The Price of Oil and Economic Growth
Given almost any realistic analysis it is difficult to continue to hold âgrowth as usualâ scenarios as oil is certain to continue to display extreme price spikes over the coming years. Peak oil is all but dismissed by the IEA, OECD and UN as well as the New Zealand Government. However this claim stands in stark contrast to rapidly depleting fields in the UK, US and Norway (the 3 largest OECD oil producers) where almost a million barrels per day of production was lost between June 2003-June 2004.
If no action is taken to transition to a non-oil energy economy by 2007 we are likely to see many aspects of our economy in the process of extreme break down, double-digit interest rates, hyper-inflation, wholesale collapse of the property market, a high rate of business failure, high unemployment, economic, political and social instability â a forthcoming recession from which there will be no escape.