Oil wager two-thirds in

Posted on August 02, 2012 by Steve

Oil closed yesterday at $88.91, and the burger benchmark is $83.14, thanks to a recent bump in the Big Mac Index.

This marks the two-thirds point in my ten-year wager with Dave on oil prices, and it still looks like it could go either way. Taking a page from Julian Simon, I am betting that oil will not become more scarce and expensive but rather more cheap and readily available. Two game-changing technological advances are working on my side. Fracking is already delivering on its earth-shattering promises of abundant natural gas, driving energy prices down. And a shift toward electric vehicles is well on its way. A mild winter and weak economy probably aren't hurting my side either.

Keep in touch Dave, talk to you in three years and four months!

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