This is a very interersting analysis. To me it shows clearly how the low fuel prices are beneficial to the American consumer who invests every 5 years in a new vehicle. The Automotive industry is arguably the prime industry given the time frame of the study you mention. Contrast that with schooling for instance. Higher education is almost necessary these days to achieve a level of living not hinging on the poverty line. Yet we see the incredible gap between the cost increase between gas and tuition. The luxury of higher education is maintained at a higher levels while the price of fuel to move the masses be it to work or to the mall where they will consume even more, is of overall importance and must be made avaialble for those of minimal means.
Yep, the US boom over the past 15 or 20 years has been helped by a lot of things (cheap credit, expansive monetary policy, ect.) but very inexpensive oil is definitely one of them. Oil has been falling in real terms for quite some time thanks to certain idiots (I won't mention names) who just want to maximize production. Thankfully they are out on their behinds and hopefully they won't be coming back anytime soon.
I know some of those "oil idiots" 
in the industry, Luis Guisti was the major proponent of it, incredibly stupid considering the price of oil during his tenure (did he want to give it away for free?) The ideal price of Oil has always been a mystery for oil producers and particualrly Saudi Arabia that holds most if not all the marbles.
The thing is that times are different, had we been talking to any other Repub or Dem (Clinton, Carter, Reagan) they would all want one thing... cheap oil.
Bush is different, he does not want current oil prices but is happy with medium to high oil. Being an oil man with connections to the oil industry does that to you.
That is why Saudi Arabia gambled, and it has payed off, what they fear is not private industry, they are too short sighted, what they fear is goverment led initiatives. They know they are very safe with Bush at the helm, so yeah it was a stroke of genious.
As for the world economy I do worry a little, perhaps it might not show signs of strain, but I want it to be this way for at least a decade or more.
"I know some of those "oil idiots" in the industry, Luis Guisti was the major proponent of it, incredibly stupid considering the price of oil during his tenure (did he want to give it away for free?) The ideal price of Oil has always been a mystery for oil producers and particualrly Saudi Arabia that holds most if not all the marbles."
Its not that he wanted to give it away for free but he wanted to build of the actual oil industry irrespetive of what that did to prices and revenues for the Venezuelan state. Why? Because he wanted more money and power for himself. The more PDVSA produced the more money for him. Look, the guy was making money off of Intesa. The insider dealing was incredible.
What really happened her was that the oil industry was taken over by the oil executives and managers who wanted to guarentee more jobs and money for themselves. They claim they were running it like a commercial enterprise but nothing could have been further from the truth. A commercial enterprise would maximize profits. They didn't care about profits - they just wanted to maximize production to benefit themselves and the hell with the rest of Venezuela.
Have you ever read "subversive oil" by Mommer
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