“Oil consumption by importers starts to decline if price is high–something that happens long before world oil supply actually starts to decline. James Hamilton has shown that 10 out of 11 US recessions since World War II were associated with oil price spikes... At the same time, oil exporters need high prices, and have financial problems if price or production declines too much. If exporters do not get enough revenue from oil exports, some of them collapse. ”
More in Gail's article: Oil Limits and Climate Change
