Tuesday 17 June 2008

Oil in pictures - Production vs price

What does this image from Deffeyes tell you:



As we produce more oil, the price goes up, not down. The horizonal levels are percentages of GDP at that level of production (i.e. certain year).

The share of oil of total world GDP is going up rapidly. It's price rise multiplied by increase in number of barrels.

Something's gotta give.