What Is the Connection Between Oil and GDP Growth?

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 |  Includes: DBO, OIL
by: Bill James

Oil is the lifeblood of the economy:

  • In the 1960s Oil Supply Growth exceeded GDP growth.
  • From 1970s to 2005, OSG trailed GDP by 2 points.
  • 2005, Peak Oil, end of Oil Supply Growth, except for momentum the end of GDP growth based on Oil Supply Growth.
  • From 2005 the trend has been horrific. Worse if measured in foreclosures and banking system collapse.

Oil Supply and GDP GrowthClick to enlarge

Action: Change the lifeblood of the economy from oil to ingenuity. Radically re-tool transportation and power generation infrastructure. Repeat the 1984 success of re-tooling communications infrastructure by shifting from central planning to free markets.

Author's Disclosure:
Author is founder of JPods, Inc. a company focused on re-tooling transportation.