What do people think will happen as the world's economies start coming out of this slow-down!!
With regard to transportation fuel, we better start boosting production of renewable fuels as rapidly as we can and incentivise the purchase of more fuel efficient cars with some sort of carbon tax,...at least on gasoline.
YOu can count on $100+ oil in one year. In two years, who knows.. $130 - $150 ??
Without more fuel efficient cars being driven and more renewable fuels we could have a recession just based on the price of oil.
How to ruin OPECs birthdaystudies project that electric vehicles will not reach a market penetration deep enough to threaten OPEC before 2030, which means that we need near-term solutions as well. One option is a simple technical fix which, according to General Motors, costs just $70 per car: turning every new vehicle sold in the United States into a flex-fuel vehicle. Cars powered by internal combustion engines could run on any combination of gasoline and alcohol fuels such as ethanol and methanol made from coal, natural gas, and biomass. The spot price for methanol from natural gas, currently under $1 a gallon, is competitive on a per-mile basis with gasoline.
Congress could make this happen by imposing an open fuel standard, requiring new vehicles to be flex-fuel-capable. Such a standard would put a virtual cap on the price of oil. Consumers would opt for the most economic fuel on a per-mile cost basis and thus shift to substitute fuels the next time OPEC allows the price of oil to exceed a certain threshold. Because no automaker can give up on the U.S. market, the open fuel standard would become a de facto global standard. Cars sold anywhere in the world would be flex-fuel models, allowing small and developing countries to develop competitive fuel markets and domestic alternative fuel industries, while protecting themselves against economically devastating oil shocks.