We saw this morning a good thought-provoking video about the importance of oil prices to our economy, and the ineluctability of drastic changes as the price of a barrel goes over 100 dollars for good.
The orator is Jeff Rubin, former chief economist at ICBC. His wikipedia bio is here.
The first part explaining why the rising oil prices have triggered the recession is not the best, but keep listening to the part where he first predicts a sustained (and rapid) increase in oil price to triple digits, and then explains the impact on our economic model.
The issue of peak oil has been shadowed in the past two years by the recession, and by global warming. It is a healthy reminder that for a while we are dependant on oil as a source of energy, and if indeed the demand-supply equation drives prices up, we have fundamental adjustments to make to our societies.
A couple examples of these adjustments mentionned in the video :
– the US government should have invested money into public transportation instead of bailing out GM.
– industries will have to be localized again, as transportation costs will no longer be incidentals.
Here is the link – enjoy !
Video of Jeff Rubin on the triple digit oil prices and the impact on economy