Trouble Brewing

Courtesy of the Oil Drum is this interesting graph:

So, what is causing high oil prices? Easy - there's not enough (black) stuff being produced. End of story.

1 comment:

Dave Lankshear said...

Depends what you mean by 'stuff'. I take it you meant 'there's not enough OIL being produced' then this graph absolutely backs that up... that generally speaking, as GDP climbs transport of those goods and services climbs and so more oil is used.

If you meant 'stuff' in the sense of 'stuff' or goods, then... surely this graph is illustrating the opposite? Without any reference to oil prices — if I just dropped in from Pluto and did not know about peak oil or high oil prices, I might think that this graph illustrated a growth in the efficiency of the world economy?

That is... a certain amount of oil is used but GDP is going up without using the same increase in volumes of oil?