After All, They Asked For It » « Journalism, Dinosaurs, and the Know Everything World 


Those Who Don’t Know History Are Doomed….
January 7th 2009 Energy

Instapundit » Blog Archive » THOSE LOW GAS PRICES WON’T LAST:

Or not:

It looks to me as if the two oil spikes of the past 40 years were the aberrations, and the recent collapse of the spike is merely returning us to the more normal regions of 15-25 dollar oil.

I wonder if there are any smart guys out there willing to repeat that famous bet about the future scarcity of natural resources, this time with oil.

Submit to Stumbled Upon!
-Bill Quick







Blogs that have linked to this post:

Comments on this post:

  • CalmRising
    January 8th, 2009 | #1

    How many dollars a barrel of oil is worth in the future also depends on how much a dollar is worth.

  • kennycan
    January 8th, 2009 | #2

    Notice how spikes and increased volatility correspond to periods where the gold based monetary system was abandoned. From the late 1890s to 1971 the real price of oil would swing tightly around that 20-25 range you cite. Since 1971 we’ve been off the gold standard and so the real price of oil has a monetary component as well as a supply/demand component.

    I don’t believe in peak oil, as I believe that technology will find a way to either (a) find and produce more oil or (b) find alternative energy sources that are economically competitive to oil or (c) reduce demand for energy (and hence oil) per output (like making more fuel efficient cars w/out sacrificing performance, etc). Probably a combination of all three.

    It’s not going to be resource constraints that drive prices higher. If anything, prices will have pressures to the downside. However, monetary discipline or lack thereof will have a major impact over the price of oil in the short term.

comment on this article

Note: Daily Pundit uses the Akismet spam filter, which has been known, on occasion, to start flagging regular commenters' submissions as spam for a while until we can smack it around enough to change its mind. If you're having problems like this, you can bypass Akismet by registering. Your comments are still very welcome whether you register or not. The only drawback of not registering is, if Akismet flags your comment as spam, it may take us a while before we see it and fix it.

Quicktags:

Tags allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <img src="" alt="" /> <li> <ol> <s> <strike> <strong> <sub> <sup> <ul>
Comment Preview (updated when idle):

 


return to main page (at this post)