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Thursday, September 22, 2005

 

The Oil Pinch

Are you preparing NOW for the ever evident oil depletion? As humanity comes to terms with the inevitability of a world beyond oil, the remaining oil supply will be exploited in three ways:
To maintain the global economy; To create a new solar economy which will not depend upon oil; To fight over the oil that remains. Oil will become more expensive and less available. This will be painful in the industrialized countries which have become totally dependent upon oil, and in the less developed countries where oil use is extremely sensitive to price escalation.
America's economy might not be able to stomach oil at $66 a barrel. Not easily, at least.
So far, the country has largely shrugged off oil's steady climb, even as the cost of crude has risen 54 percent this year. But with gasoline prices perilously close to $3 per gallon, some experts have concluded that the country's economic growth could slow, sapped by the cost of energy.
They acknowledge that high fuel prices are squeezing family and business finances. Still, they note, the economy is growing at a healthy clip, adding jobs, even though oil prices have been above historic norms for more than a year. As long as prices rise slowly, they say, the economy has time to adjust. So when does the economy finally hit the breaking point and fall back into a recession? With the fear of Hurricane Rita on the wakes I think the next recession might happen sooner than we all want to believe..

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