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The cost of energy is important to a country because it is one of many throttling point for how aggressively a country can grow. If it becomes unaffordable, and
by edge17 16y ago
The cost of energy is important to a country because it is one of many throttling point for how aggressively a country can grow. If it becomes unaffordable, and as a result difficult to grow, it can lead to a lot of things (like unemployment and civil unrest).
As far as questioning their competency, I don't even understand what you mean. They have engineers, information, and resources... i'm sure the competent enough to put things together and draw possible conclusions. The oil/commidity trade is very very tied to governments, military embargoes, etc.
For a small idea of how politically charged oil is, one example is the pipeline between Iran and Israel - http://en.wikipedia.org/wiki/Trans-Israel_pipeline http://en.wikipedia.org/wiki/Trans-Israel_pipeline
Oil and the price of it is incredibly important to governments.
- zeteo 16y agoThe army does not extract and market oil. Just because they depend on it doesn't mean they can predict worldwide reserves, rates of consumption, and economic effects of fluctuations in the oil supply. Heck, the oil companies themselves are hard pressed to do a small subset of all of these tasks.
- blantonl 16y agothis is analogous to saying that a food corporation has no ability to predict worldwide reserves, consumption, and the economic effects of the wheat that they consume. Or that an airline doesn't employ economists that closely monitor oil consumption and supply. Army's spend an incredible amount of time looking at the long term effects of the oil supply chain.