Them vs Me
Moving beyond fossil fuel
Divid Moll & Paul Jones
Issue date: 5/16/05 Section: Op/Ed
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David Moll
The global demand for energy has been growing steadily for the last 30 years, yet Americans have long enjoyed comparatively low gas prices and energy costs.
Until now.
Ever so often, the prices of a given commodity will rapidly increase, fluctuate a bit and then settle at a new, higher price that reflects the commodity's true value.
Economists call it a "market correction."
In the last 18 months, the price of oil has doubled, despite the Saudis pumping at full capacity. Brent crude - drawn from the North Atlantic and a relatively minor player in the global oil supply - has eclipsed the $50-per-barrel mark. These inflated prices have directly translated into a sustained increase in the price paid at the gas station. And there is no sign that prices will drop in the foreseeable future.
And as the increase in gas prices is passed onto the consumer in the form of higher freight charges, nearly every product that is dependent on transportation will become more expensive unless action is taken.
Not only must we find alternative forms of energy, we must make our current energy systems as efficient as possible. Since fuel-cell powered electric vehicles will not be market-ready for at least 10 more years, we must free up additional petroleum resources for use in the transportation market.
In 2003, America imported two-thirds of the oil it consumed. That year, the home heating oil market consumed over a third of the oil used nationwide.
While it is impossible to refine home heating oil into petrol fit for use in automobiles, the home heating oil market is a ripe target for economizing. Throughout the U.S., there are still a significant number of homes that have no insulation or energy conservation systems. Through the use of modern insulation systems, household energy consumption could effectively be reduced by well over half.
By reducing the consumption of oil for home heating, an additional 75,000 barrels per month could be liberated for use in the transportation market.
The global demand for energy has been growing steadily for the last 30 years, yet Americans have long enjoyed comparatively low gas prices and energy costs.
Until now.
Ever so often, the prices of a given commodity will rapidly increase, fluctuate a bit and then settle at a new, higher price that reflects the commodity's true value.
Economists call it a "market correction."
In the last 18 months, the price of oil has doubled, despite the Saudis pumping at full capacity. Brent crude - drawn from the North Atlantic and a relatively minor player in the global oil supply - has eclipsed the $50-per-barrel mark. These inflated prices have directly translated into a sustained increase in the price paid at the gas station. And there is no sign that prices will drop in the foreseeable future.
And as the increase in gas prices is passed onto the consumer in the form of higher freight charges, nearly every product that is dependent on transportation will become more expensive unless action is taken.
Not only must we find alternative forms of energy, we must make our current energy systems as efficient as possible. Since fuel-cell powered electric vehicles will not be market-ready for at least 10 more years, we must free up additional petroleum resources for use in the transportation market.
In 2003, America imported two-thirds of the oil it consumed. That year, the home heating oil market consumed over a third of the oil used nationwide.
While it is impossible to refine home heating oil into petrol fit for use in automobiles, the home heating oil market is a ripe target for economizing. Throughout the U.S., there are still a significant number of homes that have no insulation or energy conservation systems. Through the use of modern insulation systems, household energy consumption could effectively be reduced by well over half.
By reducing the consumption of oil for home heating, an additional 75,000 barrels per month could be liberated for use in the transportation market.