Let the Seduction Begin

A story, repeated across the country, from my local newspaper:

Sonoma County gasoline prices have dropped more than 40 cents in the past month and they could go lower this winter, approaching what motorists paid a year ago.

Sure. And S.U.V. prices are down with good deals. Demand for hybrids will level off or fall. Everyone can relax, because gasoline prices are almost back to last years levels.

Nevermind that last years levels were new highs. This is how the American public is seduced into energy complacency. Anyone who understand markets knows that nothing goes straight up or straight down. As peak oil manifests itself, prices will fluctuate on a general uptrend. Hopefully that trend will continue in a gradual, measured, stair-step manner allowing our economy to adjust. God forbid there should be a revolution in Saudi Arabia or a major disruption in oil supplies.