It was only seven months ago we were paying $4 per gallon at the pump. Policy makers, business leaders and the general public seemed anxious to find sustainable solutions to the growing global demand for fossil fuels. However, the recent unprecedented global recession and credit crisis resulted in falling oil prices. The price of a barrel went from $147 to about $54. As a result, according to an article in the Wall Street Journal today, energy companies are postponing energy research projects that could help alleviate an energy crisis over the next few years. Once the global economy recovers, the demand for energy will soar once again, and so will gas prices.
What do you think can be done right now to prevent or minimize the economic effect of the next energy crisis? What are some steps that communities, businesses and policy makers can take today that may help keep the cost of energy down once the global economy recovers?
Tags: energy policy, Energy prices
Correct me if I am wrong, but during this economic crisis, haven’t the oil companies continued to show RECORD PROFITS??!! I’m sorry but if they are crying lack of funds for research and development and production projects, given what our previous chapter covered, they need to reasses the competency of their financial management team. I feel this industry sees us as nothing more than puppets in their little production, forced into panic through manipulative threats that go hand in hand with the fear mongering prevalent in today’s journalism.
It’s time for someone to step up and ask, Why not reduce profit in order to sustain R&D projects and production? Remove the greed and it seems like a simple equation to me.
We as individuals can send a message through continued conservation efforts and support of alternative energy interests. Demonstrate to this entity we will be controlled no longer by their self serving interests, hit them where it matters to them…their wallets.
I would like to think that the feul prices will remain similar to what they are now, or at least won’t exceed three dollars per gallon. Gasoline prices have been slowly increasing over the last 2 months while crude oil prices have stabilized and refiner margins have recovered from their recent near-historic lows. Obviously the economic downturn is the direct result of the decline in demand for feul. Hopefully, with the continuous record breaking profits from these oil companies, when the market recovers, we will find a way to continue the trend of “lower” gas prices. People in America are so screwed financially that they would not be able to afford a significant increase anyway. The middle class is in big trouble and they are essentially at the mercy of things like oil companies. This is also why they shold not tax gasoline anymore!!!
There’s really nothing we can do as a whole to prevent another energy crisis. A situation like that is basically out of our control. The global economy crisis and the energy crisis are both on opposite sides of the scale. If one improves, the other will descend and vice versa. We can either have a stable economy and get screwed at the gas stations, or make less money and pay less for gas. It doesn’t really make any difference.
The way to stop or minimize the economic effects of the next energy crisis is to get our dependency off foreign oil, and to use domestic oil that we have not foreign oil. We have huge amounts of oil shale in the west, that reserve is more than Saudi Arabia has. We have large reserves in Alaska that we could use if the politicians, and the environmental whacks, allowed it. These two options can be used for the short coming until we get an alternate source of energy which will probably not occur for a few more years, but if we can use domestic oil, and not use foreign oil, majority from the middle east, we will not be funding countries that support terrorist organizations, and we will be a lot safer in this country. It would be great if one day we could wake up and we weren’t using petroleum to run our vehicles, heat our homes, or make plastics, but reality is that we currently need oil, but there are things that can be done to minimize the use of it. Building more efficient vehicles, and buildings will make everyone that does it use less energy meaning less money people have to spend which will mean a stronger economy. The downside for the government is if everyone starts conserving and saving money, the government will have less money coming in, so that means they will want to raise the price of fuel, and other products, which will make people have less money, and then were in the same situation again with the economy, and everything. The government should just keep their fingers out of everything, because every time they do something it screws up somehow.
Once the global economy recovers, i think that the prices will probably go down or it could stay the same. I would agree that if we actually could start using non foriegn oil and go to the west then it would be alot easier and safe. If the economy gets better i believe the oil prices shall go down…hopefully. Than people would have a little more money to live off of and the economy will get much better.
Once the economy recovers (which i don’t see happening in the near future) I’m hoping they will go down if not at least stay the same. I feel like gas prices change because of what the gas company wants. In town we have two gas stations and one will be $1.99 while the other will be $2.10…I don’t see why the gas prices can’t stay in one price range. I do agree we need to lessen our dependency on foreign oil and think maybe we should start using different resources in the future. A simple diesel engine can run on veggie oil. Diesel and veggie oil may be more expensive, but it lasts longer and will save you in the long run. All in all, i think money is the issue of why people are complaining about gas prices. People just don’t have the money they used to due to job cuts, but this will allow people to learn where there priorities are. Instead of going out shopping people need to put their money aside for what they really need.
