speeches · July 23, 2007
Speech
William Poole · President
Energy and the U.S. Macro Economy
WilmingtonClub
Wilmington,Delaware
July24,2007
Iam sure that over the past several years Whatisdifferentthistime?Thatismytopic
everyone in the audience has experienced thisevening.
“sticker shock” as the price of a gallon of Beforeproceeding,Iwanttoemphasizethat
gasoline at your weekly fill-up rose from theviewsIexpressherearemineanddonot
around $1.40 to $2 and now to around $3. More necessarilyreflectofficialpositionsoftheFederal
abstractly, you have read newspaper reports that ReserveSystem.Ithankmycolleaguesatthe
the price of a barrel of crude oil rose from about FederalReserveBankofSt.Louisfortheircom-
$25 per barrel to $50 and, most recently, to the ments.RobertH.Rasche,seniorvicepresident
neighborhood of $75. anddirectorofresearch,providedspecialassis-
Althougheconomistsareabitnervousabout tance.Iretainfullresponsibilityforerrors.
thissituation,theU.S.economyhasperformed
welldespitetheoilpriceincreases.Wearenerv-
ousbecausethoseofusofacertainageremember SOME ENERGY FACTS
wellhowdifferentthesituationwasinthe1970s.
Whilepetroleumpricedevelopmentsare
Asoilpricesrosein1973-74,theoverallrateof
mostprominentineveryone’smind,theyreflect
inflationreached11percentoverthefourquarters
onlypartoftheenergystory.About40percentof
of1974,asmeasuredbythepriceindexforper-
energyconsumptionintheU.S.economyis
sonalconsumptionexpenditures.ThePCEprice
derivedfrompetroleum-basedproducts.Coal
index,bytheway,issomewhatbroaderthanthe andcoalderivativesarethesourceofabout23
morefamiliarConsumerPriceIndex.Thereces- percentofU.S.energyconsumption;naturalgas
sionthatoccurredatthesametimetookthe about22percentandthenuclearandrenewable
unemploymentrateto9percentinMay1975. energysourcestheremaining15percent.These
Thenithappenedagain.Withlargeoilprice sourcesofenergyconsumptionhavebeenremark-
increasesin1978-79,thePCEpriceindexrose ablystableoverthepast20years,asshownin
by10percentoverthefourquartersof1979.There Figure1.Figure2showsthepricesofthreepri-
wasarecessionin1980andamoreseriousreces- maryenergysourcesasindexnumberswith
sionduring1981-82thattooktheunemployment 1982-84=1.0.Figure3showsthepricesoftwo
ratetoalmost11percentattheendof1982. consumerenergyproducts,electricityandgaso-
Oilpriceincreasesoverthepastseveralyears line,againasindexnumbersrelativetothesame
are,inpercentageterms,roughlycomparableto baseperiod.Thesefiguresaredrawnfromannual
the1970s’episodes,butoverallinflationhas averagedataandthereforedonotshowprice
remainedrelativelycontained.Unemployment volatilityoverthecourseofayear.
hasdrifteddownandiscurrentlyabout41/2per- Fromthesefigures,youcanseethatprice
cent.Thisunemploymentrateisatorperhaps trendsforthevariousenergysourceshavebeen
evenabitbelowestimatesofthefull-employment broadlysimilar,exceptforrecentyears.Thesta-
rateofunemployment. bilityofthefractionofenergyconsumptionfrom
1
ECONOMICFLUCTUATIONS
differentsourcesisnotsurprisinggiventhat,until dividedbythepersonalconsumptionpriceindex
recently,pricetrendsfortheseenergygoodswere forallitemsexceptfoodandenergy(theso-called
broadlysimilarwhichmeansthattherelative “corePCEpriceindex”)onabaseof1982-84=1.0.
pricesofenergysourceshaven’tchangedmuch. Therealpriceofnaturalgasreachedahighfor
Indeed,fromthemid-1980sthroughabout2002, thepast30yearsin2005withthehurricane-
therelativepricesoftheseenergysourceswere relatedproductiondisruptions.In2006,real
almostconstant.From1980to2000,primary naturalgaspricesdeclined,butremainedhigher
energypricesgenerallytrendedslightlydown- thananytimeinthe1973-2004period.Thereal
ward,whilethepricesofthetworetailenergy priceofcrudetrendeddownfrom1982through
productsshowninFigure3wereroughlyconstant. 1998,butincreasesbeginningin1999broughtthe
Itisonlyinthepastfewyearsthattherehas realpricetojust9percentabove1982-84levels
beenamajorchangeintherelativeprices.Crude androughly20percentbelowits1981peak.
