Transportation Fuels Policy Since the OPEC Embargo: Paved with Good Intentions

摘要

By the end of 1972, things were great for oil. Prices were on a steady downward trend, falling on average by over 1 percent per year from 1861 to 1972. Real prices peaked in 1864 at $115.45 per barrel and trended downward reaching a low point of $10.42 per barrel in 1970. (All real prices are in 2011 dollars.) The drop in real oil prices coincides with increases in US oil consumption. Consumption increased dramatically from 0.011 quadrillion BTUs (quads) in 1875 to nearly 35 quads in 1973. Vehicle ownership was rapidly increasing and coal was giving way to oil as a fuel for electricity generation.