Skyrocketing oil prices could bring jobs home

Canadians could be paying $2 for a litre of gasoline after oil rises as high as US$200 a barrel during the next economic cycle, says a Canadian author.

Former CIBC chief economist Jeff Rubin argues in his book, “Why Your World Is About To Get A Whole Lot Smaller: Oil and the End of Globalization,” that while oil has been cheaper during the current recession, it’s not going to be that way for long.

Because global demand remains strong and oil reserves are continually being depleted, he said prices will go up.

This will then drive up shipping costs, forcing many countries to rely on their local economy to support manufacturing and other key industries.

So it will no longer make “economic sense” to produce goods in one part of the world and sell them in another “no matter how much the wage difference is,” he told CTV’s Canada AM Tuesday.

CTV