Gas Hysteria Continues

Sunday’s New York Times Magazine cover story was one part ‘Mad Max’ mixed with one part poor economics. The 7,400 word piece by Peter Maass was a gusher of scaremongering end-of-world predictions and claimed that an oil “crisis” is imminent. Maass filled his story with comments and views from Matthew Simmons, author of a new book called “Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy.” The story did its best to paint a great scary oil conspiracy and an inevitable “crisis ahead” “whether in a year or 2 or 10.” Maass joined the growing journalism crowd by calling oil prices a “record.” Just as others before him, Maass ignored basic math and didn’t adjust the prices for inflation. Maass also referred to the threat of oil hitting $100. But then he quoted Simmons who said “I wasn’t talking about low triple digits.” Yet the same story said that oil prices would drop again. To quote Maass, “So after a brief windfall for producers, oil prices would slide as recession sets in.” For more Gas Hysteria, go the Free Market Project Web site.

Dan Gainor
Dan Gainor is The Boone Pickens Free Market Fellow and Vice President for Business and Culture for the Media Research Center