Re: Cheap oil forever!

From: Frank Altschuler (faltschuler_at_sbcglobal.net)
Date: 06/13/04 

Date: Sun, 13 Jun 2004 03:50:28 GMT

<royls@telus.net> wrote in message news:40cb8157.27932311@news.telus.net...
> On Sat, 12 Jun 2004 04:50:05 GMT, Grinch <oldnasty@mindspring.com>
> wrote:
> >
> >Although admittedly the geocentric solar system agreed much better
> >with empirical observations of reality.
>
> What has happened to the real price of oil over the last 35 years,
> Grinch? How about over the last 20 years?
>

>From a quick glance at a chart that the folks at inflationdata.com have on
their site*, it seems that from 70 to 81 there was a BIG run up in the cost
of oil from $14 to nearly $60. Through the balance of the 80s, the price
dropped precipitiously though not back to $14. By '88 it was however down
to $18 and change. The recent numbers are pretty well all over the map with
a low of $11.50 in 1998 and of course the current unremarkable run up.

> >Meanwhile, we're all still waiting for our first observation of a
> >mineral resource rising in price perpetually (much less running out)
> >due to scarcity as a result of humanity's consumption of it.
>
> Do you or do you not understand that the real price of oil fell until
> about 1970, and has been rising since then? Don't you think 35 years
> is enough to establish a trend?
>
> >But as long as one ignores the total lack of all empirical evidence
> >needed to confirm it, the theory looks great!
>
> The real oil prices over the last 35 years are a total lack of empirical
evidence?
>

Looking at the actual inflation adjusted price of a barrel of oil I'd have
to say "Yes".

Now in all fairness, you did say "real price" so to come up with a "real
price" we'd have to factor in the costs of listening to ecoweenies whine
about how cheap gas has been and how much better things would be if it was
hideously expensive. That's a high cost indeed.

*
http://inflationdata.com/inflation/Inflation_Rate/Historical_Oil_Prices_Chart.asp

Relevant Pages

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