In A High-Oil-Price Economy, Everything Will Get a Whole Lot Closer

Filed under: Commodities, Oil

It's been stated before, but it's worth repeating that two enduring trends of the high-oil-price era will be localization and increased density.

Essentially, in the decade ahead the U.S. economy (but not only the U.S.) will adjust by shrinking the distance between just about everything. Spatial geography will adjust to the reality of higher transportation costs per mile.

Most investors are aware of some of the more-obvious, likely changes. A 40-mile auto commute to work looks like an insignificant cost when unleaded regular gasoline costs $1.75 per gallon: it looks a whole lot different with gasoline above $3.50 per gallon (a price level that could be reached later this year).

Continue reading In A High-Oil-Price Economy, Everything Will Get a Whole Lot Closer

In A High-Oil-Price Economy, Everything Will Get a Whole Lot Closer originally appeared on BloggingStocks on Fri, 15 Jan 2010 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Full story at http://www.pheedcontent.com/click.phdo?i=6117e8fc2a117efb99e633b876f6145b