Peak Oil

Global trade is integral to the process of globalization. Chief among the technological drivers of globalization are improvements in transportation. Hence, transportation is often referred to as an enabling factor without which globalization could not have occurred. But the recent years have brought a great deal of turmoil and instability to the global oil market. While oil prices impact global economy at large they impose a particular burden on global transportation. The big question is whether the world is at the outset of a new era in which oil output is nearing its peak and will no longer be sufficient to meet global demand. Global trade and - consequently - transportation is poised to be the prime casualty of the new era of expensive oil, raising questions about the economic viability of many players in the industry.