Saturday, June 30, 2007

Decoupling or CoFactors?

I've come to expect more from Chronicle reporter Brett Clanton. And yet, he disappoints in this latest piece on gas prices:
"Yet oil analyst Tom Kloza argued this week that gas prices 'decoupled' from crude this spring and summer as separate factors began to impact the price of each. His response to $70 oil?

'Big deal. It does not mean that you will be paying more at the pump this summer,' he said."
Why can't the readers handle the fact that gas prices are more complex than the costs it takes to produce the product they desire so much? I imagine it is the lack of basic economic knowledge by the public that led to these results when asked questioned on the subject:

At a time when millions of Americans are focusing on energy issues and policies, a new survey finds that most U.S. adults have a fundamental lack of knowledge regarding energy demand and supplies and the role of America's oil and natural gas companies. In fact, when presented with 20 multiple choice questions, on average more than 25 percent of respondents said they were "not sure," and in many cases people chose the response that is farthest from the correct answer.

Test your Energy IQ here with the answers here.
I got 80% right and the incorrect answers were in close proximity to the correct ones.


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