Oil, what is it good for?

th3midnighter

Shared on Fri, 06/27/2008 - 10:35

 

Am I the only one that thinks that the price of Oil going up is a good thing? 

I realize short term, it creates some stress for the middle to lower class because its more expensive to go to the cottage, to do that vacation, to drive to work but I think the long term effects of this phenomenon is being missed or at least ignored by the vast majority of people.  Oil is by far the most resourceful commodity we have right now.  Oil is a key ingredient in plastics, rubber, pharmaceuticals, cement, electronics, clothing, and on and on.  So we have this product that can be molded, melted, sculpted to create many of our every day products and yet we use like 90% of oil to burn as fuel.  That just seems incredibly wasteful and short sighted.

 We waste oil so freely and have been doing it for over a hundred years and finally the price of Oil is at a point where we are starting to question our daily habits and rituals.  In a single year, the price of Oil has done what countless Gov’t policies, commercials, documentaries, books, and environmentalists couldn’t do.  Make the consumer rethink and re-evaluate how they travel, work and live.  For the first time, I heard my dad say “I think I’m going to bike to the corner store.”  The man hasn’t ridden a bike in over 20 years.  For the first time since the early 90s, a pick up truck isn’t the best selling vehicle in the states.  The incredibly fuel efficient Honda Civic was the best selling car in May.  GM just announced that they are closing one of their bigger plants near Toronto that used to make pick up trucks because people are moving towards smaller sedans.  Toyota and Honda both have announced fully electric cars to be released in Japan by 09, and most likely in the North American market a year or two after that. 

 All of these changes in the market have nothing to do with a shift by the consumer to be more environmentally conscious cause lets be honest, most of us don’t give a shit about the environment.  We care about our comforts and maintaining our lifestyle.  The minute our lifestyle becomes too expensive for our budget, that’s when we force the market to change.  This shift is going to force governments to invest in more public transit, its going to force Auto companies to make their cars as oil free as they can and it’s going to force the consumer to use less gas, whether it be for our car or for our home.  So from my point of view, I hope the price of Oil keeps going up, up, up.  Over $200 a barrel would be perfect.  It’s been too cheap for far too long and we really need to wean ourselves off it and God knows, we aren’t going to do it for the drowning Polar Bears.

Comments

SixTGunR's picture
Submitted by SixTGunR on Fri, 06/27/2008 - 11:52
I just wish I had stock in Exxon and BP... :-)
Caesar's picture
Submitted by Caesar on Fri, 06/27/2008 - 12:55
yeah to bad 60% of the U.S. makes an avg of 28 k a yr thats a hard hit for most of america
ekattan's picture
Submitted by ekattan on Fri, 06/27/2008 - 10:40
Oil is not only about cars. Oil raises costs on food products, energy, plastics, steel, etc.. It really affects your wallet. It may not sting your wallet as much as people in underdeveloped countries which have their pennies counted.
th3midnighter's picture
Submitted by th3midnighter on Fri, 06/27/2008 - 10:52
Oh I know Ekattan. It affects the price of construction, food, clothing, everything really. But my point is we need to wean ourselves off it and as far as I've seen, this huge increase in price has been the best deterrent so far.
Automan21k's picture
Submitted by Automan21k on Fri, 06/27/2008 - 11:04
I'm backing you Midnighter. My wife and I have been pricing CNG conversions for our Sante Fe. and people seem so quick to blame the oil producing countries, but it is the crashing value of the dollar that is putting the serious hurt on at the pumps. So I say bring on the recession, the value of the dollar will rise, inflation will slow or stop, and gas prices will level out. no recession = Stagflation, way to complex of a term to explain here, so look it up on your own...but it's bad...like 13-19% interest rates bad(for the U.S. atleast, I don't know what would happen in Canada).
Caesar's picture
Submitted by Caesar on Fri, 06/27/2008 - 11:07
shingels for roofs are going up to, that is made out of petroleum, they were 55 bucks a square now there going to be about 150 a square in michigan anyway,. and they are charging gas sur charges, so the cost to get your roof done is going to triple within the next month, its affecting everyone and everything not just driving
TANK's picture
Submitted by TANK on Fri, 06/27/2008 - 11:13
My wife was saying that just last night that she thinks it's a good thing because people are driving less, being more efficient with how they drive and where as well as are converting to smaller more efficient cars. In those respects, yes it's a good thing. BUT in terms of the overall economy, it's extremely bad. The price of everything is going up. So instead of just being more efficient with driving to save money to compensate for oil, now everything is more expensive becuase just about everything needs oil to run. Anything that is made in a factory is basically going up because oil is used either in the products or to keep the machines running. Combine that with the stuff going on with crops due to natural disasters and now food prices are going up even more because of the smaller supply of food and the increase in oil to produce it. So in a small minded view of just driving ya i guess it's a good thing. Less driving is less oil consumption is less pollution is less people on the road. But in the grand scheme of things, this is extremely bad.
th3midnighter's picture
Submitted by th3midnighter on Fri, 06/27/2008 - 11:23
Necessity is the mother of invention. We are facing a situation where everything we rely on is dependent on 1 resource. My point isnt to focus on just the transportation side of things. I should've done a better job explaining that. My point is that this will lead to other changes, new resources being invested in and developed and hopefully, a cleaner Planet will be the beneficiary of it all.
Automan21k's picture
Submitted by Automan21k on Fri, 06/27/2008 - 11:28
If we use less gas though, it increases supply, reduces demand, and prices drop on all of those things that are currently getting more expensive. Great discussion inspiring post, midnighter.
Caesar's picture
Submitted by Caesar on Fri, 06/27/2008 - 11:34
yeah but here is the thing, everything is going to go up, food at the stores, restaurants all there food comes in on trucks. so while the general public reduces there carbon footprint it isnt helping that much, i mean in a small way, but think of this, were getting hit at the pump right, and now, food, and everything else goes up on top of that. so to a certain degree yes i agree people are being smarter because they are forced to, but really i wish we had alternate fuel, bus's and semi's because there driving the cost of everything else up.
th3midnighter's picture
Submitted by th3midnighter on Fri, 06/27/2008 - 11:39
Caesar, what will happen is that for a while, everything will be more expensive, and companies will see an opening in the market for an alternative fuel source. The public will demand something to replace Oil, and with a motivated consumer market, you'll see all kinds of options. From biofuel to hydrogen to electricity. Change is a comin, we just have to ride out the down cycle while it takes its sweet time gettin here.

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