Comment 76161

By A Smith (anonymous) | Posted April 23, 2012 at 17:24:11

World oil production, avg yearly increase.

1980-90 - 0.157%
1990-00 - 1.25%
2000-10 - 0.757%
2009-11 - 1.23%

Avg. price (US/bbl)

1980-89 - $25.5
1990-99 - $18.0
2000-09 - $45.5
2010-11 - $70.3

Oil production, from 2000-10, was 4.82X greater than 1980-90. In the past few years, oil production has actually matched nineties levels, when oil was as low as $12/bbl.

If you look at the price of oil in grams of gold, oil is actually lower than what it was in 1950...

http://pricedingold.com/crude-oil/

In the past year, gold is up 9.47% and in the past five, it is up 134%.

At the end of 1999, rates were 5.30%. Today they are 0.13%.

http://research.stlouisfed.org/fred2/data/FEDFUNDS.txt

In my estimation, the price of oil has little to do with depletion, but rather an interest rate policy that promotes indebtedness/speculation, rather than saving.

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