Sustainable Energy Transitioner

After years of our economy ignoring the increasing price of oil, 2008 has become the year of change. Not only are fuel-inefficient airlines going bankrupt, but surviving ones are reducing their flight schedules and raising fees on basic services like checked bags. Automakers such as Ford and GM that depended on big vehicles to make their profits are cutting back production and lowering their expected profits (Aside: it’s too bad they weren’t listening to those of us calling for them to produce more efficient vehicles these past several years – instead of dismissing us as annoying they could have recognized the profitability of our better understanding of the world oil market…). The price of small used cars is climbing, while SUVs wait in lots falling in price as the fuel costs shoot upward. And the pump price of gasoline approaches $3.90 nationwide while diesel clocks in over $4.65!

People throughout the country are cutting back on driving, with March 2008 showing the biggest year-on-year reduction in miles driven since the Federal Highway Administration began reporting the numbers in 1942, at 4.3% or down 11 billion miles.

Other fossil fuel prices are rising on the back of $130+ oil. Coal hit new records last week trading more than $165 per ton (t) in European ports and more than $120/t in Richards Bay South Africa and $112 in China. Meanwhile US natural gas approaches $12 per million Btu, the highest price since the wake of Katrina. Coming months may bring even higher prices of these fuels as June weather drives up demand for cooling in the Northern Hemisphere and heating in the Southern Hemisphere. Meanwhile, the cost of wind and solar power stays flat – making them more and more attractive as energy providers of the future.

These can be tough times for people who didn’t factor in the possibility of higher fuel prices, but luckily many options exist to address these difficulties – from switching to more efficient cars to increased carpooling to bicycling to services like Netflix to increases in telecommuting. America has the tools to lower its dependence on 12 million barrels per day of foreign oil and slow the ascent of fuel prices. I’m glad to see we are finally starting to use them in 2008.