Counterblast - Bloggsíða Willy Sutton
May 21, 2004
 
Are oil prices high?
Ok, the oil prices are rising and people are worried. Someone told me that some politicians in the US are talking about price caps. No bother verifying that, I believe him. But how high is the oil price, historically speaking of course, but people tend to forget that one needs to look back more than few weeks in order to do that:

"The same is true, by the way, for the cost of oil. Adjusted for wage growth, oil is slightly cheaper today than it was 20, 30, and 50 years ago, and five-times cheaper than 100 years ago. How can gas and oil be cheaper since we've used so much of it over time? Well, thanks to human innovation, we are always finding new sources of oil, while at the same time technology makes it cheaper to drill for it."




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