Reading an article ("Strategy & Tactics" #52, Sept/Oct 1975) recently on the "Carter Doctrine" and the plans for an invasion of Saudi Arabia back in the mid-70s, I came across an interesting line:
"The price of oil doubled to an intolerable $11.65 per barrel by early 1974."
Well, says I, what would that be in present-day dollars?
Calculating it out with the aid of the information here, I find that $11.65 in 1974 dollars is the equivalent of $38.07 in 2004 dollars.
The hell? With oil prices up to $64/barrel at the moment, what's going on and why are we willing to tolerate oil prices that are more than twice what the "intolerable" price should be?
The impact may very well be starting to sink in, though.