Memories are short, and we often mistake prices of the last few years as indicative of the historical norm. Indeed, when it comes to the price of crude oil, most Americans would probably be surprised to learn that it is still well above the long-term historical average, once we adjust for price inflation. Contrary to the popular rhetoric, cheap and plentiful energy has been the norm for the United States economy. There is nothing “unnatural” or “dangerous” about giving Americans access to affordable energy. Crude Oil Prices Figure 1 below shows the history of U.S. crude prices. FIGURE 1: Real (Inflation-Adjusted) U.S. Crude Oil Prices, 1950-2015 Contrary to popular belief, oil is not “cheap” right now, compared to the historical average. Over the period 1950-2015, the average annual price of a barrel of crude would be $39, when put into 2015 dollars using the Consumer Price Index. SOURCE: EIA […]