OIL

OIL The importance of oil to the global economy has declined dramatically in the last 30 years. About a third less oil was used to produce an average unit of GDP last year than in the early 1970s. The sharp drop in oil-dependency began after the price shock of 1973. Over the next decade, the global ratio of oil-demand to GDP fell by 20%. Oil-demand diminished less drastically in the late 1980s, but it has dropped steadily since the Gulf war. Despite oil's smaller role, there is still untapped demand. Asia's emerging economies consumed only 1.4 barrels a person last year; in Latin America, usage per person was 4.1 barrels. By contrast, America used nearly 25 barrels a head last year, and most other big economies topped ten barrels. As car-ownership in the developing world increases, so will demand for oil.