Oil prices - going up -going down - and up again!

Our economy depends on oil, and the recent price hikes in crude oil are sending shock waves around the planet.  Personally, I think the excessively high prices at this time are driven by market speculation, very akin to the tulip frenzy in Holland some centuries ago. But even if there is a correction, over the next few years, the price of crude oil will rise, prompted by the clear evidence that cheap oil is becoming harder to access.  And, although we still have huge supplies of the stuff -  it now often costs more than the market will reasonably pay, to extract oil  from areas that have peaked, and from new dangerous, remote or deep offshore areas.  

At the same time, the increasing use of vehicles adds to the pressure - in 2007, globally we had about 622 million passenger vehicles, well up from about 53 million in 1950 (according to WorldWatch).  Add emerging China and India to that equation and we have a situation of more demand, and this will seriously impact prices. 

 

There is really only one way out of this - and that is to move, with a degree of urgency, to a non-oil based way of personal and business transportation.  I doubt if the local plumber can turn up to your house, with your new toilet and pipes,  using a push bike or via public transport, so there will have to be an alternative for him and for all those who need to move goods and sell services.  

It's time to review your transport - look at optimising your driving and review your next vehicle purchases.  For short distance driving, consider fully electric, and for longer distances, hybrid cars, or converting your existing vehicles to LPG.  In some areas, biodiesel may be the answer.  Look at whether you could change some your business processes, eg quoting or training,  to online. Rethink your location, combine deliveries and find creative ways to share journeys with others in and around your business.  Take time to plan - work out your dependence on the oil habit and find creative ways to kick your oil addiction. 

Picture ex Flickr World of Oil by Unity.Project