Scarcity and Growth Considering Oil and Energy

Examining theories for why and how an oil price shock and energy crisis can hit, this text looks at oil exploration economics, why OPEC works the way it does, and what happened to the former Soviet Union. It explains why price and costs do not always indicate where scarcity is.

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This volume examines theories for why and how an oil price shock and energy crisis can hit. It looks at the economics of oil exploration and explains why OPEC works the way it does, and what happened to the former Soviet Union. The author combines basic economic principles of scarcity and cost with physics, showing point by point the theory that explains why price and costs do not indicate where scarcity is. Other innovations explain contradictions in many commonly used resource economic models.