Oildummy.com

Well, we’ve reached a milestone in our oil addiction; the price of a barrel of crude oil closed above $100 for the first time last week.  Our consumption, though, is steady-eddy as always.  It seems that Americans are now accustomed to $3 a gallon gas.  How much longer can this trend continue though?

Who would have guessed back in 2002, when crude was hovering in the $20 range, that we would see a five-fold increase in only 6 years?  I believe this huge run-up is testimony to the fact that the world continues to demand more and more oil yet supply is struggling to keep pace.  Just look at China and India.  Those two countries continue to get thirstier, plus America’s unbelievable amount of energy demand hasn’t relented. 

We’ve witnessed the enormous growth of the environmentally friendly/energy conservation movement over the past several years.  We’ve got a long ways to go though, and I hope we have the time to do it.  At present rates of demand, I’m doubtful we could operate with oil at $200 a barrel.  Energy prices have been on a long-term upward trend for a while now; will it continue?  If it does, where is the breaking point?  I sure hope we don’t have to experience it.  We need to act faster.

Who says environmentally friendly can’t be fast and fun? Tesla Motors definitely believes you can have both. The San Carlos, CA based company, with the help of Lotus Cars, developed a lean, mean, and green machine which can travel approximately 220 miles between charges. The eerily quiet Roadster accelerates from 0-60 in under 4 seconds and tops out around 135 mph, performance that normally requires a very thirsty internal combustion engine.

This is an awesome thing for the automobile industry. We have long had a certain fascination with fast cars (myself included), and it’s not about to go away anytime soon. I’m glad somebody with an environmentally conscious mindset noticed. I’ve often wondered what would happen to performance cars as we moved away from fossil fuels, but now Tesla has given me hope. Rather than ignoring the huge market for fast cars, Tesla is delivering.

As cool as the Roadster is, Tesla is a still a very new and small company. Only 650 vehicles are being produced for the 2008 model year and there are only a handful of service departments around the country for the $98,000 car. Since Tesla is such an infant company it’s still going to struggle immensely with high barriers to entry into such a tough field. Here’s hoping that they overcome their obstacles and make it big.

I hope other automakers are taking notice, and realize that efficient doesn’t have to be boring and slow. I have one request though. As wasteful as it is, there is something about hearing a supercar’s engine roar that gives me chills. I don’t know if I want a silent sports car. How about an option to artificially give it a mean-sounding growl on command?

At the Detroit Auto Show earlier this year, Toyota announced that they will produce a plug-in hybrid electric vehicle (PHEV) by 2010.  The vehicles will be available first to commercial fleets such as government agencies and corporations.  This move pits Toyota in a direct race with GM, who hope to release the Chevy Volt around the same time.  The competition in this field will no doubt benefit the consumers as well as the auto industry. 

I can only imagine what GM is thinking.  Even if they beat Toyota in a release date, Toyota still has the advantage of being the current hybrid king, and the massive success that is the Prius will give consumers confidence in their vehicle.  I think there will be plenty of market share for both companies if they both deliver the goods, but I don’t know if either would be content with a tie.  GM would probably love nothing better than to at least temporarily knock Toyota off their high horse.  Whether Toyota is only counteracting GM’s move is beside the point.  There is now real competition. 

Toyota said that they will be studying consumer demand for a car that must be plugged in and powered off the grid.  Like I’ve said before, with rising gas prices and tighter demand for world oil supplies, I don’t think it will bother consumers too much.  With continued growth in wind, solar, and geothermal energy, as well as cleaner coal burning technology, plug-ins should be much greener than traditional hybrids.  It will be extremely interesting to watch this play out.