“We have entered the post-oil era”

Quote from French Prime Minister says it all. Mark your calendars: September 1, 2005.

4 Responses to ““We have entered the post-oil era””

  1. rae Says:

    I notice that the “crazy high” $2.38 a gallon gasoline price mentioned in the futures market is about 2/3 what we are paying. There are 3.785 litres in a US gallon, and right now the Canadian dollar is at 83 cents, so $2.38/0.83 = $2.87 a US gallon, which is 75.8 cents a litre.

    Checking TorontoGasPrices.com, the current popular lowest price out here in the east end is $1.23.9, so that futures price is only 62% of my current price. Is there a handy web page that gives all the details about why US prices are so much lower? Is it all taxes? Does the US not pay tax on gas or something?

  2. jok Says:

    Well our oil companies were kind enough to raise the retail price as soon as the futures went up. The U.S. stations generally waited until they received shipments at a higher price at the stations themselves, as the price now is up to about $3.50/gallon in the U.S. It was $6/gallon in a few places near Atlanta GA. last week. That’s roughly $1.05/L & $1.91/L respectively. On the brighter side, some of these prognosticators say we should be back down to $1/L in a month or so, because despite my short-term gains on oil-company stocks, I know the truckers are being slaughtered at $1000/tank to fill their rigs, which will ruin the economy, which is why there’s a world-wide effort to mitigate the energy crunch, I suppose. Anyway, the $100 billion disaster in New Orleans is just starting to ripple through the economy, everything from fruits to laundry detergent should be a bit more expensive in days. Next year expect your insurance bills to be quite a bit higher. [Political commentary inappropriate to techtok on $.5 trillion spent on Iraq and lack of scientific insight into hurricanes deleted by jok Sep-14-2005. TIME magazine is doing a better job with this topic]

    Airports across the southeast could be out of jet fuel in days, the anarchy and heat in New Orleans threaten the Bell South switching system in downtown New Orleans which could knock out phone service across the south. I10 is out, US90 is out, an area bigger than the UK has been wiped out.

    Also, for a short while some oil company stopped shipping gasoline to Prince Edward Island, which buckled to the pressure from the oil companies and agreed to bypass their price regulation legislation and increase prices there to $1.35/L:

    ..which means I paid $150 less by taking my PEI vacation earlier in the summer despite my earlier post about the high prices we paid on that trip.

    Yesterday and today on the highways there seemed to be about 1/2 to 1/3rd the usual traffic, however the St. Jacobs farmer’s market in Waterloo was as busy as usual, I guess.

    People will be pressured economically on all sides shortly, natural gas in the winter being the next pinch after food & groceries.

    I personally believe this is our last chance to electrify commuter rail and a rail corridor to some east coast port, begin solar power installations in earnest and think about a replacement for natural gas heating and similar concerns, before as a society we go broke. For a few people, this season anyway, bankruptcy is the next step, and I know a couple rural Ontarians in that position. I think that if we don’t pay attention to the signs on every corner now, bankruptcy will be the least of everyone’s worries. Blaming the victim is wearing very thin, and with the coverage out of New Orleans, very very thin indeed.


  3. jok Says:

    References for previous comments:
    etc. etc. etc.

  4. Guilin Tour Says:

    That Sounds interesting, I agree with you.Please keep at your good work, I would come back often.*

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