November 12, 2008
The global economic slowdown has had a very palpable effect on gasoline prices of late. Demand has dwindled severely, causing oil prices to hit a two-year-low today. But according to the International Energy Agency, the respite for consumers will be brief. Even though the Energy Agency cut its forecast for global oil demand by 10 million barrels over the next twenty years, it seems that an eventual oil shortage is -- unsurprisingly — inevitable. Producers are likely to be unable to produce oil at the same rate that the world is consuming it, and so the IEA expects $4 a gallon through 2015 and $6 or $7 a gallon by 2030. “Current global trends in energy supply and consumption are patently unsustainable — environmentally, economically, and socially,” the energy agency said. “But that can — and must — be altered.”
Comments | 5 Total
November 12, 2008 at 11:38am by Rip Empson
So here's the kicker: The IEA also says that, at the rate we're going right now, carbon emissions are expected to double by the end of the century. Which means the overall global temperature would rise by 11 degrees. An 11 degree rise obviously means catastrophic global warming, end of life on the planet etc. etc. Hey, at least I won't have to move to Florida for the sun when I retire! So then, high gasoline prices, if they continue to encourage the transition to alternative sources of energy, really aren't a worry for me. I'll just ride my scooter to work like a good green American. To be honest, I'd be surprised if gas prices weren't up to $4 a gallon before the summer driving season. There just isn't enough oil right now to supply the ever-increasing demand.
November 12, 2008 at 2:11pm by Randall Drew
Gas prices haven't fallen because the oil companies felt like it. They are falling because YOU AND I are sick and tired of getting screwed and cut back on driving. WE DO MAKE A DIFFERENCE!! I plan my trips much more carefully, and spend more time closer to home when I do go out for recreation. Same goes for heating oil. If we lower our thermostats, burn alternate fuels like coal and wood (I heat my house with wood from my own property, which is a lot of work for me BUT my total cost for oil last year was $0.00) we can make a difference in the market. Let's face it. We are addicted to oil, but some of us are mad as hell and we aren't going to take it anymore....
November 13, 2008 at 2:33am by Glenn Croston
It's hard to say when it will happen to the price oi oil next month or even next year, but the long term trend is predictable. There's only so much oil in the ground, particularly the kind that is easily recovered, and developing economies will grow and use more. A lot more. My long term bet is for expensive oil.
November 13, 2008 at 10:48am by Kristen Zatina
I absolutely agree with Randall Drew. WE DO MAKE A DIFFERENCE!
As a newcomer to the real world trying to survive "the gas prices crisis" on an entry-level salary, I did a roadside experiment when the cost of a gallon surpassed $4.00 this past summer. For one week, I made myself use a different method of transportation to get to and from work every day, including my car, carpooling, public transportation of the train and the bus, and then a bike. The entire experience was incredibly eye-opening. We actually DO have various options to cut back on our gas consumption. For Randall, it might be planning his trips more carefully while for me, it's taking the bus to work whenever I don't need to use my car for business.
Though he's definitely not America's favorite TV host, it was Bill O'Reilly who looked into the camera one night a few months back and summed up this seemingly complicated oil issue in the simplest of terms - drive less, demand decreases, prices drop. No spin zone there. It just makes sense.
Anyway, I documented my week long experiment on video and the company I work for posted it in a series of six 2-minute segments. If you're interested in viewing it, please visit http://www.entrequest.com/truby.html and scroll down the videos titled "Alternative Routes" on the left side of the web page.
- Kristen Zatina
www.entrequest.com