To quote Stein's Law, "If something cannot go on forever, it will stop." Of course, when it will stop is the big question.The really interesting thing in the graph is that until 1998, the long-term trend for real gas prices was down.
Saturday, July 05, 2008
A Graph of Gas Prices Since 1919
Remember those really, really high gas prices of the late 1970s and early 1980s? Well, we're past that and still climbing. From the U.S. Energy Information Administration:
To quote Stein's Law, "If something cannot go on forever, it will stop." Of course, when it will stop is the big question.
The really interesting thing in the graph is that until 1998, the long-term trend for real gas prices was down.
To quote Stein's Law, "If something cannot go on forever, it will stop." Of course, when it will stop is the big question.The really interesting thing in the graph is that until 1998, the long-term trend for real gas prices was down.
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"The really interesting thing in the graph is that until 1998, the long-term trend for real gas prices was down."
ReplyDeleteAnd it still is.
See the spike that occured in the late 70s/early 80s? This spike long term will look similar. Is it bigger? Yes ... But that's only because we are measuring in dollars. For the first time in many decades the dollar is worth far less today than it was only recently ... and since oil is sold in dollars, the price of it could go up a lot ... without it costing others around the world a penny more of their currency. Compared to the Euro (for example), the dollar is only worth about half of what it was when the Bush Adminstration came in. That means that oil prices could double (for us) and not cost a cent more in Euros ...
This spike in prices is a temporary blip.
Anyone who thinks this oil price run-up is an anomoly, has their head in the sand.
ReplyDeleteGet used to it; it isn't temporary.
OMG, I agree with Lance!
ReplyDeleteAnonymous said...
ReplyDelete"Anyone who thinks this oil price run-up is an anomoly, has their head in the sand."
The price run-up is due to a demand shock. The question is what happens when people gradually get the chance to adjust to the shock. The 1970s' price spike was due to a supply shock and once people adjusted, the price of oil continued its decline.