Venezuala's oil

This article expreses how Venezuela is the fifth largest exporter of oil in the world, and a main supplier of crude oil to the United States. Oil prices are spectulated to remain the same as they are now; however, a question remains about how oil price increases may hurt the world's economy. Venezuela's oil minister dismissed this subject, and this is why I ask you all if oil price increases will damage the world economy.


Tom said...

During a class it was mentioned that we as a country are less dependant on oil today then we have been in recent times. So, in answer to your question the rise of oil prices may hurt us in the short run but eventually we'll find a better way of energy in the long run.

Dr. Tufte said...

-1 on Dale's post for a spelling error.

Venezuela has been a larger supplier of the U.S. in the past, but they have been shooting themselves in the foot of late.

Tom is right though - a lot more GDP can be produced for a lot less oil than in the past, so we are getting less sensitive to oil problems, rather than more.