Page added on March 30, 2005
Oil may yet deal a solid blow to U.S. economic growth.
While the increasingly energy-efficient U.S. economy can likely weather current high prices, it has grown vulnerable to an oil shock – a sudden, sharp rise in the price of oil caused by a large-scale supply disruption. With production capacity constrained and threats to supply plentiful, the Bush administration is taking the risk seriously.
In addition, the Energy Information Administration, the statistics and analysis arm of the U.S. Department of Energy, recently conducted two workshops to look into the probability of a supply disruption and its likely macroeconomic impact.
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