oilpriceshaverisenmostrapidlyintherecent Incontrast,therealpriceofcoalfellsteadily
past,roughlydoublingsince2000.Naturalgas from1976to2003andhassincerisenonly
pricesandretailgasolinepriceshavegoneup slightly.In2006,therealpriceofcoalwasless
about70percentoverthesameperiod.However, thanhalfofits1982-84value.Therealretailprice
thepriceofcoalhasgoneuponly40percent,and ofgasolinehasincreasedcontinuouslysince
thepriceofelectricityonly30percent.Thelatter 2003,butin2006exceededtheaveragepriceof
reflectsthelargepercentageofcoal-firedgenera- 1982-84byonly12percent.Therelativepricein
tioncapacityandregulationofretailelectricity 2006isroughly10percentbelowitshistorical
pricesthatslowstheadjustmentofpricesatthe highreachedin1981.Therealpriceofelectricity
retailleveltoincreasesininputcosts. fellbyabout35percentfromtheearly1980suntil
Thepositivetrendincrudeoilandnatural 1999,leveledoff,andhasincreasedabout12per-
gaspricesstartedwellbeforethedisruptionsto centsince2003.Neverthelesselectricityremains
productionwiththe2005hurricanesintheGulf 23percentcheaperinrealtermsthanitwason
ofMexico,domesticrefineryoutagesandthe averageduring1982-84.
heightenedgeopoliticalriskintheMiddleEast. Aspainfulasrecentenergypriceincreases
Thesesupply-sideeventscausedpricespikesin havebeen,thishistoricalperspectivehelpsus
thelastcoupleofyears,butthepatternofprice tounderstandwhytheeconomyhasbeenableto
movementssinceY2Kreflectsstrongworld absorbthepriceincreaseswithlittleeffecton
demandforenergyaswellassupplyshocks.Given theaggregateeconomy.Perhapsthemostdirect
relativelylowshort-runelasticitiesofdemand waytounderstandtheimpactofenergyprices
forthevarioussourcesofenergy,thefractionsof onconsumersistoexaminethefractionofhouse-
totalenergyconsumptionhavenotyetresponded holdbudgetsdevotedtoenergy.
stronglytotherecentpriceincreases.Ifthese After1981,theshareofconsumerexpendi-
relativepricechangespersist,weshouldexpect turesonenergyoutofnominaldisposableper-
thefractionofenergyconsumptionfromcoalto sonalincometrendeddownward,fromahighof
riseandthefractionfrompetroleumandnatural over8percenttoabout4.1percentin1998(see
gastofall. Figure6).Disposablepersonalincome,bythe
Therecentincreasesinnominalenergyprices way,isessentiallyallhouseholdincomeinclud-
notwithstanding,energyintheUnitedStates ingtransferssuchasSocialSecuritybenefitsless
remainsquiteinexpensive.Thisfact,surprising directtaxes,whicharemostlyincometaxes.Real
asitmayseem,canbeseeninFigures4and5 disposablepersonalincomeisthenominalor
wheretherealpricesofvariousenergyproducts dollaramountadjustedforchangesinthegeneral
areshown.By“realprice”wemeanthepriceof pricelevel.
agoodintermsofothergoods.Figures4and5 Withtheincreaseinenergypricesdocumented
showthenominalpricesfromFigures2and3 inFigures2and3,theenergyshareofdisposable
2
EnergyandtheU.S.MacroEconomy
Figure 1: Sources of U.S. Energy Consumption
0.50
0.45
0.40
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
1
949
1
952
1
955
1
958
1
961
1
964
1
967
1
97 0
1
97 3
1
97 6
1
97 9
1
982
1
985
1
988
1
991
1
994
1
997 2000 2003 2006P
3
tnecreP
Figure 1
Sources of U.S. Energy Consumption
PetroleumProducts Coal NaturalGas NuclearandRenewable
SOURCE:U.S.DepartmentofEnergy.
