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First on this Memorial Day my heartfelt thanks and appreciation to our troops on the battlefield, and my wishes for their safe return, and thanks too to all those veterans who have gone before them, and let us remember those who have lost their lives for our freedom.
When the Volt was first introduced in January 2007, oil was roughly $60 per barrel. Now it has touched $135. Timely as the Volt concept was then, GM couldn’t have predicted how important this car rapidly would become.
U.S. gas prices are now around the $4.00 mark or greater. Analysts point out that although oil prices have increased 33% since the beginning of the year, gas prices have only increased 22%. Refineries have been absorbing some of the cost increase, but this may not be able to continue. The oil price bubble may grow further, and Goldman Sachs predicts it could hit $200 barrel within the next 6 months to 2 years. This could translate into a $6-$7 per gallon gas.
Source (MarketWatch )
In a New York Times editorial, Ben Stein paints a very bleak picture. Conjuring up images of 6000 pound SUVs being used to chauffeur 100 pound teenagers, and the apocalyptic chaos of Mad Max movies, he writes “the prognosis for gasoline is grim in the long run.”
He points out that 2/3 of U.S. gas is imported and mostly from countries whose governments and people don’t like us, and asks what will happen, for example, if Venezuela decided to stop sending us oil.
Further, the threat of peak oil and the likelihood we are already there is put forth. Equally dismal is how woefully ill-prepared he feels the country will be to handle rapidly diminishing supplies.
He tells us we have become deeply and inextricably dependent on oil, and that if nothing is done about it, the future is terrifying.
His solution. Turn coal into oil, build nuclear plants, drill everywhere and “brush aside the concerns of the beautiful people who live on coastal pastures.”
I agree the situation is an emergency and drastic measures are needed, but Mr.Stein forgot to mention one obvious thing. Build and drive electric vehicles. And then very well, not only might the Volt save GM, but it may go along way to help save this country.
Source (New York Times )




