Greenspan Not Worried About Energy Prices [View All]

[Rose Siding]

WASHINGTON - This year's surge in energy prices is likely to have far less of an impact on the economy than the oil shocks of the 1970s, Federal Reserve (news - web sites) Chairman Alan Greenspan (news - web sites) said Friday.

Greenspan predicted that the global economy will adjust to the recent surge in prices, which has seen oil topping $50 per barrel, by boosting energy exploration and production and by increasing fuel efficiency. But he conceded that the transition period could feature unexpected bumps.

"We and the rest of the world doubtless will have to live with the uncertainties of the oil markets for some time to come," Greenspan said in remarks to the National Italian American Foundation in Washington.
.....
However, Greenspan warned, "Obviously, the risk of more serious negative consequences would intensify if oil prices were to move materially higher."

However, he said he believed that existing technology and improvements spurred by the increase in prices should be sufficient to "ensure the needed supplies (of energy) for a very long while."

http://story.news.yahoo.com/news?tmpl=story&ncid=716&e=5&u=/ap/20041015/ap_on_bi_ge/greenspan_oil