[Vision2020] The Price of Gas

[Donovan Arnold]

Bill,

Thanks for that information. Can you tell us what it was in comparison to 
1964? I believed their was a giant gas crunch back in 1970's no? I do not 
remember that time very well. I think my biggest concern in 1977 was when 
sesame street was on.

I was told that gas was to go to $2.80 before it comes back down. In San 
Francisco it is about $3.13 for gas. Amazingly high. I would be taking the 
trolley.

Take Care,

Donovan J Arnold


>From: "B.C. Strand" <Bill at strand.bz>
>To: vision2020 at moscow.com
>Subject: [Vision2020] The Price of Gas
>Date: Wed, 13 Apr 2005 23:18:57 -0700
>
>Mr. Arnold and Mr Harkin have been arguing about the price of oil and gas 
>in respect to overall cost of living. The easist way to make this 
>comparison is to go out tot to a web site such as the St Louis Federal 
>Reserve and download the historical data for the Consumer Price Index (CPI) 
>for energy as well as the CPI for all goods and services (minus energy). 
>The CPIs take into account inflation as well as relative use of different 
>goods and services.
>
>A quick comparison shows that energy costs were indeed significantly higher 
>in the late 70s then they are at the present time.
>
>As for the reason for the reason for higher gas prices - it is not crude 
>oil availability. Oil inventory levels in the US are at record high levels 
>(both in the stategic reserve as well as active inventories). It is the 
>potential shortage of REFINED products (gas, heating oil, jet fuel, etc...) 
>that have led to the high prices over the last year. Where 30 years ago US 
>refineries were running 80% of the time, last year they were running at 95% 
>levels (and were still behind the demand curve). And there is very little 
>new refining capacity planned in the US. In addition, the specialized 
>summer blends of states such as California and New York mean that gas 
>cannot be imported (they have to import the blend components).
>
>Bill Strand
>
>
>
>
>
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