drz-400
DP Veteran
- Joined
- Oct 12, 2009
- Messages
- 2,357
- Reaction score
- 551
- Location
- North Dakota
- Gender
- Male
- Political Leaning
- Conservative
I have heard a lot about the fact that we need oil. That to me is obvious, but how much? Some people seem to think it is impossible at the moment to cut our current oil consumption without lowering our standards of living. I think this has been shown to be false over the past 30 - 40 years.
Figure Caption: Figure 9-10: U.S. Oil Consumption and Growth over Time
Until 1973, the real price of oil was relatively cheap and there was a more or less one-to-one relationship between economic growth and oil consumption. Conservation efforts increased sharply after the spike in the real price of oil in the mid-1970s. Yet the U.S. economy was still able to deliver growth despite cutting back on oil consumption.
Source: Energy Information Administration; Bureau of Economic Analysis.
Source- Krugman, Paul, and Robin Wells. Macroeconomics. 2nd ed. US: Worth Publishers, 2009. 249. Print
Keep this in mind next time you are in a traffic jam. Maybe low gas prices arn't all they are cooked up to be.
Figure Caption: Figure 9-10: U.S. Oil Consumption and Growth over Time
Until 1973, the real price of oil was relatively cheap and there was a more or less one-to-one relationship between economic growth and oil consumption. Conservation efforts increased sharply after the spike in the real price of oil in the mid-1970s. Yet the U.S. economy was still able to deliver growth despite cutting back on oil consumption.
Source: Energy Information Administration; Bureau of Economic Analysis.
Source- Krugman, Paul, and Robin Wells. Macroeconomics. 2nd ed. US: Worth Publishers, 2009. 249. Print
Keep this in mind next time you are in a traffic jam. Maybe low gas prices arn't all they are cooked up to be.