Sunday, April 10, 2005

The Recent Spike

woah, $58.42 a Barrel. Though that was a couple of days ago, till Greenspan came out and said hold up, the shit ain't worth that much. It should cost double though, If you sift through the rest of the comments, and Goldman Sach's $105 guesstimate, there's a pretty good reasoning, kinda goes like;

If oil is cheap, then people buy SUVs and more oil is needed, then it gets wasted on SUVs. If it is Expensive, then people will seriously consider more fuel-efficient cars, and less oil will be needed. The doubling of the price of a barrel in the last year hasn't seemed to be enough to cause this reaction, though SUV sales have dropped and Hybrid cars still sell like hot-cakes (minus those piss-weak little cars, the ones that look like an umbrella over a scooter). The idea of US$105/bbl (Barrel) is to make it too expensive to run an SUV like it was a normal car.

The other bold prediction which I'm waiting to see is that at US$52/bbl, the price will halt the fall from the high reached earlier in the week, because there's enough support at that price. and to think six years ago it was US$10/bbl.

I'm slightly concerned though, as my place of residence makes it a bit difficult to get to uni without my V6 station wagon, and boy is it a fat tub of lard. Great for the coast, especially when you're living with your parents and need a bit of private space with female company occasionally, but in the city when you've got your own place? pfft. Now how to turn it into a fuel efficient 'sik' beast worthy of a personalised numberplate without spending any more money than I can get for the big one... and it's got to be done while potential buyers aren't concerned that the price of fuel'll hit AU$2/litre. Yeah, that's right americans. work it out. we're paying $1.10/litre now. I'm downloading atm, and on dial-up that means one slow browser window at the same time, which is why I'm wasting time on my blog. but roughly means we're paying about US$1/gallon more than you are. Damn SUVs. Tax that ass if the price isn't big enough to change your behaviour. posted by Keegan at 3:51 pm

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