Impact of high oil prices on the economy potx

Impact of high oil prices on the economy... Fukushima adds to the economic impact of higher oil prices in Japan The shutdown of most nuclear plants has created electricity shortages & p

Impact of high oil prices on the economy

Annual expenditure on net imports of oil

1.9%

1.5%

3.7%

2.7%

2.5%

3.1%

3.0%

5.6%

0 100 200 300 400 500 600

European Union

United States

1990-2010 (average) 2011 2012

2.7%

2.7%

3.2%

3.2%

5.9%

% Share of GDP

The cost of oil imports is set to hit record levels in 2012, with OECD spending reaching 2.3% of GDP & each additional $10 increase in the oil price raising this by 0.2 percentage points

0 100 200 300 400 500 600 700

Gas Oil

2.1%

2.7%

3.3%

Europe: rising energy prices compound the

pain of austerity

EU spending on imports was almost two-thirds higher in 2011 than 2009 as a result of

higher international oil prices & oil-indexed gas prices

Cost of net imports of oil and gas in the European Union

EU’s net import bills

% Share of GDP

Debt of Greek government (end of 2011)

Fukushima adds to the economic

impact of higher oil prices in Japan

The shutdown of most nuclear plants has created electricity shortages & pushed up spending on oil & gas imports, which in turn has led to Japan’s 1 st trade deficit in decades

Cost of net imports of oil and gas in Japan

% Share of GDP

Japan’s net import bills

0 50 100 150 200 250

Gas Oil

2.4%

2.9%

3.9%

As China continues to grow, the impact of

high energy prices is keenly felt

China’s spending on oil & gas imports more than doubled between 2009 and 2011 as a

result of higher energy prices & increased import volumes

0 50 100 150 200 250

Gas Oil

% Share of GDP

China’s net import bills

Cost of net imports of oil and gas in China

1.9%

2.4%

2.9%