Oil Wager: Four Years
We're forty percent into a ten-year wager over the price of oil versus burgers, and it's pretty close. A barrel of light sweet crude cost the equivalent of 19.2 Big Macs in 2005. Today it costs just over 21. I'm betting that, contrary to fears of Peak Oil, you'll be able to get more than a barrel for your 19.2 Big Macs six years from now.
CNN says that cheap oil is here to stay, citing Deutsche Bank's prediction of a $65 barrel price next year.
Here's the text of the wager, the original of which has been lost to bit rot.
1 December 2005
WHEREAS
forum member wasoxygen has been quite convinced by Julian Simon the Wise that a Paradise of Plenty is nigh upon us, when the streets shall flow with honey and any other Goods and Services which the Invisible Hand shall deem needful; and member uncanuck believes this not necessarily so to be, it is hereby
RESOLVED
that, on December 1, 2015, should the cost in United States Dollars of one barrel of Light Sweet Crude Oil, today valued at $58.75, according to 321energy.com or some other mutually acceptable authority, divided by the average cost in the United States of one Big Mac, today valued at $3.06, according to The Economist or some other reputable source, be greater than 19.2, then wasoxygen shall pay uncanuck the amount of ONE HUNDRED U.S. DOLLARS, and if the ratio shall be less than 19.2, uncanuck shall pay wasoxygen the same amount.
CNN says that cheap oil is here to stay, citing Deutsche Bank's prediction of a $65 barrel price next year.
Here's the text of the wager, the original of which has been lost to bit rot.
1 December 2005
WHEREAS
forum member wasoxygen has been quite convinced by Julian Simon the Wise that a Paradise of Plenty is nigh upon us, when the streets shall flow with honey and any other Goods and Services which the Invisible Hand shall deem needful; and member uncanuck believes this not necessarily so to be, it is hereby
RESOLVED
that, on December 1, 2015, should the cost in United States Dollars of one barrel of Light Sweet Crude Oil, today valued at $58.75, according to 321energy.com or some other mutually acceptable authority, divided by the average cost in the United States of one Big Mac, today valued at $3.06, according to The Economist or some other reputable source, be greater than 19.2, then wasoxygen shall pay uncanuck the amount of ONE HUNDRED U.S. DOLLARS, and if the ratio shall be less than 19.2, uncanuck shall pay wasoxygen the same amount.