Corrected for inflation, gasoline prices are now about tied for the lowest since 2010. They are even with the price this same time of year in 2005. They are down about 25% from their all-time peak in 2008 just before the economy crashed. Prices usually bottom out around the New Year, so we are likely to be seeing even better prices in the coming months. What do we have to attribute for this? I think it is threatened competition from fuel efficient and non-gasoline cars. Through the Bush years, with a pair of oil men in the White House, there was no chance of tough efficiency standards or investment in alternatives. Gasoline prices steadily rose in 2002-2008 by 19%/yr. Now we are getting those standards and those alternatives. The oil cartels dont want us to transition to something else while they still have oil in the ground. The best way for them to make investment in alternates look less attractive is to keep gasoline cheap. Demand is not yet coming down a lot, but it has leveled off such that it is about the same as 10 years ago. What scares them is that the demand may drop off soon. Lets scare them some more.
Posted on: Tue, 07 Oct 2014 10:55:13 +0000
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