Energetic Economy

 Higher oil prices used to severely depress GDP. That’s no longer so. Household energy spending/GDP has been generally declining for decades and is now near its lowest percentage ever. Thus, the recent price rise will probably knock just a quarter-point off GDP. Moreover, because we’re now the world’s #2 oil producer, higher prices meaningfully boost exploration and production expenditures and thus increase GDP by at least one-eighth of a point

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