Gas price back up, Oil price back down.

So climate change is real and there is a “90 percent probability that human activities over the past 250 years have warmed our planet.

The industrial activities that our modern civilization depends upon have raised atmospheric carbon dioxide levels [and] the rate of increase in global warming due to these gases is very likely to be unprecedented within the past 10,000 years or more”, if you believe NASA.

So why does that matter?

The worldwide price of oil still low at $48.50/barrel and on the decline, local gas prices have crept back up from $0.95/L to $1.05 in the last week; it seems like somebody is making profits. We may explore who in a later post.

The ripple effects through the economy really highlight our dependence upon oil. Personally I am a big fan of Tesla and hope to own of his electric automobiles one day. As MarketWatch reports:

“Maybe people are still going to line up to pay $70,000 for one of his fancy new battery-powered Tesla S models. But it was a lot easier to sell the concept when gasoline was $3.70 a gallon than it is at $2.25…According to data compiled by Edmunds, the automobile market research company, sales of light trucks and other “gas guzzlers” … are suddenly booming again. And sales of hybrids, electrics and other fuel-efficient vehicles have suddenly, er, tanked…already U.S. car buyers are shunning fuel-efficient vehicles and buying themselves a new SUV. When enough do that, gasoline consumption goes back up, and so do prices”.

Good thing Tesla makes a very good automobile.

Here in Canada, the lower price of oil has serious consequences for what is now Canada’s largest economic generator, tar sands. Already, “already, top Canadian player Suncor, .. has cut $1 billion from its budget and is slashing 1000 jobs”.

Discussions with a student at Camosun tonight had him wager that oil would stay below $80 per barrel for the next six years.

What would that do to Cenovus, Tesla, the Canadian economy and the human part of the human caused climate change? Does it matter? How will alternative energy and renewable energy industries react?

Works Cited

Arends, B. (2015, January 02). Can Tesla survive collapsing oil prices? Retrieved from MarketWatch.com: http://www.marketwatch.com/story/can-tesla-survive-collapsing-gas-prices-2014-12-31

French, C. (2015, February 03). Time to panic? Layoffs loom large in Canada’s oil patch: survey. Retrieved from Yahoo: https://ca.finance.yahoo.com/blogs/balance-sheet/layoffs-loom-on-oil-patch-but-not-panic-yet-165924793.html

Gasbuddy.com. (2015, Feb 04). Downtown. Retrieved from http://www.victoriagasprices.com: http://www.victoriagasprices.com/index.aspx?site=Victoria&area=Victoria%20-%20Downtown

NASA. (2014). Nasa. Retrieved from Causes: http://climate.nasa.gov/causes/

Reuters. (2015, Feb 04). Energy. Retrieved from CNBC: http://www.cnbc.com/id/102394676#.

 

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