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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: American Spirit who wrote (324614)	2/4/2007 12:35:36 PM
From: tonto	Respond to of 1576293

The U.S. petroleum industry's price has been heavily regulated through production or price controls throughout much of the twentieth century. In the post World War II era U.S. oil prices at the wellhead have averaged $23.57 per barrel adjusted for inflation to 2006 dollars. In the absence of price controls the U.S. price would have tracked the world price averaging $25.56. Over the same post war period the median for the domestic and the adjusted world price of crude oil was $18.43 in 2006 prices. That means that only fifty percent of the time from 1947 to 2006 have oil prices exceeded $18.43 per barrel. (See note in box on right.) Until the March 28, 2000 adoption of the $22-$28 price band for the OPEC basket of crude, oil prices only exceeded $23.00 per barrel in response to war or conflict in the Middle East. With limited spare production capacity OPEC has abandoned its price band and for close to three years was powerless to stem a surge in oil prices which was reminiscent of the late 1970s.