Comment 51864

By Undustrial (registered) - website | Posted November 18, 2010 at 14:23:56

The problem with Turbo's graph is that it shows gasoline prices, not oil. Gasoline prices reflect a whole host of other factors, and rarely show more than a moderate correlation with crude oil prices. Ask anyone who's worked at a gas station - all their gas is purchased weeks in advance. The day-to-day price fluctuations are as much a game as anything else.

If such an inflation-adjusted graph were to show crude oil prices over time, this is what it would show.

http://inflationdata.com/inflation/image...

Notice how well it lines up with everything we've been trying to say? A gradual curve upward over the last 64 years, with big jumps around the American peak (late 70s, as well as the oil embargoes), Soviet Peak (late 80s) and now with the global peak. Despite the huge drop in 2008 (a clear result of the highest prices ever), the line starts shooting upward again, at nearly the same rate, within a year. And if you check the current prices, it's gone even higher since the graph was made.

"Today, the notion of progress in a single line without goal or limit seems perhaps the most parochial notion of a very parochial century." — Lewis Mumford

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