Energizing Growth: Why have the economists got it so wrong for so long?

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Energy security is back in the news. The US 5th fleet based in Bahrein protects the flow of half of the world’s oil exports through the Straits of Hormuz, yet nine-tenths of that output goes to Europe and Asia. Russia, already the world’s largest producer, wants to drill in the Arctic with no interference from Greenpeace. China wants to enforce exclusive rights to drill in the South China Sea. The Obama administration is under heavy pressure to allow a controversial pipeline to move oil from Canadian tar sands to refineries on the US Gulf Coast. Underlying all this activity is a simple fact: every barrel of oil that once cost $1 to find and produce in Texas or Saudi Arabia has to be replaced by another one that will cost more than $100 to find and produce. And the economy of every industrial country now depends on oil.

– – – > For the full text, please click here – http://exernomics.wordpress.com/2014/09/22/energizing-growth/

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