Oil prices will continue to climb until demand for cheap gasoline is curbed in all markets.
Fuel prices must get two to three times the current price in order for investments in alternative solutions to gain progress on the scale of cultural change. That's right: $10-$15 USD per gallon. Imagine the impact that will have on your lifestyle and you'll see how only a culture change will start producing results.
A slack in demand from American markets (single digit decline over the last two years) is now already exceeded in demand increases from emerging markets (currently 2m barrels short per day, and growing fast). That means that no matter how much Americans cut back, or buy hybrids, the price will continue to climb.
America is the nation (25% of market) in a place to make the most significant contribution to conservation and that is important by itself. However, markets in the rest of the world must pick up from where we are right now by not starting their economies with the cars and standards of 20-30 years ago.
China and India should not pick up gas guzzlers from GM and Ford to fill their current demand. Highly fuel efficient cars must be the standard for all nations now. America cannot lead by example in this respect when the government and corporations refuse to set such standards as those in the Kyoto treaty.
When the world sees that America is not willing to be accountable or make sacrifices, where do we expect their motivation to do the same to come from? America is the only nation in a position to make this standard work and we refuse to take the responsibility.
Saturday, June 7, 2008
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