Oil boom

This article is about economic booms in the oil sector. For the oil spill management device, see Boom (containment).

An oil boom is a boom in the oil producing sector of an economy. Generally, this short period initially brings economical benefits, in term of increased GDP growth, but might later lead to a resource curse.

Consequences

According to the Dutch disease 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.^[1] For example, after the oil boom in Gabon, the country showed symptoms of the Dutch disease,^[2] while oil-producing Equatorial Guinea did not.^[1]

History

Some important oil booms around the world include:

• Mexican oil boom (Mexico, 1977-1981)
• Pennsylvanian oil rush (United States, 1859)
• Texas Oil Boom (United States, early 1900s-1940s)
• Calgary oil boom (Canada, 1947)

References

1. ^ ^{a b} Toto Same, Achille (2008). Mineral-rich countries and Dutch disease: Understanding the macroeconomic implications of windfalls and the development prospects the case of Equatorial Guinea. World Bank Publications. p. 31. http://books.google.com/books?id=m7k_jClAAh8C&printsec=frontcover&dq=%22oil+boom%22&lr=&as_brr=1&ei=OibKS4jVMKruzQTUxNDXBw&cd=12#v=onepage&q=%22oil%20boom%22&f=false. 
2. ^ Zafar, Ali (2004). What happens when a country does not adjust to terms of trade shocks?: the case of oil-rich Gabon. World Bank Publications. p. 9. ISBN 1007164956, 9781007164957. http://books.google.com/books?id=zo3Y6CM7EZEC&pg=PA9&dq=%22oil+boom%22&lr=&as_brr=1&ei=FijKS4qaCZb0ygTqiNjfBw&cd=1#v=onepage&q=%22oil%20boom%22&f=false.