Summary
Goldman-Sachs expects that gas will rise to $4.30 a gallon by 2008, creating a huge recession in the U.S. Since most every sector of the economy relies on oil in some way, the effects on the economy will be catastrophic. However, clean fuels will definitely receive a boost. Companies producing equipment for wind and solar power equipment will see great growth, and car companies will be forced to build more fuel efficient cars rather than SUVs.
Original source:
http://www.redherring.com/Article.aspx?a=11650&hed=Oil+Spike%E2%80%99s+Impact+on+Technology§or=Industries&subsector=Energy
Details
Rising gas prices might convince Americans to stop buying SUVs, and give the clean energy sector a boost.
Crude oil rose $1.61 to $55.60 per barrel in recent trading on the New York Mercantile Exchange.
Goldman Sachs estimates the average oil price will be $135.12 per barrel by 2008, which would put U.S. retail gasoline prices at $4.30 per gallon, about double the national average of $2.15 reported this week by the U.S. Energy Information Administration.
If at-the-pump prices top $4 per gallon, Americans might stop buying gas guzzling sport utility vehicles (SUVs) and instead seek fuel efficient alternatives, the Goldman Sachs report said.
In the meantime, the market is seeing immediate effects as investors assess the impact of oil prices across all sectors, including technology.
The price of oil actually has limited impact on IT technology, said Martin Reynolds, a Gartner fellow specializing in emerging technologies.
When the low-value producers go out of business, that affects the overall economy, he said.
Overall economic dampening is probably the biggest influence of oil prices on the high-tech industry.
Higher costs of transportation for componentsâ¬"as well as increased prices for shipping materials, such as plastic wrapping, that are made from oil and gas feed stocks"could also squeeze manufacturers with slim profit markets.
And oil price increases are tied to higher natural gas and electricity prices, too, Mr. Elliott said.
Lighter-weight materials, more advanced engine-control systems, low-resistance tires "these things are going to trickle down from premium lines to the secondary market, and are going to become standard on fleet vehicles, Mr. Elliott said.
But he noted hydrogen technology might actually be dampened by high natural gas
prices, because natural gas is used to make hydrogen.
About the author: Mike Adams is a consumer health advocate and award-winning journalist with a mission to teach personal and planetary health to the public He is a prolific writer and has published thousands of articles, interviews, reports and consumer guides, and he is well known as the creator of popular downloadable preparedness programs on financial collapse, emergency food storage, wilderness survival and home defense skills. Adams is an honest, independent journalist and accepts no money or commissions on the third-party products he writes about or the companies he promotes. In 2010, Adams launched TV.NaturalNews.com, a natural health video site featuring videos on holistic health and green living. He also launched an online retailer of environmentally-friendly products (BetterLifeGoods.com) and uses a portion of its profits to help fund non-profit endeavors. He's also a successful software entrepreneur, having founded a well known email marketing software company whose technology currently powers the NaturalNews email newsletters. Adams volunteers his time to serve as the executive director of the Consumer Wellness Center, a 501(c)3 non-profit organization, and pursues hobbies such as martial arts, Capoeira, nature macrophotography and organic gardening. Known by his callsign, the 'Health Ranger,' Adams posts his missions statements, health statistics and health photos at www.HealthRanger.org
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Monday, April 11, 2005
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