I was originally attempting a means by which to compare commodity prices like oil to a measure of production by which to determine whether a commodity is over or undervalued. Instead I just came up with another chart that explains (yet ONCE AGAIN) why it isn't Exxon or BP or "Big Oil" jacking up prices, as much as it is the fact the world economy is growing faster than oil production and therefore (revisiting the basics of economics 101 which most people don't get during their education) since demand is exceeding supply, prices have gone up.
They didn't have 2008 figures which I'd be curious to see with this last spike, but yeah, my apologies to all you freshmen and sophomores in college out there, apparently it isn't Dick Cheney and Haliburton just trying to piss you off. It's just simple economics.
Of course we could allow for drilling offshore or in ANWAR which would increase supply and thereby lower...oh heck, never mind. I'm foolishly assuming people care about lowering the price of oil when in reality
these people want nothing more than to destroy the US economy.
No comments:
Post a Comment