An oil boom is a period of large inflow of income as a result of high global oil prices or large
oil production in an economy. Generally, this short period initially brings economic benefits, in terms of increased
GDP growth, but might later lead to a
resource curse.
History
Some important oil booms around the world include:
*
Mexican oil boom
The Mexican Oil Boom was an oil boom from 1977 to 1981 which eventually led to a disastrous crash that lasted for most of the 1980s, driving the economy to a payment default and a significant deficit correction as oil prices fell.
Pre-Boom peri ...
(
Mexico
Mexico (Spanish language, Spanish: México), officially the United Mexican States, is a List of sovereign states, country in the southern portion of North America. It is borders of Mexico, bordered to the north by the United States; to the so ...
, 1977–1981)
*
Pennsylvanian oil rush
The oil rush in America started in Titusville, Pennsylvania, in the Oil Creek Valley when Edwin L. Drake struck "rock oil" there in 1859. Titusville and other towns on the shores of Oil Creek expanded rapidly as oil wells and refineries shot u ...
(
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...
, 1859)
*
Texas oil boom (United States, early 1900s–1940s)
*
Calgary oil boom (
Canada
Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by to ...
, 1947)
*
North Dakota oil boom (United States, 2008–2015)
Consequences
According to the
Dutch disease
In economics, the Dutch disease is the apparent causal relationship between the increase in the economic development of a specific sector (for example natural resources) and a decline in other sectors (like the manufacturing sector or agricult ...
theory, the sudden discovery of oil may cause a decline in the manufacturing sector. The consequences will vary from country to country, depending on the country's economic structure and stage of development.
[
] For example, after the oil boom in
Gabon
Gabon (; ; snq, Ngabu), officially the Gabonese Republic (french: République gabonaise), is a country on the west coast of Central Africa. Located on the equator, it is bordered by Equatorial Guinea to the northwest, Cameroon to the nort ...
, the country showed symptoms of the Dutch disease,
[
] while oil-producing
Equatorial Guinea
Equatorial Guinea ( es, Guinea Ecuatorial; french: Guinée équatoriale; pt, Guiné Equatorial), officially the Republic of Equatorial Guinea ( es, link=no, República de Guinea Ecuatorial, french: link=no, République de Guinée équatoria ...
didn't.
See also
*
Energy crisis
*
1970s energy crisis
**
1973 energy crisis
**
1979 energy crisis
The 1979 oil crisis, also known as the 1979 Oil Shock or Second Oil Crisis, was an energy crisis caused by a drop in oil production in the wake of the Iranian Revolution. Although the global oil supply only decreased by approximately four pe ...
**
1980s oil glut
The 1980s oil glut was a serious surplus of crude oil caused by falling demand following the 1970s energy crisis. The world price of oil had peaked in 1980 at over US$35 per barrel (equivalent to $ per barrel in dollars, when adjusted for inf ...
References
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