Rising Crude - Fueling Innovation !!!
Crude prices touched a high of USD 128 before retreating to a little over USD 124 on May 16, 2008. Rising crude prices have created a lot of problems for governments and businesses around the world. Countries like India have to contend with increasing import bills and rising prices of essential commodities, partially because of high oil and gas prices. Experts have warned that oil prices might touch USD 200 making personal transportation and goods depending on oil even more expensive. However, I feel that there is a bright side to this situation.
Rising petrol, diesel and gas prices will bring focus on cleaner alternative fuels thus making them more affordable. It will make business sense to invest in alternative fuel technologies like Hydrogen. Who knows, this increased focus and investments coupled with the developed and developing countries need to reduce their dependence on oil will lead us into an era of new fuels which are more environment friendly.
We can already see some signs of change. People in US are already shifting to smaller more fuel efficient cars. This is a huge cultural change for them. Present US economy is less susceptible to oil price shocks. According to theEIA , in 1973, each 1000 dollars in GDP required 2.4 barrels of oil while in 2001 that number went down to 1.15 barrels. In India government is providing special incentives to popularise use of solar energy. Local companies likeMoser Baer are betting big on generating electricity using solar energy. Surya Roshni Limited in setting up a plant to manufacture Compact Fluorescent Lamps (CFLs ) at Rs 25 a piece as compared to current rate of Rs 80 to Rs 120. These lamps are expected to be of much better quality as compared to their similarly pricedChinese counterparts. This will go a long way in reducing pressure on gas fired power plants for generating electricity.
As they say “Necessity is the mother of invention”. High oil and gas prices may force one of us to come with something entirely new to address this globalchallenge.
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June 3rd, 2008 at 6:52 am
Well Said “Necessity is the mother of invention”
I guess you have stated “D” most important topic of discussion.
I hope people take this oppurtunity, to go beyond the problems and find a solution which will lead us to find the answer to the growing OIL rise problem.
I was discussing this with my friends over the lunch table today, why not get to the old trade days.
We say we will give you food, you give us oil.
And at the same time work towards solving the oil problem for ones.
I guess there is always a way out.
Regards,
Santosh K.