Today’s Energy Crisis Spells Disaster For The Global Economy ...Middle East

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Today’s Energy Crisis Spells Disaster For The Global Economy
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It is my view that when energy supply falls, it falls not because reserves “run out.” It falls because economies around the world cannot afford to purchase goods and services made with energy products and using energy products in their operation. It is really a price problem. Prices cannot be simultaneously high enough for oil producers (such as Russia and Saudi Arabia) to ramp up production and remain low enough for consumers around the world to buy the goods and services that they are accustomed to buying. Figure 1. Chart showing…

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