As the global financial markets come crashing down all around us, something else is falling with them. The price of a barrel of oil just passed its lowest price in over a year. As I write this, the national average cost per gallon of regular unleaded is $3.35, down from a whopping $4.11 in mid-July 2008. According to CNN, experts are predicting $60/barrel oil in the coming year, which should make gasoline about $2/gal in 2009.
Maybe by next summer it will be time to bring your 600 horsepower turbo cars out of storage.
on October 11, 2008 at 4:55 pm Gabe Cody wrote:
If we can keep gas prices low we will never need any alternatives (electric, hydrogen, biofuels, etc.).
on October 12, 2008 at 1:20 am Chris wrote:
On the contrary, I think we need these alternatives. They aren’t cool right now because in terms of energy density they don’t hold a candle to the age-old internal combustion engine burning petroleum, but expect that to change when electrical energy storage catches up. I like heat engines as much as the next guy — probably more — but like all technology it’s going to be improved upon eventually.
on October 12, 2008 at 7:20 pm Gabe Cody wrote:
I was being facetious. The search for alternatives will dry up if gas prices get much below $3.00 and we will forever be reliant on gasoline again (until another disruption in the system). Gas prices need to remain high enough to keep the research going or we will forever be at the mercy of the market (our enemies, hurricanes and the like).
on October 13, 2008 at 10:43 am Chris wrote:
It can be hard to tell in text.
I completely agree. The strongest motivator for alternative transportation is high gas prices. Electric anything is at an extreme disadvantage in power storage ability (kWh/lb). Eventually, the gap will be closed, but in the meantime high gas prices have incentivized the switch.
It is my hope that $4/gal shock is not forgotten by consumers or regarded as temporary when $2/gal gas arrives again. Consumers vote with their wallets, and they need to keep voting for efficient transportation.
on October 13, 2008 at 1:13 pm Gabe Cody wrote:
If gas hits $2/gal again SUV sales will boom and the “Big 3″ will be be profitable and alternative research money will dry up almost immediately. Consumers forget nearly instantly. Always have, always will.