Figure 2: Nominal Energy Prices
3
2.5
2
1.5
1
0.5
0
1
97 3
1
97 5
1
977
1
97 9
1
981
1
983
1
985
1
987
1
989
1
991
1
993
1
995
1
997
1
999 2001 2003 2005
0.1=4-2891
Figure 2
Nominal Energy Prices
CrudeOil Coal NaturalGas
SOURCE:U.S.DepartmentofEnergy.
ECONOMICFLUCTUATIONS
Figure 3: Nominal Energy Prices
2.5
2
1.5
1
0.5
0
1
97 3
1
97 5
1
977
1
97 9
1
981
1
983
1
985
1
987
1
989
1
991
1
993
1
995
1
997
1
999 2001 2003 2005
4
0.1=4-2891
Figure 3
Nominal Energy Prices
Electricity RetailGasoline
SOURCE:U.S.DepartmentofEnergy.
Figure 4: Real Energy Prices
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
1
97 3
1
97 5
1
977
1
97 9
1
981
1
983
1
985
1
987
1
989
1
991
1
993
1
995
1
997
1
999 2001 2003 2005
0.1=4-2891
Figure 4
Real Energy Prices
CrudeOil Coal NaturalGas
SOURCE:U.S.DepartmentofEnergy.
EnergyandtheU.S.MacroEconomy
Figure 5: Real Energy Prices
1.4
1.2
1
0.8
0.6
0.4
0.2
0
1
97 3
1
97 5
1
977
1
97 9
1
981
1
983
1
985
1
987
1
989
1
991
1
993
1
995
1
997
1
999 2001 2003 2005
5
0.1=48-2891
Figure 5
Real Energy Prices
Electricity RetailGasoline
SOURCE:U.S.DepartmentofEnergy.
Figure 6: Share of Energy Consumption in Nominal
Disposable Personal Income
9
8
7
6
5
4
3
2
1
0
9 5 9 9 61 9 6 3 9 6 5 9 67 9 6 9 971 97 3 97 5 97 7 97 9 9 81 9 8 3 9 8 5 9 87 9 8 9 9 91 9 9 3 9 9 5 9 97 9 9 9 0 01 0 0 3 0 0 5
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2
tnecreP
Figure 6
Share of Energy Consumption in Nominal Disposable Personal Income
EnergyExpenditureFraction
SOURCE:ComputedfromBureauofEconomicAnalysisdata.
ECONOMICFLUCTUATIONS
personalincomerosefrom4.1percentin1998to consumedto1.4percentcomparedtotheincrease
almost5.8percentin2006.Thisincreasesimply inrealdisposablepersonalincomeof10percent.
returnsthesharetoaboutits1985level.Itis Iwouldnotclaimthatanextra$150billion
importanttorecognize,however,thattheincrease increaseinconsumerspendingonenergyisa
inenergyprices,thoughoflimitedimpactinthe smallnumber.However,weneedtoputthatnum-
aggregate,hasforceddifficultchoicesonlower- berinperspective.Theextraspendingonenergy
incomehouseholdsforwhomtheburdenhas in2006was1.6percentofdisposablepersonal
beenmuchhigherasaproportionofincome. income.Bywayofcomparison,considersome
Therecentpriceincreasesarehavingthe otherspendingincreasesbetween2002and2006.
expectednegativeimpactonthequantityofenergy Asapercentageofdisposablepersonalincome,
consumed,relativetototalgoodsandservices consumerspendingonfurnitureandhousehold
consumed,butthetotalamountspentonenergy equipmentrosefrom4.1to4.2,spendingonrecre-
hasneverthelessincreased.Theincreaseinthe ationfrom3.8to4.0,spendingonfoodfrom12.8
energyshareofnominaldisposablepersonal to13.4andspendingonmedicalcarefrom15.4
incomereflectstheinelasticshort-rundemand to16.7.Indeed,between2002and2006,spending
forenergybyconsumers.Putanotherway,as onalcoholicbeveragesroseby$40billion,from
energypriceshavesurged,thequantityofenergy 1.5to1.6percentofdisposablepersonalincome.
