GOV 312L Lecture Notes - Lecture 24: Swing Producer, Demand Curve, Price Controls
Document Summary
Module 24: the international politics of oil: key energy resource. About 33% of total global energy consumption (natural gas at 24%, coal at 30%) About 37% of total energy consumption in us (natural gas at 30%, coal at 20%: significant portion of global trade (about 15%), 2/3 of oil traded, when oil prices up. Gas prices up (more expensive to drive to work, fly in a plane, conduct international trade, and move goods within domestic economy) Can induce global recession: stagflation of 1970s. Transfers wealth from key oil-importing countries (us, europe, Japan, china) to oil-exporting countries (saudi arabia, russia, venezuela) Global oil markets: single global market for oil. Spot and futures markets (trade contracts to deliver barrel of oil at specific date; don"t actuall(cid:455) ph(cid:455)sicall(cid:455) e(cid:454)change oil) Important fact in debates about energy independence: even as us imports less, price can still be shocked by developments in. Middle east, russia, and china: total global petroleum consumption at 90. 4 million barrels/day.
