The most distant futures prices fell from a bit more than $ per barrel just before the Gulf War to $ to $ a barrel a year ago. The current six-year futures contract has risen, on net, over the past year and has been a little above $ per barrel in recent days.
Relatedly, it is possible that as the economy evolves in response to new technologies, production is becoming less capital intensive than it was in earlier decades.9 Another possible explanation for the weakness of investment in the United States has been a decrease in competition within industries, as evidenced by decreasing firm entry and exit rates as well as increased industry concentration.10 Less competition allows firms to maintain high profits while lowering the pressure on them to increase production to maintain market share.