The truth that every person on this planet is going to have to face soon is that we are not going to have oil as an energy source for much longer. We MUST continue researching alternate forms of energy, because soon the price of oil isn’t going to matter anymore. If something isn’t done soon, the remaining oil will literally be fought over, and once it’s all gone then what will we have? the answer is a worldwide economic crisis even worse than what’s going on now, and in addition to that, an energy crisis larger than any suffered before.
As a student in the Culinary Arts field I always hear from my teachers that one small thing we can do to help minimize the economic effect of the next energy crisis is to buy our food and goods from local farmers. By doing this we get the best food that our region offers without using the gas and oil it would take to service the vehicles to transport the food grown out of state or country. This is the “green” way of thinking because it help out the environment as well as cutting back on costs. By thinking this way and teching others this method we can make a difference.
Our consumption of oil is becoming increasingly greater and greater. As this occurs, of course, our supply of oil is becoming substantially less and less. The current low gas prices fit right in with the problems we are having with our economy. Even though most Americans have already felt a dent in their wallets from the repression, oil remains more than just a want; it’s a need. The supply of oil is slowly depleting, and we keep spending. Once the economy is boosted back up, there will be a great shortage that could result in the gas prices escalating even higher than they were previously. I think the most obvious solution to this growing problem is CONSERVE. People need to start carpooling more often, lowering the heat in their homes, and to just make sure they’re not over-indulging. Also, those energy research projects that are being postponed also need to be given a second chance, seeing as they’re what could potentially prevent an energy crisis in the near or distant future.
Does anyone remember when oil and gas were at the right price to purchase? I do! In 2003 living was meant to be. Prices were right, oil was great, everything was cheap, the last best change that I remember was in 2008, when gas prices were going down and also oil prices. That was because foreign countries that were selling the U.S. all these goods decided to make it cheaper for us to buy. In 2008, because of GM new invention the “Hybrid” cars, they made it easier for people to use less gas and oil. But then a sudden change, the government should make people conserve and save more money, but if that happens then the governor won’t have as much money pilling in, which will make it hard for us in the long run because then the governor would want to increase prices.
The best way to least lessen the impact of another price increase in gas would be is to learn to conserve. We cannot depend on our government to be on our side. I am old enough to remember the gas criseses of the 70’s. Long gas lines and only being able to get gas on odd and even days depending on your license plate number. We’ve had 30 years to build the refineries needed, to produce alternative energy, and better cars. But nooooooo. They need for us to be sheep and depend on them. A perfect example of the deceipt is in the capacity of our country’s oil reserves. Bush used quite alot when we had the high prices and now that the price is low my question is this. Why are they not filling the reserves back to the former maximum levels?
I think that our country still needs to concentrate on the future. We can not depend on gasoline fueling our cars forever. 1) There is only a limited supply of gasoline, eventually its going to run out, which is going to make gas prices soar even further up. 2) Our environment is slowly diminishing because all the pollution we are creating. Eventually if we don’t find an alternative fuel we are going to see more of an increase in natural disasters. I think that if one of these car companies such as GM that is slowly going bankrupt came up with an affordable, energy efficient car they would no longer be in the situation that they are in. These car companies keep begging the government to bail them out of debt, however they never took responsibility for the reason that they are in debt. Many American’s are looking in the future and realizing that they can’t drive a gas guzzler, especially after gas prices soared to about 4 dollars a gallon in summer 08′. I think that we need to start concentrating on not only making the economy better but making better decisions regarding the environment.
I believe that we must find other investors to keep funding our research for alternate ways to fuel our cars. If we postpone researching new ways to find alternate energies we are putting our future at risk because we don’t know when another economic or natural crisis occurs and then we may start running out of oil sooner than we thought. We need to conserve our gas right now and try to use less vehicles that suck up gas at a higher rate making our gas reserves diminish quicker. Public transportation should become a major benefactor in this situation because it conserves gas and allows less traffic on the road. Also people should start driving one car and not having multiple cars that take up too much gas. When the economy comes back and the gasoline rises public transportation should advertise the idea of conserving because it will help allow more people to start thinking of the future and our oil reserves.
the fuel prices are going up once again to make us pay more than what we paid for when it was under $2 and now most of the places ive seen are now over $2 for regular gas. other transportation fairs will go up in cost once again when the gas rises in order for them to keep the buses or other things going. If you think of it just the cost of food will go up when the gas prices rise again.
i think that the best way to show the oil companys that we arnt in demand for their fuel is if everyone for one day dosent use any. just think on how much we would save just for that one day, and it would slow down the demand so the price would lower and subside with what it should be.
