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 economic benefits, in terms 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. For example, after the oil boom in Gabon, the country showed symptoms of the Dutch disease, while oil-producing Equatorial Guinea did not.

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)
• North Dakota oil boom (United States, 2008-continuing)