$2 Per Gallon Gasoline IS Possible

I will even state that 50 cent per litre gasoline in Canada is entirely possible.

How can I make this outlandish a statement? First a lot of Canada’s gasoline price is actually TAX so we only really need to cut the price of Gasoline in half to reach this lofty goal, but that is not the only reason.

Let me secondly tell you a quick story about my days at Nortel. When I started working there in the mid-80’s we have Vision 2000, where our goal was to be the Number 1 Telecommunications company in the World by the year 2000. Surprisingly Nortel reached that goal, however, by that time, it no longer mattered, because the Internet and Data networks had changed the world so much, no one was buying that much Telecomm equipment any more. We kind of ended up like being “The Smartest Man in the WWE” ™, who cares?

This is where my $2 per gallon and 50 cent per litre argument is actually based, in the next 20 years or so, there will either be technological breakthroughs and changes so drastic that the price of Gasoline (and Oil in general) will no longer matter any more, or, we will be completely f*cked, it’s that simple. The way that Gasoline prices and Oil prices are being manipulated and the fact that it is a dwindling resource (depending on the model you look at), something must change in 20 years, or the world economy will fall over (as opposed to this year’s version of the great economic implosion).

My guess (and hope), is that thanks to technology in general, computers in specific, that model will take over in terms of the use of energy and gasoline, and there will be a dramatic drop in the demand for Oil and Gasoline thus driving the price through the floor. This sudden dramatic drop will not do Canada any favors, so hopefully we won’t be the Gas Can for North America by then (but I suspect we will be).

The major thing stopping the widespread use of electric power for cars and transport is Battery and the ability to store energy (and how long it takes to recharge the batteries). Each year there are new(er) ideas coming forward, which hopefully will cause a version of Moore’s Law for battery lifetime (doubling capacity every  two years) or something close to that, and once that happens, gasoline will no longer be as important.

Am I completely off my nut? Maybe, I have been wrong before (remember Bill Gates saying, “Who could need more than 640K of memory in a computer”), but my guess is something will change and the ludicrous promise of Gasoline at $2 per gallon is possible, but maybe not in the next few years, and by that time, no one will care!

Any nay sayers

 

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Rant: 15% Electrical Hike?

Just when I thought I was figuring out how to balance my expenses, I read in this article from the CBC that Ontario Hydro is going to hike my rates by 15% (luckily they are going to shut down the coal fired plants, so we won’t have as much supply either, that should help the price out a lot (facetiousness alert!)).

So I continue to die the death of 1000 paper cuts. All of my home expenses are going up (even though I am told inflation is only 2%), heating my home with Natural Gas is more expensive, Cooling my home this summer is going to be $20 a month more expensive (since I have equal billing), and the gas for my cars is at the $1.00 a litre range, AND they are going to raise interest rates to FIGHT inflation (thus my mortgage and line of credit interest is going up as well). OK, so who is going to help the middle class deal with all of this? I would guess there will be heating rebates for the low income folks (I think that is a good thing, if you are asking), but what about me? I don’t get any money for the government because I am too “rich”. I don’t get to write off any camps for my kids, because my wife doesn’t work.

Oh and the Tories are now thinking about not lowering my income tax.

I better go out and by some 4 year old cheese to go with all this Whining I am doing.

Mr. Harper and Mr. McGuinty why do you hate the middle class?

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Rant: Gas Prices I can’t take this…

So the full farce that is the price of gasoline in Ottawa is driving me insane these days. The Ottawa Gas prices web site tells me that this morning (Wednesday) the price of gas is between 98 cents and $1.02 a litre, yet I know tonight as I come home from work (in less than 12 hours) the price will be down to 92 cents a litre (or liter if you prefer). I drive a ’94 Accord, so I need about 25 litres a week to get around and do what I need to do, so depending on when I buy my gas, I could “save” up to $2.50 on my purchase.

Am I the only person that thinks this is freaking insane. The gasoline is IN THE GROUND, it hasn’t changed (well chemically it may have reacted in some fashion, but that is being picky), yet the price of it waivers over 10 cents in a DAY. What can be done about this? Buy a hybrid? Well, you have to watch for the “Smug” factor there. Buy a smart car? I am 6’3″ tall, I guess I might fit in one of those, but I drive on a highway a lot, and might feel a little exposed. I could ride my bike to work, and that is starting to become a real possibility, if I can’t drag my sorry ass to the gym, maybe biking is the answer, but it is dangerous too.

Not sure if our friends in the U.S. have to live with this kind of price swings (if I had mood swings like this, I’d be on Prozac at least), but this is driving me NUTS!!!

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