$ 200 per barrel oil and its global impact

Miscellaneous and Personal Stuff I Must Share
1

Very good article from newsweek .

some points…

$200 oil in 2009 would be a painful shock, not just a green tax on gas guzzlers.

some analysts see a shift toward regional trade, and even a major reversal of globalization itself, as rising transport costs make it too expensive to ship many kinds of goods long distances.

By some estimates, the world could save 25 percent of its oil usage with simple measures like driving the speed limit, turning off lights, and fully using the green technology we already have (hybrids, better insulation, etc, etc). While it’s never been the inclination of rich nations—particularly America—to rein in consumption, it’s a notion we’ll undoubtedly become more comfortable with as energy prices rise.

scary scenario… :frowning:

2

At $200/barrel, old (capped off 0 oil wells will be rehabbed and pumping again. In the USA, cars with 1 liter 4 cyl engines will become poular. And, high transport costs will make Chinese goods expensive-manufacture of consumer goods might emerge in the USA. But, the massive transfer of wealth to oil exporting nations would likely set off enormous inflation-this could very well cause a global depression, akin to the 1930’s!

3

And we’ll still have dollar bills, and pennies. A sandwich will cost $20, and the convenience stores will still take nothing bigger than a twenty. Crazy times ahead to be sure.