The Oil Drum: Trade, Transportation and the Chinese Finger Trap

One of the central underpinnings of neo-classical economics is trade. And one of the central tenets of trade is the the Ricardian theory of comparative advantage. Trade (in theory) benefits both parties because they are better off after the exchange. But our international trade system has, by baby steps, become completely dependent on crude oil. By air, water, land or rail, oil accounts for 99% of all transportation energy. As we move up the complexity chain in the products that make up our daily lives, are we moving further into a Chinese finger trap where there is no backing out?
Much more after the jump to The Oil Drum.