New Oil Shock is “Inevitable”

A new McKinsey report is out arguing that an oil shock is inevitable, and it could come sooner than expected. When? As early as 2010, under the firm’s “moderate” economic downturn scenario, and as late as 2013 if the downturn is more harsh.

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It’s not all unalloyed oil awfulness, however, with McKinsey pointing out that immediate attempts to redirect demand would pay dividends. To that way of thinking, policy should immediately begin pushing natural gas, as well as driver harder in efficiency programs.

More here.


Originally published at Infectious Greed and reproduced here with the author’s permission.

2 Responses to "New Oil Shock is “Inevitable”"

  1. hamad tarek   May 29, 2009 at 2:55 am

    Oil forecasts have been one of the most confusing areas in recent history with volatility out the roof being the only thing one can depend on.

  2. Marco,Manchester Business School   May 30, 2009 at 8:08 pm

    i cant see this model taking into consideration a probable decline in the US$.Couldn’t this factor provoke an earlier surge in oil prices?