Why This Oil Boom Is Different
Three decades ago, OPEC nations didn't know what to do with their oil money. This time, they're spending it
The leap in oil prices in the 1970s was a shock to the global economic system. But the oil boom of the 2000s has done little obvious harm, for now. Global growth remains healthy. What's the difference?
Probably the biggest difference is what's being done with all the petrodollars. Three decades ago, most were removed from global consumption and put into savings. That depressed global demand. This time, more of the petrodollars are being spent, keeping worldwide economic growth buoyant.
( Full story here )
The leap in oil prices in the 1970s was a shock to the global economic system. But the oil boom of the 2000s has done little obvious harm, for now. Global growth remains healthy. What's the difference?
Probably the biggest difference is what's being done with all the petrodollars. Three decades ago, most were removed from global consumption and put into savings. That depressed global demand. This time, more of the petrodollars are being spent, keeping worldwide economic growth buoyant.
( Full story here )
posted by Oil Shock at 3/03/2006 06:44:00 PM
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