Theory
As world oil exports approach (or pass) a global peak, the price of exported oil increases and further stimulates domestic economic growth and oil consumption in Export-Land countries, creating a positive feedback process between declining exports and higher prices. Eventually, however, the level of export decline outpaces the increasing oil price, slowing domestic growth. In some cases, an Export Land eventually becomes a net importer. It is unlikely that an Export Land would constrain domestic consumption to help importing countries. In fact, many oil exporting countries subsidize domestic consumption below price levels defined by the world market.
Read more about this topic: Export Land Model
Famous quotes containing the word theory:
“No theory is good unless it permits, not rest, but the greatest work. No theory is good except on condition that one use it to go on beyond.”
—André Gide (1869–1951)
“The things that will destroy America are prosperity-at-any- price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.”
—Theodore Roosevelt (1858–1919)
“It is not enough for theory to describe and analyse, it must itself be an event in the universe it describes. In order to do this theory must partake of and become the acceleration of this logic. It must tear itself from all referents and take pride only in the future. Theory must operate on time at the cost of a deliberate distortion of present reality.”
—Jean Baudrillard (b. 1929)