02 May '12, 12pm
Drumbeat: May 2, 2012
When the first OPEC oil shock hit in the 1970s, President Nixon responded by lowering the national speed limit to 55 miles per hour in a bid to conserve energy. But speed limits aren’t the only thing that can change when oil prices go up. Right now, we’re seeing that rising crude prices can influence much more than just how fast you can drive your car. High oil prices change the speed at which your economy can grow. Just as people require food, economies require energy. The relationship is straightforward: economic growth is a function of energy consumption. With national economies around the world once again forced to pay more than $100 (U.S.) for every barrel of oil consumed, a critical question must be asked -- what happens when the world’s most important source of energy becomes unaffordable?