It's just one in a laundry list of factors, but more fuel-efficient cars could make a difference in lowering oil prices dramatically to half their present levels, plunging to $50 a barrel by the end of the year. That's what Gulf Oil CEO Joe Petrowski is predicting in a new interview on CNBC's Squawk Box, though he is quick to point out that a halving of oil prices doesn't necessarily translate to a halving of fuel prices. And, as CNN reports, lower oil prices could mean protests in oil-producing
While it's certainly possible to run automobiles on natural gas instead of gasoline (see the Civic GX), there is a decided lack of natural gas vehicles in the U.S. This might become a problem that needs solving, quick, if an analysis in Ground Report turns out to be accurate. The fear? That the price of oil will plummet from its current price of around $70-$75 to $30.
Remember all the bravado that Bob Lutz unleashed when we got our first glimpse of the Volt back in early 2007? Lutz has been the car's biggest champion since then, but he's thinking that there could be some tough news coming soon for this kind of technology. While the Volt is not named in an interview with Lutz by the LA Times that was published last week (so don't go starting any rumors), Lutz was pretty clear-eyed about what the recent dip in gas prices could mean: "We may hate high fuel price
Photo by Jurek D. Licensed under Creative Commons license 2.0.
In conjunction with other measures to protect the U.S. from crude oil price shocks such as promoting alternative fuel research and production, President Bush has announced an expansion of the U.S. Strategic Petroleum Reserves. The reserves, which were established in 1975 following the Arab oil embargo, are assets designed to limit the effects of severe supply disruption.
It seems that Australian petrol prices are even more volatile than I imagined. Just a week after predictions that petrol prices were likely to remain high during 2007, prices are now tipped to fall by as much as 10 cents a litre (US$0.30 per gallon) after world oil prices dropped to a 19-month low. Oil prices are now a third less, at US$54 a barrel, than their record last July of US$78.40 leading to lower fuel prices for vehicles and jet planes.