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Posts tagged “Norway”

By Andrew Holland on May 22, 2012 with 9 responses

Are Countries With Vast Oil Resources Blessed or Cursed?

A Complex Issue

A couple of months ago, Robert Rapier, Sam Avro, and I had an interesting debate about the resource curse in the context of a Tom Friedman column about how countries that aren’t blessed with natural resources succeed because they are forced to invest in their people. I believe, as my post (Oil – Easy to Produce, but Not Easy to Buy) said, that countries blessed with natural resources like oil “don’t have to learn how to build factories” because they can sell oil to the world instead. Robert and Sam cited countries like Norway, the U.S., and the U.K. as examples of countries that have thrived even with resources.

The new edition of The New York Review of Books features an article, “What Makes Countries Rich or Poor?” written by Jared Diamond that is a review of Why Nations Fail: The Origins of Power, Prosperity, and Poverty by Daron Acemoglu and James A. Robinson. This is another book to add to my ever-growing list of ‘must-reads’ – but Diamond’s review gave some interesting points that are very relevant to our previous discussion about the resources curse and what causes countries to grow or fail. The truth, as shown by the article, is complicated: there are many determinants to growth, and  it is difficult to separate out individual causes.
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By Andrew Holland on Mar 30, 2012 with 6 responses

A Word on the U.S. as a Petro-State

Steve LeVine has been running a series of articles over at his blog on Foreign Policy, The Oil and the Glory about whether becoming a petro-state would change America’s character. While Steve is skeptical that the U.S. can in the future account for most of its energy requirements, I do actually believe that we’re going in that direction (see: Is the U.S. on track to join OPEC and Why U.S. Energy Policy is Poised for a Fundamental Shift).

The numbers are pretty convincing to me: we’re using less energy, especially oil, and we’re producing much more. Eventually, those curves are bound to cross, not today, or even this year, but maybe this decade.

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