Literary Economics

The Daily Reckoning

Oil is a special case. It is probably the single most important ingredient to a modern economy. The world’s largest nations, India and China, are becoming modern nations. They are growing at 8, 9…even 10% per year. Add in a few other countries in the fast-growing Asian region and you have three billion people whose appetite for petroleum products increased every day.

The world’s oil production is not keeping pace. In fact, many experts think oil production is peaking out. It may have taken the earth 100 million years to make the stuff, but it only took three generations to use up nearly half of it. From here on, oil is going to be hard to get…and, well, expensive.

Howe Street