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To: Eylon who wrote (17644)	9/12/2000 2:37:58 PM
From: pater tenebrarum	Read Replies (5) \| Respond to of 436258

you forget that before '73, oil was too cheap as well. this was the decisive factor that led to the subsequent crisis, just as is the case now. i have a link somewhere where the events are recounted in some detail...i'll post it later. in any case, the gist of it was that inventories had become dangerously low way before the embargo, as prices had stayed too cheap for too long - while consumption had been rising, supply didn't keep pace. there was no energy policy to speak of, another parallel to the current situation. in inflation-adjusted terms, oil was at $72/bbl. in 1980. therefore, oil is still cheap. it's mostly a smaller share of the economy because of that fact - the more expensive it gets relative to other goods and services, the bigger its share becomes too.