March 30, 2012

Natural Gas Will Reconfigure Global Politics

Fareed Zakaria, Washington Post

AP Photo

No one could have predicted that oil prices would rise to today’s levels. Saudi Arabia’s oil minister, Ali al-Naimi, says that they are irrationally high, pointing out that world demand is lower than the available supply and that Saudi oil inventories around the world are largely untapped. The “irrational” cause, of course, is fear of a war with Iran. But it would also have been unpredictable that a 47 percent hike in oil prices since November 2010 would not cause a major slowdown in the U.S. economy. One reason it hasn’t might well be the rise of shale gas.

Read Full Article ››

TAGGED: oil, global economy

RECOMMENDED ARTICLES

March 24, 2012
A World With Only Tough Oil
Michael Klare, Le Monde Diplomatique
The consequences of tough oil will reshape the global economy and geopolitics. more ››
March 19, 2012
Why Nations Fail
Daron Acemoglu & James Robinson, Montreal Review
If you start in the city center of Nogales Santa Cruz and walk south for a while, at some point you see houses become much more run down, streets turn decrepit. You have crossed the Mexican border into Nogales, Sonora. Though the... more ››
March 21, 2012
How the German Economy Became Envied
Thomas Schulz, Der Spiegel
The entryway to the neoclassical mansion on New York's Upper East Side betrays not a single indication of its inhabitant's name. A security gate is waiting behind the heavy metal door. Inside, one can see dark wood, marble and... more ››
March 17, 2012
A Reckoning Delayed Is a Reckoning Denied
Financial Times
It is not only the economic recovery from the crisis that has been shaky. Countries are also still fumbling for the right psychological and political response to the worst economic shock in generations. more ››
March 27, 2012
Can Globalization Survive?
Int'l Institute for Strategic Studies
Since its collapse in the autumn of 2008, the world economy has gone through three phases: a year or more of rapid decline; a bounce back in 2009-2010, which nevertheless did not amount to a full recovery; and a second, though so... more ››