Betting on Peak Oil

Thursday, August 25th, 2005

Steven Levitt makes an eye-opening point in Betting on Peak Oil:

Imagine that a brilliant inventor came along and said that he had invented a pill you could drop into a gallon of distilled water to turn it into gasoline. How much would you be willing to pay per pill? For most of the last 50 years, the answer is next to nothing, because a gallon of gas usually costs about the same as a gallon of distilled water.

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