The Oil Drum

70 comments on This Week in Petroleum 11-28-07

Comments can no longer be added to this story.

moonstroller on November 29, 2007 - 9:14am

I remember, during the Carter administration people actually started to conserve energy. The electric companies had to raise their prices to protect their profits, as did other energy companies. I think, that the great fear of all energy suppliers, including the Arab companies is that Common Americans will suddenly wake up and discover they can save money by simply going to bed at sunset, turning down the temp on the hot-water heater and staying home on the weekends.

Most of the people I associate with are starting to walk to work, replace all their incandescent bulbs with fluorescents, (as I have done months ago), and quit using their cars or doubling up. We are all staying home on the weekends, only using our cars when we have to. I think the magic price of gas that promotes this phenomenon is $3.00 and above.

I believe that the oil companies know that if prices were to rise above this mark, it will cause a trend to set in the minds of most Americans and they (the oil companies) will be caught on the tail-end of a conservative revolution that will erode their profits and inflict fear in the minds of most energy suppliers. If I'm right, gas prices should continue to fall back below $3.00 a gallon as the oil companies try to get people back on the road.

After the Carter days, one of the first things they tried to do in every state was lobby to get rid of the 55 mph speed limit. There was a tremendous promotion to get people to move away from the conservative, alternative energy mindset. They tried really hard to bury this mindset. And, they were successful.

I think we all know the direction we need to go and one day, it will happen and that is what will bring down the economy. The transition to alternative energy, if it is even possible , will be a sudden shift in the mindset of the people. This is the fear in the minds of all energy suppliers. If it sticks, it will be their end, even before their oil supply tanks are moving towards empty.

Comments can no longer be added to this story.

Sina on November 30, 2007 - 6:23pm

Another thing people fail to realize is that they have tow options when reducing energy consumption, both equally effective. They can 1) Cut down by doing less (50% less driving, 50% less time lights are on, etc.) or 2) Become 50% more efficient (fluorescent vs. incandescent, hybrid vs. conventional IC, etc. etc.). As our friend Kunslter points out, however, it may be that we have to completely revamp our car culture and stop blowing green smoke up people's asses with hybrids, plug-ins, which realistically will never attain > 25-30% of the U.S. automobile fleet even with soaring gas prices.