Another day, another record oil price - we're almost getting used to it. Yet according to Michael Lewis of Deutsche Bank, as reported in the excellent piece in the Economist makes clear, in real terms, the oil price will not hit a historical record unless . . .

1. it exceeds $94 when rebased and inflated in line with America's producer-price index - done !
2. it exceeds $118 when measured by the consumer price index - nearly there . . .
   
3. it exceeds $134 according to the oil purchasing power of the average G7 consumer - 318 barrels equivalent in 1981
4. it exceeds $145 when oil last ate up the biggest share of Americans' disposable income, 8% whilst it is only just under 7% now.
5. it exceeds $150 a barrel when spending on oil as a share of global output peaked in 1980 at 5.9%, today it is 3.5%

You might also add to that whilst this continues to be a commodity priced in dollars (not a certainty), it may even have to go higher, because the international purchasing power of dollars ain't what it used to be. Anyway, the bottom line is that $150 oil really doesn't seem so extreme any more.

Alternative energy watchers have been quite fixated by the price of oil for some time, although there's no direct relationship that can be easily untangled between the two, it is for many the default benchmark for the arrival of alternative energy. And so this leads me to my next point, if oil prices are so high, why has the alternative energy IPO trail gone cold?

Here's a list of companies I've been keeping track of who seem to be holding out for better market conditions;

GT Solar
Real Goods
Oceanlinx
Falck Renewables
Everq
Eolia Renovables

The answer of course has to be the global credit crunch which has greatly unnerved markets. And we may not be clear of this until 2010.