Monday, September 8, 2008

Oil Price Changes...

...several readers have noted that oil prices have been "down" and wondered how that affects the Daily Sprawl projections.

For starters, the fact that $100 per barrel oil is considered "down"--while technically accurate--demonstrates the ease at which we accept such fundamental market changes.

Remember, roughly three years ago, gas was below $50 per barrel. In other words, it has doubled in one-third of a decade. The idea that $100 per barrel will provide relief from our sprawl-ending predictions neglects the reality that prices remain historically high for fundamental supply and demand reasons (as opposed to artificial shortages such as the 1970s OPEC actions).

On point, this Barron's article presents an interesting oil price discussion.

You have to register to read it so if you don't want to do that, this blog discusses some of the major points.