The Richest Woman in the World: How Gina Rinehart Earns her Billions
Why Dell Will Never Be Great AgainThe world has endured (survived?) two of them.
They led to transformations in energy use and economic activity twice in the modern era, in 1973-74 and 1979-1980.
They are oil shocks, and right now Daniel Yergin, chairman of Cambridge Energy Research Associates, argues in a Financial Times column that what is unfolding before us is the world's third oil shock. (Oil traded Thursday at $128.60 per barrel.)
Further, Yergin argues that those who say the world could take $80 per barrel oil in stride amid strong economic growth should not feel emboldened about the world's ability to continue to grow with an oil price that's $60 higher in the near future. The contraction ripples have started. In the airline sector. In the auto sector. Note the lighter traffic at your local mall. And did you notice that last food bill for the same shopping cart of items you bought?
Bad news, good news
Yergin's bad news? (And short-term, it is bad news.) Supply, short-term, will not be able to prevent the shock, in other words, lower prices to levels that would maintain (restore?) adequate global economic growth. Engineering skills and oil equipment are in short supply, drilling costs are rising, and equally damaging, selected governments are restricting access or postponing decisions that would bring more oil to the market in the shortest possible time.
Yergin's good news? Demand is already responding to record-high oil (and in the U.S., gasoline) prices, except in those countries where prices are controlled or subsidized. The oil shock is propelling changes (finally) in public policy, corporate/consumer behavior, along with technological development and implementation. Hybrid cars/vehicles, once fringe, are now in demand. The U.S. Congress increased automobile fuel efficiency requirements for the first time in 32 years. And billions of dollars have been added to speed the development of battery technology.
They led to transformations in energy use and economic activity twice in the modern era, in 1973-74 and 1979-1980.
They are oil shocks, and right now Daniel Yergin, chairman of Cambridge Energy Research Associates, argues in a Financial Times column that what is unfolding before us is the world's third oil shock. (Oil traded Thursday at $128.60 per barrel.)
Further, Yergin argues that those who say the world could take $80 per barrel oil in stride amid strong economic growth should not feel emboldened about the world's ability to continue to grow with an oil price that's $60 higher in the near future. The contraction ripples have started. In the airline sector. In the auto sector. Note the lighter traffic at your local mall. And did you notice that last food bill for the same shopping cart of items you bought?
Bad news, good news
Yergin's bad news? (And short-term, it is bad news.) Supply, short-term, will not be able to prevent the shock, in other words, lower prices to levels that would maintain (restore?) adequate global economic growth. Engineering skills and oil equipment are in short supply, drilling costs are rising, and equally damaging, selected governments are restricting access or postponing decisions that would bring more oil to the market in the shortest possible time.
Yergin's good news? Demand is already responding to record-high oil (and in the U.S., gasoline) prices, except in those countries where prices are controlled or subsidized. The oil shock is propelling changes (finally) in public policy, corporate/consumer behavior, along with technological development and implementation. Hybrid cars/vehicles, once fringe, are now in demand. The U.S. Congress increased automobile fuel efficiency requirements for the first time in 32 years. And billions of dollars have been added to speed the development of battery technology.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
