The oil price - a severe mercy

The oil price rise has changed the way the world is thinking. That is a mercy. It is going to lead to global recession. That is going to be very severe, especially for the poorest people.

We had all heard about climate change, but were doing little about it. We didn’t seem to have the imagination to respond adequately.

Now we are getting hit where it hurts, through the oil price and the whole conversation has changed.
Even business people are asking about peak oil.
The problem is that the oil price is rising very fast, exactly as the peak oilers always predicted and this is likely to produce a massive global recession.
Several serious commentators have shown how, over the last half century, industrial growth has been acutely dependent on the price of oil and the efficiency of its use (see The Last Oil Shock)
Now we will test that thesis big time.

Commentators are not quite aware yet of how serious it is.
Even the BERR (former Dept of Trade and Industry) had no scenario - even two months ago - that would put oil prices as high as they are today.

The good news is that this painful recession will help to break our addiction to oil and have a very positive effect on reducing climate change - if we respond well to it.
Of course governments will fall in the process, but perhaps that is less important.

For breaking news and in depth comment on the oil price go to http://www.theoildrum.com

Your comments.

At least we are being forced to look at other options and to discover new technology that will hopefully be less harmful.

It’s a pity, the innocent always suffers first.