

I blogged about this a while ago - and finally there's something in the media about it. We're in much more serious shit than we realise. This current crisis, though generally considered to be caused by banks and unsafe mortgages, is actually rooted in high oil prices, both attracting investment and therby reducing investment in other sectors, at the same time, higher oil prices reduces profit for almost everyone. The clever businesses hare already reducing their oil-dependence.


"Higher oil prices brought on by a rapid increase in demand and a stagnation, or even decline, in supply could blow any recovery off course, said Dr Fatih Birol, the chief economist at the respected International Energy Agency (IEA) in Paris, which is charged with the task of assessing future energy supplies by OECD countries."

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