How could crude oil be a drain on the economy when crude oil IS the economy?

Crude oil is the very foundation of our economy is it not.

One Response to “How could crude oil be a drain on the economy when crude oil IS the economy?”

  1. simplicitus Says:

    Exactly right. Our economy is entirely based on cheap energy in general and, for transportation in particular, on cheap oil – even in ways people don't really think about, like the choice to move from rail to trucks.

    Take a look at table 1.3, titled "Primary Energy Consumption by Source, 1949-2007" on:
    http://www.eia.doe.gov/emeu/aer/overview.html

    Note how much faster oil consumption has grown than coal consumption, and since 1970, faster than natural gas consumption.

    Now that oil is no longer cheap, our reliance on oil is hurting badly.
    http://www.wtrg.com/prices.htm

    We had a warning of what it would be like in the late 70s and early 80s, but, obviously, the lesson didn't stick.