Monday, December 22, 2008

OK, So oil prices are down. Now what?

If you believe that Oil Prices will stay at the level they have been, think again!
OPEC WILL raise oil prices as soon as they can and as high as the market can stand. That is a simple rule of economics. Since it is Saudi Arabia’s(and others) major, if not sole source of income, when the price drops on the world market due to various economic variables it is like you or I getting a salary cut every time it snows here this winter.
So for OPEC to attempt to control the production rates of oil, which directly controls the demand i.e. price, because the demand now out weighs the supply is a no brainer.

So what can we do about it? I mean besides lip service to some broad stroke policy statement made in DC. Hmmmmmm what?

I starting to think about how I could reduce my costs associated with oil. I need it when I need it, heat my house, drive my car, lights etc. but I can reduce it. Turn lights out, change light bulbs out to low energy LED or fluorescent (yes I know there is an environmental impact with all this, but practically speaking) turn the heat down few degrees, and I drive slower when I do drive. Conserve more stuff and make that your life style. And since this about bicycles, use one more often than I have!

Yep, if we all demanded of ourselves the behaviors that we might be asking Government to do there would be fewer problems to solve. Behaviors that would directly put a huge dent into our need for OIL and might make it a far less of an issue in the overall picture. Too bad a few US auto makers didn’t get the message earlier, things might be brighter in Detroit this winter for all those associated with that industry. But alas it is human nature to take the path of least resistance. Won’t make you richer, stronger, or smarter, but it is easier.

This past week’s ice storm in the Northeast has forced the example of what is like to live without electricity, from a few hours to days and looks like weeks in some places. Imagine for just a minute, what it would be like to have that even more wide spread and for longer periods of time. Use your imagination because in this new world we all live in, with current events, economic and other wise, it’s not all that much of a stretch as it might had been say when gasoline was .50 cents a gallon.

So that visceral reaction to $4+ a gallon of gas will be back, maybe not at $4+ but $3.50 is not bargain either.

Ride more, save more!

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