Gasoline Prices

[Steve Blayney]

FYI - A barrel of oil was approx. $10 a decade ago!

[Michael Larson]

Originally Posted by sblayney

FYI - A barrel of oil was approx. $10 a decade ago!

[Brian A. MacNeish]

someone sent me this today. Just had to pass it on:

http://nozzlerage.com/

[Michael Larson]

Originally Posted by Brian A. MacNeish

someone sent me this today. Just had to pass it on:

http://nozzlerage.com/

It's funny but I didn't see any maple leafs



No offense intended to my Canadian friends

[Kevin Davis]

What happened in the 70s that made gas start to fluctuate so much?

[klott]

Arab oil embargo.

[Michael Larson]

1979 was unrest in Iran and the ascension to power of the Ayatollah Khomeini once again constraining supply.

[Doug Edwards, CMI]

And Jimmy Carter happened.

[Michael Larson]

Originally Posted by dedwards

And Jimmy Carter happened.

It's hard to forget that nincompoop but I'm trying.

[Brian A. MacNeish]

http://www.laspe.org/board_forumreps...ldoilprice.ppt

A bit of recent history that predicted the present!

[Brian A. MacNeish]

Originally Posted by Kevin Davis

What happened in the 70s that made gas start to fluctuate so much?

Oil rich countries sent their brightest to university in Europe and North America where they became informed and trained in economics. They then realized that oil was worth way more than $2 per barrel and they were being robbed of a valuable resource to supply others with a high standard of living!!

[Doug Edwards, CMI]

In what alternate universe?

[Brian A. MacNeish]

Originally Posted by dedwards

In what alternate universe?

The purpose of OPEC, as with any cartel, is to

limit supplies in the hope of keeping prices high. The oil industry has been plagued by production booms and falling prices ever since Colonel Drakes' discovery of oil at Titusville, Pennsylvania in 1859. Just as the major oil companies colluded from the 1920's to the 1960's to prevent prices (and profits) from falling, members of OPEC meet on a regular basis to set production levels in the hope of maintaining prices. The essential nature of oil (no substitutes) coupled with its limited number of suppliers make it the ideal product for cartelization.

http://www.cnr.vt.edu/lsg/intro/oil.pdf

[Doug Edwards, CMI]

When was it $2 a barrel

[Brian A. MacNeish]

http://inflationdata.com/inflation/i...ices_Chart.htm

http://www.oilandgasconfidential.com...de_Prices.html

So it was a little above $3 in 1970-71. Is that really what it was worth?