The Fall of Oil Empires

Oil market commentators have been trying to figure out who is going to increase oil production to avert the calamitous economic effects of $100 per barrel oil. About every two weeks or so there is another declaration of soon-to-be increased production that is becoming reminiscent of the boy who cried “Wolf” once too often. Discussing who might increase production ignores the more immediate issue of whose production is slipping. Coupled with continuing oil consumption growth in China and the United States, declines in oil output make step-ups in production by other nations all the more necessary. Download here