Monday, August 23, 2010

Will China Force the World Off Oil?

Jesse's Cafe Americain has posted this article with Jesse's commentary:
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Council on Foreign Relations
China Will Force the World Off Oil
By Paul Swartz
August 23, 2010

"As a country’s per capita income increases, its per capita oil consumption increases. Consumption growth tends to be modest up until $15,000 income per head, but then accelerates rapidly. China is quickly approaching this point. South Korea, which consumes 3% of world oil output, is too small to disrupt oil markets.
"China is too big not to disrupt them. Were China’s per capita oil consumption to be brought up to South Korea’s, its share of global consumption would increase from today’s 10% to over 70%. In order to cap China’s share at 22%, which is the U.S. share today, global oil output would have to increase by a massive 13% per annum over ten years – well beyond the 1% growth averaged since 1975..."

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