Oil Industry from a guy with a camera's photostream. James Hamilton argues that fundamentals, rather than speculation are ultimately behind the rise in oil costs:
The developed economies consume a disproportionate share of the world's energy, with North America and Europe accounting for about half of the total oil use in 2006.
However, it is the newly industrialized countries and oil producers that account for the recent rapid growth in demand, with Asia and the Middle East accounting for 60% of the increase in petroleum use between 2003 and 2006. North America and Europe contributed only 1/5 of the growth.
Despite China's disproportionate increase in the use of oil they still use less than a third of the barrels per person that Mexico does.
