Loren49
Platinum Member
The overproducing of oil and the developing of new markets caused the price of oil to fluctuate wildly. In 1862 a barrel (42 gallons) of oil dropped in value from $4.00 to 35 cents. Later, when President Lincoln bought oil to fight the Civil War, the price jumped back to $4.00, then to $13.75. A blacksmith took $200 worth of drilling equipment and drilled a well worth $100,000. Others, with better drills and richer holes, dug four wells worth $200,000. Along side the new millionaires of the moment were the thousands of fortune hunters who came from all over to lease land and kick down shafts into it with cheap foot drills. Most failed. Even Colonel Drake died in poverty. As J. W. Trowbridge wrote, “Almost everybody you meet has been suddenly enriched or suddenly ruined (perhaps both within a short space of time), or knows plenty of people who have.”
Read more: John D. Rockefeller and the Oil Industry : The Freeman : Foundation for Economic Education
Article on life of John D Rockerfeller stated drop was due to overproduction
Those few who struck oil often wasted more than they sold. Thousands of barrels of oil poured into Oil Creek, not into tanks. Local creek bottoms were often flooded with runaway oil; the Allegheny River smelled of oil and glistened with it for many miles toward Pittsburgh. Gushers of wasted oil were bad enough; sometimes a careless smoker would turn a spouting well into a killing inferno. Other wasters would torpedo holes with nitroglycerine, sometimes losing the oil and their lives.
Read more: John D. Rockefeller and the Oil Industry : The Freeman : Foundation for Economic Education
Unfettered free market had/has its downsides. Not everyone wins when companies/individuals do not pay the cost of their pollution.
This article does not give good evidence of what you claim. Also just for comparison
In 2012, the relative value of $0.35 from 1862 ranges from $6.38 to $973.00.
In 2012, the relative value of $4.00 from 1862 ranges from $73.00 to $11,100.00.
Measuring Worth - Measures of worth, inflation rates, relative value, worth of a dollar, purchase power
The values you chose to support your claim were from 1862 on a barrel (42 gallon) of crude.
Probably not a good idea to hijack this enjoyable thread but your hollow claim needed to be addressed. The balance of free market and regulation is very complex and debated by many. Bottom line with solar is its working pretty well.
Loren