consumedhasgrownmoreslowlythanrealdis- Fromthesenumbers,Iconcludethatthe
posablepersonalincomebutnotslowlyenough, impactofenergypriceincreasesonconsumers
giventhepriceincreases,topreventtheamount hasbeenfarlessthanheadlineswouldlead
spentonenergyfromrisingsignificantly. readersandTVviewerstobelieve.Isupposewe
Tounderstandtheimpactofenergyprice couldarguethatmedicalcareandenergyspend-
increasesonhouseholds,weneedtocompare ingincreasesaredrivingpeopletodrink,but,in
whatactuallyhappenedwithabaselinescenario. theprocess,U.S.consumershavebeenableto
We’llcompare2006with2002.Areasonable increasetheirspendingshareonfurnitureand
baselinescenarioassumesthattherelativeprice recreationaswell.Itmustbethatconsumersare
ofenergyisunchanged—thatis,thatthenominal notsohard-pressedafterall,exceptforthosein
priceofenergyrisesbythesamepercentageas thelowestincomegroups.Theimpacthasbeen
consumerpricesexcludingenergyactuallyrose. real,butthemagnitudesmallenoughthatprice
Second,let’sassumethatthequantityofenergy increaseshavenotdisruptedthenormalprocesses
consumedhadincreasedbythesamepercentage ofeconomicgrowth.
thatrealdisposablepersonalincomeactually
rose.Withtheseassumptions,thepercentageof
disposableincomespentonenergyin2006would
EFFECTS OF ENERGY PRICE
havematchedthepercentagein2002,whichwas
INCREASES ON THE ECONOMY
4.2percent.
Withtheseassumptions,in2006thebaseline I’veemphasizedthatenergypriceincreases
spendingonenergyinnominaldollarswould havenothadseriousadverseimpactsonthe
havebeen$400billion.Actualspendingon U.S.economy.Theeffectsonconsumersasa
energy,at$550billion,was$150billionhigher. wholehavenotbeenallthatlarge;theeconomy
Hadthequantityofenergyconsumedincreased hasgrownnicelysince2002,andthelabormar-
between2002and2006atthesameraterealdis- ketiscurrentlyveryclosetofullemployment.
posablepersonalincomeincreased,spending Buteconomistsdohaveconcerns,ingoodpart
onenergyin2006wouldhavebeenhigherby becauseoflingeringbadmemoriesofprevious
another$47billion.Thus,between2002and2006, periodsofsharplyrisingenergyprices.
consumers’responsestoenergypriceincreases Theenergyshocksof1973and1979-80were
helddowntheincreaseinthequantityofenergy principallysupply-sidedisturbancestoenergy
6
EnergyandtheU.S.MacroEconomy
markets:theOPECoilembargoandtheIranian andtoallocateavailablesupplyamongtheexist-
hostagecrisis,compoundedbythepresenceof ingandemergingsourcesofdemand.
pricecontrolsintheUnitedStates.Theimpact Facedwiththesehigherenergyprices,con-
ofthoseshocksiscertainlyburnedintomymem- sumersandbusinessesintheUnitedStateshave
ory,andlikelyintothememoryofeveryonewho reactedinthemannerpredictedbybasiceconomic
livedthroughexperiencesoflonglinesatgasoline analysis.AsIdiscussedabove,consumershave
stationsthatsometimesactuallyranoutoffuel; reducedtheirconsumptionofmoreexpensive
mandatoryreductionsinthermostatsettingsat energyrelativetototalconsumptionexpenditures.
businessandgovernmentoffices;andyear-round Yettheyhavebeenabletomaintainstrongover-
daylightsavingtime.Inaddition,bothofthese alldemandforconsumptiongoods.Realpersonal
shockswerefollowedbyrecession. consumptionexpendituresintheUnitedStates
Overthepastfouryears,wehaveseennone grewatanaverageannualrateof3.5percentfrom
ofthemacroeconomiccomplicationsoftheearly 2002through2006,andthisstronggrowthin
energypriceshocks.Animportantpartofthe consumerdemandhasmadeamajorcontribution
differencethistimeisthattherecenttrendin tothecontinuedgrowthofoureconomyfiveyears
intoaneconomicexpansion.
relativeenergypriceshasbeendrivenbyrapidly
ThebusinesssectoroftheU.S.economyhas
increasingworlddemandforenergy.Figure7
alsoreactedtohigherenergypricesovertime.
showsenergyconsumptioninfourmajoreco-
EnergyuseperdollarofrealGDPisshownin
nomicareas:theUnitedStates,Europe,Japan
Figure8.Energyuseshowsaconsistentnegative
andChinaplusIndia.1Thelatestdataavailable
trendreachingavaluein2006of8.75oronly48.6
arefor2004.Between2002and2004,primary
percentofthe1970valueof17.99.Thisdownward
worldenergyconsumptionincreased9percent.
