In The News

Hurricane Raises Fears of Global Energy Crisis

Thomas Catan August 31, 2005
As flood waters continue to rise in New Orleans, Louisiana, the full scope of damage due to Hurricane Katrina has yet to be discerned. Nine oil refineries in the Gulf of Mexico – 12 percent of US refining capacity – are now closed. As a result, gas prices in the United States spiked immediately after the storm, but some observers worry that the impact will be more drastic. "It is now...

Prices Transform Oil into a Weapon

Ian Bremmer August 29, 2005
Alongside the fear that high oil prices will dampen global economic growth lies another serious threat: It is increasingly likely that certain oil-producing states may use the valued fuel as a political weapon – and effectively so, according to Ian Bremmer. Given the current state of global markets, any interruption of output will likely drive up prices. At the same time, petro-states are...

Bra Wars: Europe Strikes Back

Larry Elliott August 26, 2005
As of August 22, 2005, six categories of Chinese textile exports had met or exceeded EU quotas – spurring two days of talks in Beijing between the trade partners. The current limits were initially designed as stopgap measures, to allow EU producers to adjust to the January 2005 expiry of the the previous global quota regime. In the longer term, it is unlikely that Western producers will be...

The Breaking Point

Peter Maass August 22, 2005
As world oil prices continue to surge past $US60 per barrel, and as Chinese companies aggressively pursue acquisition of energy assets, anxiety is growing in many quarters about global energy security. Focusing his inquiry on the world's largest exporter, Saudi Arabia, Peter Maass uncovers some unsettling realities about the global oil supply. Maass reports on the difficulties in...

World Is Heading for Oil Price Shock

George Magnus August 16, 2005
Global oil prices have been gradually approaching record levels. While many analysts believe the implications of this increase are minor, there may actually be cause for concern. Increasing demands for energy, particularly from China and India, highlight a growing supply problem. The global supply of oil is not going to run out, per se, but producers will likely struggle to meet the increased...

How France Can Win From Offshoring

Tony Blanco August 15, 2005
The debate over benefits of outsourcing centers to companies and to a country’s economy versus its cost to displaced workers at home, has heated up in France. As France struggles to compete in the global economy, the authors suggest that it should strive to take full advantage of outsourcing. They recommend several tactics that could derive similar benefits from outsourcing, while minimizing...

Is Iraq War Fueling GCC's Economic Boom?

Emilie Rutledge August 12, 2005
Since the US-led invasion of Iraq in March, 2003, all six Gulf Cooperation Council (GCC) states have experienced high levels of economic growth, and the price of oil has doubled. Although the "Iraqi factor" can partly account for this upward trajectory in the price of oil, Emilie Rutledge writes that the unprecedented rise in global demand and lack of spare capacity are the more...