A respected investment banker with close ties to the oil field, has predicted that over-stated reserves and increasing demand will drive the price of oil over the coming years to $500 per barrel.
In a September 22nd, 2008 article on CNNMoney.com, Matt Simmons predicts that increased demand for oil from China and India, as well as continued US and European Union usage, will soon outstrip supply.On top of that, Simmons contends that “proven oil reserves”, which is the measure of how much oil is still left to be exploited, are vastly over-rated.If true, this will clearly have a major effect on prices.
Simmons cannot be dismissed as a gloom and doom flake.He actually helped edit President Bush’s energy plan in 2000 which was “rubber stamped” by Vice President Dick Chaney’s secret Energy Task Force.
Financial turmoil and the specter of increased gas prices will take a big bite out of disposable income.But as people often say, economy begins at home.Homeowners should be looking for every opportunity to reduce wasted cash.
There are many ways to improve the economy of a house including adding Cellulose insulation, sealing doors and windows better, adding tankless water heaters, installing solar panels or just unplugging appliances.
While it is unrealistic for many home owners to totally wean themselves off oil-derived energy, think of the changes as improving a homes “miles per gallon.”Remember how people used to scoff at “green-niks” for driving a Prius?That was until gas prices increased to over $4.25 a gallon.
This is very much a “dollars and sense” issue.If you can save money and help the environment – why not do it?
Ultimately, if the price of oil does increase significantly and moves towards the $500 per barrel estimated by Simmons, then alternative energy sources will become more economical and wide-spread.Until that happens – do what you can today to stop “wasting” money.