Oil Price Volitility and the Volt

Yesterday, oil prices climbed 5$ per barrel in 7 minutes on speculation of a standoff between the UK and Iran, who captured their soldiers. See story here.

Oil prices once again are touching the 70$ mark. They have gone over $80 previously. Many experts believe that as we start going over the peak of production, as international demand soars, oil prices could rocket uncontrollably. So-called Peak Oil Theory. Couple that scenario with worsening Middle East war issues, and we are in big financial trouble!

Enter the Volt.

Using a plugin electric car for average commuters will allow millions to not use gas at all. As we’ve mentioned in previous posts, the energy source will be shifted from gasoline to our power grids, which use multiple sources, but mainly coal and natural gas.

The U.S. and Canada have tremendous coal supplies, but burning it makes alot of CO2, and hence will worsen global warming. Natural gas reserves, however, mostly are still in the Middle East.

So, driving a Volt alone is not enough to save the West from geopolitical financial influence by the Middle East. We must also concentrate on other newer alternative energy sources!

This issue is addressed by Larry Burns, GM’s VP for R&D

“Whether your concern is energy security, global climate change, natural disasters, the
high price of gas or the volatile pricing of a barrel of oil and the effect that unpredictability
has on Wall Street – all these issues point to a need for energy diversity,” Burns said.
“Today, there are more than 800 million cars and trucks in the world. In 15 years, that will grow to 1.1 billion vehicles. We can’t continue to be 98-percent dependent on oil to
meet our transportation needs. Something has to give. We think the Chevy Volt helps
bring about the diversity that is needed. If electricity met only 10 percent of the world’s transportation needs, the impact would be huge.”

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Posted by: Lyle