Comment on By the barrel, falling oil prices boost U.S. wealth

By the barrel, falling oil prices boost U.S. wealth

By the barrel, falling oil prices boost U.S. wealth XLE, the energy sector ETF, has been knocked back to its value in late 2010. [...] while the stock market has been sinking miserably when measured in dollars, it has been doing quite nicely in the stuff we all really need: barrels of oil. In 1970 - well before the first OPEC oil embargo - the price of oil was $3.18 a barrel and the S&P 500 index was 92.15. Not so good for America. [...] we've had a lot of ups and downs. Let's measure the value of America - of the collective net worth of all American households - in barrels of oil. Measured in another way, American households have a net worth that is about twice as large as the proven reserves of OPEC. Better still, in a remarkably short time our country has moved from serious energy dependence to an active debate about allowing exports of our surplus oil and gas.

 

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