At the start of a week when fuel protestors threaten to bring the streets of Manchester to a grinding halt - local accountants say the increases are inevitable.
We all know that the price of oil has soared, and other energy sources such as gas and electricity prices have also rocketed. Yes the Government could reduce the tax on fuel, or take measures to boost availablity and hence reduce prices - however these measures can only give temporary respite. I can understand the fuel protestors’ frustration, but they might as well try to hold back the tide!
The fact is that there is a fixed quantity of fossil fuel in the Earth and an ever growing rate of use (or
depletion). The laws of supply and demand must come into operation……….. prices will go skywards. It is absolutely inevitable that fuel prices will rise, and what we have seen so far is merely the beginning!
The ever growing rate of usage has spurted in recent years with the economic growth of countries such as China and India. In 1990 the OECD countries (which represent the Worlds richest nations) consumed 57% of the World’s energy usage. Today this has been turned on its head, Russia, China and India together with other Far Eastern developing countries now consume more oil than the USA. China’s oil consumption is growing at 7.5% per annum and India’s grows at 5.5%. By 2025 the World’s demand for oil is predicted to be 60% higher than it is today.
The Chinese plan to build 36 power stations in the next 12 months? There is rapid growth in car production
and ownership in China. If everyone in China had the same car ownership ratio as the USA has, the World would use a ridiculous amount of oil each day - approaching what it currently uses in a whole year!.
Obviously that is not going to happen; its an impossibility.
Currently 10 oil rich countries - Saudi Arabia, Iran, Iraq, Kuwait, the UAE, Venezuela, Russia, Libya,
Kazakhstan and Nigeria control 82% of the World’s oil reserves and 3 - Russia, Iran and Qatar hold 56% of the World’s natural gas reserves. (These are ‘proven’ resouces, there will of course be undiscovered resources - but these are dwindling.)
What is the value of a crystal ball? Knowledge of the future is valuable for business owners and investors. This could for example mean taking advantage of fixed priced fuel contracts, investing in fuel efficient machinery or choosing good stock market investments.
- Energy prices are going to continue to soar, no doubt about it.
- The ‘economic’ or monetary value of the resources held within just those handful of countries is mind blowing. At current prices the annual oil revenues are over $970 billion, and of course as prices rise this will increase.
- As fossil fuel prices rise, so the benefits of ‘fuel efficient’ technolgy and renewable energy sources become increasingly economically viable.
June 14th, 2008 at 10:14 pm
Stop being so short sighted.
Why keep bleeting on about car drivers, the cost per barrel and the diminishing reserves.
My old 1976 cortina averages 41mpg. My 2003 Almera cant even achieve this. So lets start with the maufactures. They have the technology so that no car these days should do less than 60mpg at least!!!!
Why is the driving age still 17. At school children think about getting their driving lessons more than a career. They burden their families for a car, waste hundreds in fuel and build social circlesover several counties then become dependant on thier cars no matter what the cost
Raise the driving age to 21. Most peole at 21 understand money better and their social lives are usually around their local area. At that age they probaly have a job or career and a lot would decie not to buy a car…mostly becausse they realise they cant afford one and dont really need one by then.
We all know the manufacturers have hidden technology so that cars could produce at least double the mpg that they do now. Why doesn’t it happen?…because the oil companies want to sell more fuel and the government want more tax
All in all we all pay highly in the shops let alone for our cars for high fuel prices.
Lastly, why keep bleeting on about petrol. We have the technology to replace the petrol engine and what ever replaced it would be equally highly taxed for some ludicruos reason.
Vote out the stale idiots in our government and lets have some fresh blood who can see common sense.
But we are British, we sit at home ,moan about it, do nothing to help and go and pay the high prices at the pumpms
We are our own worst enemy
July 3rd, 2008 at 3:23 pm
The solution is quite simple and by way of a 3 point plan.
Point 1, Reduce fuel duty now and not by 2p a litre but by something like 50p per litre at least. Yes I know you will now all be saying so where will we get the money for the Heath Service etc, what we do is stop paying lazy good for nothings to sit around all day. Fair enough some people a really unable to work but a hell of a lot just don’t want to. Those people who now work will also pay tax (more revenue).
Point 2, Re-sit your driving test every 5 years and if you don’t pass you don’t drive. This will reduce the number of cars on the road (what the government wants) and the people it gets rid of are the worst drivers (good for road safety). That sounds like win win to me.
Point 3 Stop paying billions of pounds a year in aid to foreign countries (some of whom are the very ones who are putting oil prices up). Let people sort their on problems out, after all we have to.