Summary
WITH oil prices hitting a record dollars 75 a barrel, the finance ministers of the G7 countries - America, Japan, Germany, Britain, France, Canada and Italy - have issued a timely warning that high energy prices could destabilise the global economy. This is a warning we should all heed.
Skyrocketing petroleum bills and world growth are but two sides of the same coin. For the past three years, the world has been enjoying its biggest economic boom since the early 1970s. As a result, the demand for oil has increased much faster than oil production, or the discovery of new fuel reserves. And while two decades ago, Asia consumed only 10 per cent of the world's oil, economic expansion in China and India means that Asia now absorbs one-third of global oil production.See the full content of this document
Extract
Leader:An Unquenchable Thirst for Oil
World oil consumption is growing at about 2.2 per cent a year, which is faster than the growth in output. As the G7 ministers point out, something is going to have to give. Either economic growth stalls, as oil shortages ap...
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