Okay now this is a topic I love. I think it is insane the price of fuel as we all do. This is where a ton of our economic stimulus should go. Into the research and realization of ways to better our energy problems. I have a quick and easy solution but first here is my side. Last year I drove thousands of miles. I spent literally about 5 thousand dollars at least on gas for my truck. If only I had saved up if I knew this would happened I would’ve bought a foreign car such as Honda or better yet, Nissan. I think the stimulus could help us all. Do you realize how many gas guzzlers are out there?! that get about 16 mpg? I think the U.S could easily work out a deal with foreign automakers to buy in bulk, that would keep them busy for a long time. In doing this, we could get a good deal on cars like Nissan. If only we could somehow put cars such as a Nissan Sentra in the hands of EVERY American that drives, and be put on some type of plan to pay it back or raise taxes and do it that way as is what an economic stimulus plan is. Doing that alone, the percentage of gasoline that cars use would drop incredibly. A Ford truck getting 15mpg traded in for a Nissan truck that gets 25+? Imagine how much less fuel we’d need. How much money we’d save. With all the billions and trillions out there we could make something like this happen. But my other idea is, look at England. Cars are somewhat rare, a luxury over there. Why? Because of their damn transportation system. You can get anywhere on their busses. They have so many that you will have virtually no problem getting anywhere. Also their cities are well designed in which many things are walking distance. Personally I think the luxuries of things like HDTV’s and all these cars, etc, have made us all lazy. I am one of them. “AW I have to get up to change the TV?!?!?!?!” that is a reason we are turning so obese. a huge reason. I think as much as I and everyone else LOVE having our own cars, imagine if we had a round the clock bus system everywhere? it would employ lots of drivers, workers to keep up all the bus’ roads and highways. None of us would have to pay for gasoline except the gas used by the buses, covered by our taxes, and just pay a small fee such as 1.50 to go somewhere, if even that much. None of us would have to pay rediculous insurance, less accidents, no drunk driving, no car payments, etc. As great as having our own cars are, imagine a world with no gas fee’s no insurance fee’s no car payments, extreme decline in accidents/drunk driving…
Some things that can be done about the next energy crisis because gas prices are likely to higher once summer hits is finding new was of transportation to get to where people need to go. I’m sure there are lots of people who work and go to school that’s not in any kind of walking or biking distance. I know that’s a lot but if gas was about $4ish dollars last summer, it can only go higher. I’ve been going to this one gas station that been under $2 for a while so until that changes I’m going be using my car. this could be a great way for people to be forced to get exercise. If you really think about it, there are plenty of bikers out there who bike 30 plus miles to go to school or work. It works for them and maybe it can work for us. Maybe public transportation should expand and perhaps lower prices. That is asking for a lot but times like these what really can we do. i know the mbta has been going up and down with their prices because they’ve been in debt, but people are still riding the T because they have no other way.
There is no way to accuratley no what is going to happen to gas prices once the economy recovers. There is a possibility that once the people begin to have more money and the demand for oil begins to increase the price of oil will most likley rise.
The government needs to either cut into are supply which would be a brig help or they need to take some of that bailout money and invest it into companies building hybrids and electirc cars. Also they need to invest in better alternatives to get us away from oil. If this way going on then at the same time people could make an attemp to not use so much fuel but it wouldnt be so easy because thats what we no.
I feel that once demand increases as the economy recovers, price and supply will also increase. Demand will be higher when economy recovers and then eventually output supply will increase which will lead to the prices going up initially until it evens out.
“Energy companies are postponing energy research projects that could help alleviate an energy crisis over the next few years. Once the global economy recovers, the demand for energy will soar once again, and so will gas prices.” This statement is exactly the kind of propaganda that allows these energy companies to profit without any consequence. It is one thing to make money but for these companies to actually purposely postpone projects that could not only help with the energy crisis, but also the global economy is absolutely absurd. I believe that the appropriate people that are in power and can put certain laws into affect should step in by setting sanctions towards these companies. This could help prevent these companies from profiting to the point where the consumer is being affected adversely. Not only that but, if we can prevent these companies from holding back on these energy research projects than we can further the progress necessary to bring energy costs down.