Alan Greenspan

Greenspan testifies on oil dependence and economic risk

Now that Greenspan is retired he seems to be prepared to voice some hard truths. After watching the video of his testimony, I felt he was trying to give a strong warning about an increasingly unpleasant future. (Video and partial transcript)

June 7, 2006

Energy

We will begin the transition to the next major sources of energy, perhaps before midcentury, as production from conventional oil reservoirs, according to central-tendency scenarios of the U.S. Department of Energy, is projected to peak. … Nonetheless, the transition will take time. We, and the rest of the world, doubtless will have to live with the geopolitical and other uncertainties of the oil markets for some time to come.

October 17, 2005

Transcript of Greenspan’s Speech on Oil

Elevated long-term oil futures prices, if sustained at current levels or higher, would no doubt alter the extent of, and manner in which, the world consumes oil. Much of the capital infrastructure of the United States and elsewhere was built in anticipation of lower real oil prices than currently prevail or are anticipated for the future. Unless oil prices fall back, some of the more oil-intensive parts of our capital stock would lose part of their competitive edge and presumably be displaced…

October 16, 2004

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