Over the past century, as the industry became ever more
adept and efficient at finding, pumping and refining oil, Real Gas prices did
not keep up with inflation.
85 Years of Inflation Adjusted Gasoline
Graphic courtesy of the NYT
This long downtrend shows a minor spike in the 1930s, which
eventually reverted back to trend. There was a major spike in the 1970’s; It
subsequently collapsed in price some 50%, from $3 / gal to $1.50, over the 1980
to ’84 timeframe. It would not be outrageous to call that price action –
particularly the 1970s – bubble-like.
Quote of the Day:
"Winning can be defined as the
science of being totally prepared."
~George Allen, Football Coach