Another positive outcome of high oil prices is that local labor becomes competitive once agian.
An example of this is Chinese steel. It was dominating the global market under conditions of sub-$100 dollar oil and a high valued US dollar.
For the first time in recent memory, the combination of a weak US dollar and the cost of transporting Chinese made steel has made it highly uncompetitive. US steel manufacturing is reversing the trend of imploding output and is increasing its output of locally made steel.
Jeff Rubin (CIBC) has an interesting article on this
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Another positive outcome of high oil prices is that local labor becomes competitive once agian.
Jun 18 08:57 am
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All Comments by longoil »Reasons to Love 3-Digit Oil [View article]
An example of this is Chinese steel. It was dominating the global market under conditions of sub-$100 dollar oil and a high valued US dollar.
For the first time in recent memory, the combination of a weak US dollar and the cost of transporting Chinese made steel has made it highly uncompetitive. US steel manufacturing is reversing the trend of imploding output and is increasing its output of locally made steel.
Jeff Rubin (CIBC) has an interesting article on this