trendistheresultofefficiencyimprovements
However,energyconsumptionintheUnited
andstructuralchangesintheeconomythathave
Statesgrewonly2.5percent,intheEU-154.2
shiftedproductiontowardlessenergyintensive
percentandinJapan2.9percent.Incontrast,dur-
industries.InFigure9itcanbeseenthatin2006
ingthisperiodprimaryenergyconsumptionin
consumptionofenergyintheindustrialsector—
ChinaandIndiaisestimatedtohavegrown33.0
thesectorconsumingthemostenergyinour
percent.Theincreaseinprimaryenergyconsump-
economy—isatroughlythesameabsolutelevel
tioninthelattertwocountriesisestimatedat51
asitwasintheearly1970s.Industrialfirmshave
percentofthetotalworldincreaseinenergycon-
maintainedthislevelofenergyconsumptioneven
sumption.Clearly,rapiddevelopmentofpopulous
thoughindustrialproductioninmanufacturing
emergingmarketeconomiesisthemajorsource
in2006isthreetimeslargerthanitwasin1970.
oflargeincreasesinworldenergydemand.This
Thetransportationsectoristhesecondlargest
shiftintheworlddemandforenergyistheunder-
consumerofenergyintheU.S.economy.Energy
lyingsourceofthepricetrendsthataredocu- usageinthissectorhastrendedupwardsteadily.
mentedinFigures2to5. Theincreaseisdrivenbythegrowingnumberof
However,energymarketswork!Therealprice vehiclemilesandthefailureofimprovementsin
increaseshaveprovokedaresponseinproduction theaveragefuelefficiencyofthefleetofdomestic
sufficienttoaccommodatethehigherdemand. motorvehiclestooffsetincreasesintotalvehicle
Worldproductionofprimaryenergyincreased miles.Figure10showsfuelefficiencyofvarious
9.1percentfrom2002through2004.Theprice typesofvehiclesintheUnitedStates.Fueleffi-
mechanisminworldenergymarketsisaliveand ciencyofourtruckfleethasbeenrelativelycon-
functioningwelltoincreasetotalproduction stantsincethelate1960s.Althoughsubstantial
1 EuropeisdefinedhereastheEU-15:Austria,Belgium,Denmark,Finland,France,Germany,Greece,Ireland,Italy,Luxembourg,Netherlands,
Portugal,Spain,Sweden,andtheUnitedKingdom.
7
ECONOMICFLUCTUATIONS
Figure 7: World Energy Consumption
140
120
100
80
60
40
20
0
1
980
1
982
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984
1
986
1
988
1
990
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992
1
994
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1
998 2000 2002 2004
8
UTBnoilliB
Figure 7
World Energy Consumption
UnitedStates EU-15 Japan ChinaandIndia
Figure 8: Energy Consumption per Dollar of Real
GDP
25
20
17.99in1970
15
10
8.75in2006
5
0
1
949
1
952
1
955
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958
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997 2000 2003 2006
ralloD)0002(deniahCreputBdnasuohT
Figure 8
Energy Consumption per Dollar of Real GDP
EnergyandtheU.S.MacroEconomy
Figure 9 : Energy Consumption by End-Use Sector
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
1
949
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952
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955
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958
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1
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1
997 2000 2003 2006
9
utBnoilliB
Figure 9
Energy Consumption by End-Use Sector
Industrial Transportation Residential Commercial
Figure 10: Motor Vehicle Fuel Rates
25
20
15
10
5
0
1
949
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1
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991
1
994
1
997 2000 2003
nollaGrepseliM
Figure 10
MotorVehicle Fuel Rates
PassengerCars Vans, PickupTrucks, andSUV's Trucks
ECONOMICFLUCTUATIONS
Figure 11: Crude Oil and Natural Gas Rotary Rigs
in Operation
4,500
4,000 Peak:3,970rigsin1981
3,500
3,000
2,500
2,000
1,500
1,000
500
0
1
949
1
952
1
955
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958
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961
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1
997 2000 2003 2006
increasesinthefuelefficiencyofpassengercars ofnewtechnologiesandtheeconomicincentives
havebeenrealizedsincethemid-1970s,thefuel toexploitpreviouslyuntappedanduneconomic
efficiencyofvans,pickuptrucksandSUVsbasi- resources.AnexampleistheFayettevilleshale
callyflattenedoutordeclinedabitafterthe formationinArkansas.Developmentofthis
early1990s.Overallfuelefficiencyhastendedto resourcerequireshorizontaldrillingtechniques
declineasconsumersincreasedtheshareoflight andfracturingoftheshaleformationstorelease
trucksandreducedtheshareofpassengercars. naturalgas.
