Thursday, February 28, 2008

Where Goes the Oil?

As oil hovers near $100 a barrel, here are some interesting figures to mull over from a BBC report.


4 comments:

  1. Someone on CNBC noted this morning that China would not be able to sustain its demand growth at $100+ oil. What is that in economic lingo--elasticity of demand?

    Even demand in the United States has been leveling off recently.

    Unfortunately, it's still been growing strong in those countries which export (and subsidize) oil.

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  2. The silver lining I see in $100+ oil is that it creates the incentives for (1) investing in alternative energy and, as a result, (2) substituting out of our oil addiction.

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  3. David,

    That graph looks like demand has been relatively stable in China. If that is the case, why all the talk about an emerging China and India being a/the catalyst for surging oil prices?

    Josefer

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  4. Jose,

    According to the chart, in 2000 China was consuming 5000 barrels per day. In 2006 it was consuming about 7000 barrels per day. That is a 40% increase in six years! Also, the figure does not show India or other Asian economies. I will try to find some data that speaks to this issue and post it later.

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