Oil Hits $100 per Barrel Today

25 Responses to “Oil Hits $100 per Barrel Today”

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   lkruijsw Says:
   January 2nd, 2008 at 3:33 pm

   First trading day of the year.
   Good mindset for 2008.

   Excellent timing!

   Lucas  
   
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   Tim Says:
   January 2nd, 2008 at 3:45 pm

   One of the primary reasons is that the dollar is collapsing as a global currency. Congress can’t control their spending so the Fed is simply flooding the market with the fiat currency. The more they print, the less ours is worth thus everything costs more. The US $Dollar has lost 50% of its value in less than 5 years.

   US $ Dollar vs. Euro: http://www.x-rates.com/d/USD/EUR/graph120.html

   US $ Dollar vs gold: http://www.kitco.com/charts/livegold.html

   The Collapsing $US Dollar: http://www.europac.net/  
   
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   Jim I Says:
   January 2nd, 2008 at 3:49 pm

   If this doesn’t put the fire under GM’s butt to get the Volt into production, then nothing will. Gasoline is going to take another huge jump in price this summer, which is going to hit that “tipping point” for that many more people who will start looking at alternatives.

   The Volt is going to sell as fast as they can make them!

   Take the time you need and do this vehicle right. But the sooner you can get production units rolling off the line, the better!!

   And please remember that Lyle’s wait list was in place since January 2007, so we hope we will be toward the front of the line for the first run of vehicles….  
   
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   Steven B Says:
   January 2nd, 2008 at 3:54 pm

   My perspective: If absolutely nothing else, this ever-increasing cost of oil, in terms of US dollars, is constantly heralding the coming of our new energy future. When it comes to the same question of powering cars that there was in the beginning: ICE, steam, or electric, we’ll now be allowed to answer, more than ICE. Gridable cars are the future, whether their EREVs like the Volt or PHEVs like the Vue plug-in, we have more than just gasoline and petrodiesel. The only drawback is that it has taken 100 years to get it.  
   
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   Dave G Says:
   January 2nd, 2008 at 3:55 pm

   [quote comment="23913"]One of the primary reasons is that the dollar is collapsing as a global currency. [/quote]

   While I can’t dispute the falling value of the dollar, and it’s effect on oil prices, I would point out that gas prices in Europe are at an all time high. It’s a global issue.  
   
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   Jim I Says:
   January 2nd, 2008 at 3:57 pm

   [quote comment="23917"] The only drawback is that it has taken 100 years to get it.[/quote]

   Yes, but it will be worth the wait!!!!!!!

     
   
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   Daniel Says:
   January 2nd, 2008 at 4:14 pm

   Speaking of oil, go see “There Will Be Blood”, it’s incredible!

   I think that gas will unfortunately always be at the $3 and above mark for us.

   I’m already deciding to bike to work this year. It’ll take me the same amount of time, plus I’ll be in better shape and save $1000/yr on gas.  
   
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   AES Says:
   January 2nd, 2008 at 4:21 pm

   I hope that rising oil prices inspire GM not only to release the Volt, but to also think about alternative range extender fuels. I tend to take a LOT of long-range trips in addition to my 10-20 miles a day of SoCal freeway traffic.

   In a couple years if I want to drive out to Vegas in my Volt, it would be nice to fill up with my choice of gas, bioethanol, or liquified natural gas (and maybe even compressed natural gas) with impunity.

   I think that the inherently flex-fuel nature of some combustion engines, such as the Cyclone, make them a pretty versatile solution that will keep the hydrogen economy at bay for quite a while.  
   
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   Firefly Says:
   January 2nd, 2008 at 4:42 pm

   The oil company’s last great hurrah. But it’s not like we didn’t see this coming. I place the blame on corporate and political greed. I honestly thank God every day cars like the Volt and photovoltaic development are as near to us as they are. I, like many of my colleagues will be very pleased when the Volt comes out. Add a Volt to a home or business with a fairly efficient PV recharge system and you’ll enjoy the fact that the principal part of your car’s energy capacity will come from the one energy source no man can own or control. The farther we take our economy from oil-based to domestic renewables, the stronger we’ll make our economy. Besides, balance is being restored and I hope our government and business leaders aren’t so short-sighted to see that the best way to make your house look good and stay clean is to live and work IN it…  
   
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    Tim Says:
    January 2nd, 2008 at 5:58 pm

    I think it is absolutely ridiculous that one of the factors driving oil prices today is a report from OPEC saying that member nations may not be able to supply enough oil in 2024. That is nearly 30 years away – and we are raising prices for that today.

    So not only are we raising prices for ever nit picking reasons today but also the ones far in the future.  
    
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    Mark Bartosik Says:
    January 2nd, 2008 at 6:40 pm

    RE #10 – Tim

    Tim, has you got a link to this?

    quote:
    OPEC says that members may not be able to supply enough oil in 2024.