Veryrecently,itappearsthathouseholdsare Asecondtypeofinvestmentcurrentlyunder-
adjustingtheirpreferencesfortypesofvehicles wayistheconstructionofelectricitygenerating
inlightoftheincreasedrealpriceofgasoline. facilitieswithloweremissions.Majorconstruc-
Thepercentageoflighttrucks,whichincludes tionactivitiesareunderwayinKentuckyand
vansandSUVs,intotallightvehiclesalespeaked Illinois.Theseprojectswillutilizelocalcoal
inlate2004at57.5percentandbymid-2007had resourcesthathavebeenunderutilizedinrecent
declinedto51percent. yearsbecauseoftheavailabilityofcheap,lower
Residentialconsumptionofenergyleveled sulfurwesterncoal.Majorinvestmentsincoal
offfromthemid-1970sthroughthemid-1980s generatingplantshavealsobeenannouncedfor
buthastrendedupforthepast20years.However, Texas.Inthelongerrun,“cleancoal”technology
relativetothestockofhousingintheUnited inwhichcoalisfirstconvertedtogasbefore
States,residentialenergyconsumptionhasbeen burningmaybeintroducedonalargescale.
essentiallyflatsincetheearly1980s. Finally,thereisatremendousamountof
Businessactivityisalsoreflectingtheupward investmentactivityintheareaofalternative,non-
trendinrelativeenergyprices.Domesticdrilling fossil,fuels.Theseincludenumerousinstalla-
foroilandnaturalgas,asmeasuredbyrigsin tionstoproduceethanolfromcornandfactories
operation(Figure11)hasincreasedinthepast toproducebiodieselfuels.Automanufacturers
severalyears,aftermanyyearsofaflatlevelof areinvestinginnewengine“flexfuel”technolo-
activity.Partoftheincreasereflectstheinteraction giesthatwillallowmotorvehiclestorunondif-
10
sgiRforebmuN
Figure 11
Crude Oil and Natural Gas Rotary Rigs in Operation
EnergyandtheU.S.MacroEconomy
ferentmixturesoffossilandnon-fossilfuels.It
remainstobeseenwhetherthesetechnologies
willproveeconomicallyviable.
CONCLUDING COMMENTS
Energyisanessentialgood,alongwithfood,
water,medicalcareandanumberofothergoods.
However,theimportanceofrecentenergydevelop-
mentsislessthantheirhighvisibilityleadsmany
tobelieve.Therearecertainlystrainsfromthe
highpriceofenergy;however,thereisnoenergy
crisis,andhouseholdsandfirmsareadjustingin
asensiblewaytopriceincreases.
Worldenergydemandsarelikelytocontinue
togrowrapidly,aseconomicgrowthinChinaand
Indiahasdevelopedsubstantialmomentum.We
shouldhopethatgrowthwilltakeholdinAfrica
andinMiddleEasterncountries.Ifitdoes,rapid
economicdevelopmentinthoseareaswilladd
furthertogrowthinworldenergydemand.
Whetherhighergrowthintheworldeconomy
willcontinuetopushenergypricesupwill
dependondevelopmentsinenergysupply.There
aremanypromisingtechnologiesthatintime
couldmakeimportantcontributionstoenergy
supplies.Moreover,technologycanbeofenor-
mousassistanceintemperinggrowthindemand.
Toharnessthistechnology,weneedtorelypri-
marilyonmarketforces.Marketadjustmentshave
beentheheroinpreventingenergypriceincreases
overthepastfouryearsfromdisruptingeconomic
growth,ashappenedinthe1970s.Inmyjudgment,
marketswillcontinuetohandleenergyproblems
well,andthefuturefortheU.S.economyisbright.
11
Cite this document
APA
William Poole (2007, July 23). Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/speech_20070724_poole
BibTeX
@misc{wtfs_speech_20070724_poole,
author = {William Poole},
title = {Speech},
year = {2007},
month = {Jul},
howpublished = {Speeches, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/speech_20070724_poole},
note = {Retrieved via When the Fed Speaks corpus}
}