Wall Street Journal (March 29)
2011/ 03/ 30 by jd in Global News
Will the 30% spike in the price of oil hobble the U.S. recovery? This is unlikely. Prices have not hit new highs. They are actually down 30% from two years ago. Moreover, “the U.S. economy is today well-positioned to absorb an oil spike without experiencing it as an oil shock.” The U.S. is 9% below peak oil consumption which occurred in August 2005. In addition, the U.S. has gotten more efficient with the oil it uses. “We’re consuming the same amount of crude oil that we did 12 years ago and real output is more than 25% higher.”
Tags: Efficiency, Oil, Recovery, U.S.