    If you got the date right, then it is 16 years away. The average car purchased in the USA has a 17 year lifetime before it is retired. So that means the official word from OPEC is they may not be able to supply fuel for a car that you buy TODAY for the typical lifetime of that car.

    Given OPEC’s conservative and reassuring outlook this is a in-your-face as you could expect.

    I heard on NPR that there was only one (very large) trade at $100.00, and that overall volume was low today. Unfortunately, I think that there has to be severe pain before most people will change habits.  
    
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    Rashiid Amul Says:
    January 2nd, 2008 at 7:39 pm

    [quote comment="23967"]RE #10 – Tim

    I heard on NPR that there was only one (very large) trade at $100.00, and that overall volume was low today. Unfortunately, I think that there has to be severe pain before most people will change habits.[/quote]

    I’m not sure what that last sentence means exactly, but not all of us can change our habits. I drive 101 miles for work round trip because I have to, not because I want to. I hate the commute, but have to raise a family and need the money this job pays. The train costs more to take and it takes longer to get me to work. I can’t commute with anyone because I leave my house at 5:00 AM and most people don’t want to do that. Many many people may want to change, but simply can’t. Even at $5.00 a gallon, I still have to drive to work, although maybe the train will be cheaper at the point. My only option is an EREV. I just hope GM can do it right.  
    
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    Tim Says:
    January 2nd, 2008 at 8:03 pm

    Re: 11

    Mark,

    Here is your link:

    http://biz.yahoo.com/ap/080102/oil_prices.html

    Sorry for the fuzzy math I was too annoyed to think straight after I saw that.  
    
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    Guy Incognito Says:
    January 2nd, 2008 at 10:33 pm

    Oil hitting $100 per barrel is really good news.
    With any luck, this trend will continue.  
    
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    OhmExcited Says:
    January 2nd, 2008 at 10:56 pm

    http://www.etrucker.com/apps/news/article.asp?id=62865

    A Volvo study showed that ethanol and methanol work work equally well. They also showed that among 7 categories — impact on climate, energy efficiency, land use efficiency, fuel potential, fuel costs, vehicle adaptation, and fuel infrastructure — methanol ranked among the highest in all but the last two, while ethanol ranked low to lowest in all categories.

    Then, get this: Converting CO2 to Methanol:

    http://setamericafree.org/wordpress/

    “UOP, an Illinois-based chemical producer, has announced a partnership with the USC Loker Hydrocarbon Research Institute to develop and commercialize new technology to convert carbon dioxide into methanol.”

    So, as part of the E-Flex solution, GM should be promoting methanol even more than the “vegetarian” ethanol car. On the contrary, our cars should be omnivores.  
    
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    Mark Bartosik Says:
    January 3rd, 2008 at 2:01 am

    RE #15 methanol – several months ago I attended an energy conference, and happened to sit next to a guy working on methanol technologies.

    His disdain for ethanol was clear. He viewed ethanol as a sad mistake, politically/farmer driven. Obviously he was an interested party.  
    
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    Mark Bartosik Says:
    January 3rd, 2008 at 2:27 am

    RE Rashiid Amul

    Severe pain causing habits to change….

    Rashiid, I view high oil prices as good in the long term, but horrific for those that cannot afford fuel. Unfortunately, without massive government intervention cost is the only thing that will force people to alternatives. I’d be happy with government laws, like by 2015 all cars must be RE-EV.

    For each individual the habits that can be changed will vary. On average higher prices eventually force some habit change.

    e.g.
    Work 4 longer days instead of 5.

    Telecommute 1 or 2 days a week.

    The next job change, try to make it closer to home (this is also a quality of life issue).

    The next house move, try to make it closer to work.

    The next car buy a more efficient one – VOLT!!

    Don’t upgrade the kitchen cabinets, upgrade the house insulation. I’m sure there are plenty of houses with fancy kitchens and no insulation in the walls!

    Don’t build that house extension, or pool, add solar. Definitely don’t heat that pool (unless by passive solar).

    When the heating system needs replacing consider geothermal or combined heat and power.

    Eventually pain at the pump will force on average more train usage.

    More train usage and anger at slow commutes may result in train, track, and schedule upgrades.

    If gas reaches $8 / gallon, maybe bus routes will appear on popular routes.

    If the cost of a gallon of gas is $3.50, add in the cost of oil security (aircraft carriers, wars, etc.), maybe another $3 (only guessing), add in pollution clean up (e.g. cost of removing CO2 from atomsphere – maybe $2), if that makes the cost of gas $8.50 per gallon, then good. Economic activity that does not justify that cost should simply not happen.

    I have to pay money to dump waste in a landfill (or via taxes for residential waste). If my activity does not justify that cost I won’t do it. If it costs me $200 to commute to work to earn $300 I’d better find another way to earn money. That is the true market at work, but it is harsh and uncaring. The trouble is while we may have to pay for landfill space, we don’t have to pay (yet) for filling the air with CO2, or pay (yet) for security of oil. Those bills are for our children to pay!  
    
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    Jeff M Says:
    January 3rd, 2008 at 2:30 am

    Note that it actually closed (just barely) below $100… and inflation adjusted, it actually hasn’t reached an all time high, though it’s close as that all time high is only around $103.

    Higher MPG vehicles like the Volt isn’t going to help the other part of the problem higher oil and gas prices cause for those of us that heat with it (like the Northeast). Some day if may actually be cheaper to heat with electrical power again than natural gas   
    
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    Mark Bartosik Says:
    January 3rd, 2008 at 12:48 pm

    RE #18, Jeff.

    It already is cheaper to heat with electrical power than oil! As long as you use a ground source heat pump.

    My oil bill would have been about $3K, but my increase in electric bill is less than half of that for using a ground source heat pump.

    The most efficient way to heat that I’ve found (assuming an existing building) is combined heat and power, plus use the power part of that to run a smaller ground source heat pump. Trouble is that it is even more capital cost than just a heat pump.  
    
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    ug Says:
    January 3rd, 2008 at 1:46 pm

    I really think within the next 3 years we may finally see the consumer’s love-affair with SUVs get crushed by the reality of gas prices combined with the housing/credit-crunch. People are either going to keep their SUVs and not drive very much, or they are going to look for more efficient cars.  
    
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    Robert V Says:
    January 3rd, 2008 at 3:03 pm

    Tim,

    What about the US $ dollar vs Canadian $ ???

    Don’t mention!…  
    
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    noel park Says:
    January 3rd, 2008 at 4:25 pm

    ug, #20:

    Absolutely right.

    We have been looking at Aveos and Cobalts as replacements for our beloved but gas guzzling Impala SS. On price and fuel consumption, they are just not competitive with the equivalent models from Toyota and Honda.

    As we are not about to buy a Toyota or a Honda, at least not yet, we are just driving the Impala as little as possible. We have a high level of loyalty to GM, but we are not going to by an inferior car, for more money, even for them.

    My deep concern is that, if GM does not effectively answer the challenge of the Yaris, the Fit, the Corolla and the Civic, they will be so pummeled in the next 3 years that the emergence of the Volt will be too little, too late, for the corporation.

    Also, replacing the Cobalt with a captive import and putting the remaining people in Lordstown out of work is not an answer. If a GM car is an import, we might just as well buy a damned Honda or Toyota and have it over with.  
    
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    Dave G Says:
    January 3rd, 2008 at 8:19 pm

    [quote comment="24184"]We have a high level of loyalty to GM, but we are not going to by an inferior car, for more money, even for them.[/quote]

    From my point of view, big car companies are not loyal to me, so why should I be loyal to them?

    As for the Volt being too little too late, I don’t think so, at least I hope not. I like to believe the Volt is a big deal – a game changer.  
    
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    BORNGEARHEAD Says:
    January 3rd, 2008 at 9:19 pm

    I full electric vehicle would be a game changer. An ICE Volt for 2011, is not.  
    
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    canehdian Says:
    January 3rd, 2008 at 10:07 pm

    @#18, Jeff.
    It is (and has been for years) cheaper to heat with electricity than gas. People just dont realize that the idea of electricity being more expensive is using baseboard or portable heaters. They are massive energy suckers for little efficiency. We have an electric forced air heater in our home. It produces the same heat as a gas furnace, at lower cost.
    We spend about ~$300 a month to heat a large two storey house with electric forced air furnace, compared to my brother’s single story (no finished basement either!) bungalow with a gas furnace, paying ~$200.
    Friends with equivalent sized homes pay ~$500 with their gas furnaces.

    Oh, and our furnace will last almost forever. If anything is to break in it, its the heating element. And guess what? It can be replaced for $50.

    Friends and neighbours up the street are in the HVAC/installation business. They say a gas furnace lasts ~15 years. An electric can last for 30+. But people have this mindset that gas is better, so they pick gas over electric.

    To bring this all into perspective – people will most likely think the same thing when it comes to cars. This is, of course, the general un-informed public.

    Since this post is 90% off the topic of oil prices, I might as well give my 2 cents on that issue too

    The increasing price of oil is a good thing, IMO, however if no one makes alternatives (i.e. the VOLT) the public will be screwed.
    It will be take the bus (which will be packed everyday, because no one can afford to get to work in their cars) or if it comes to it, I will make my own electric car! (its not that hard actually. And my brother’s a mechanic, so he can get a shell of a dead car to use )  
    
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