Wednesday, October 26, 2005

The Cost of Progress

Fuel prices are through the roof, and that’s exactly where Jonathon Porritt thinks they should stay. “The era if cheap oil is over” says Porritt, chair of the Sustainable Development Commission in the U.K.

. “We need to see prices kept high in order to drive this change in consumer behaviour, to drive investment in new technologies” said Porritt in a recent BBC 4 interview.

The last 50 years saw cheap fuel, which led to accessible and convenient transportation. Cars were affordable forms of transport, and road trips were a feasible idea for college students. No more.

DeAnne Julius, the former chief economist for the Royal Dutch Shell Group is of the doesn’t always agree with Porritt. In the same interview, she argued that technological change . Julius considers the current state of oil to be an extreme case of what the world has already seen, and what will continue to be seen. “We’re likely to see big spurts and big falls,” she says. Julius predicts that costs will soon plummet and are “more likely to be $30 to $40 (USD) a barrel” as opposed to the current average of $60 USD per barrel.

Porritt isn’t so easily convinced. The worst thing a government could do would be to fold under the pressure of its citizens and artificially lower prices. Four years ago the U.K. faced a similar fuel problems, protestors took to the streets, and fuel prices dropped. A short-term solution to a far greater problem.

It is just that kind of short-term thinking that scares Porritt. He believes in long-term solutions, and using the current situation as a catalyst for change. It is in new forms of energy that nation’s will progress. “The countries that understand future economic prosperity lie in maximum efficiency of energy sources” says Porritt.

The issue of energy consumption is an ongoing problem, and only through mass changes in the consumer market can results be expected. “High oil prices are not necessarily a bad thing, if we plan for it” says Porritt. “People are already thinking about what car to buy next, and they’ll think fuel efficient, not gas guzzling SUV”.


But, just what are these technological evolutions Porritt is so sure of, and will they be available to the consumer any time soon?

Global Electric Motor cars, a division of Chrysler, is just one company hoping to provide a solution. The US based company manufactures cars that run on six 12V deep cycle batteries and a five horsepower engine. Though unsuitable for highway use, these powerful electric cars have already been approved for city-road use in 25 European countries, and 32 states.

Mark Johnson, the government and international sales manager of the company, affectionately calls them the “neighbourhood vehicle, perfect for getting around the city, picking up groceries, or dropping the kids off at school.” These neighbourhood vehicles come in four models and range in price from $7000 USD, to $9000 USD.

Though not yet approved for road use in Canada, some towns in the US have already begun using them for municipal purposes. Hemstead, NY, in central Long Island, was the benefit of Global Electric Motorcars awareness program. 77 electric cars were donated to the town to be used for public safety, and the Water and Parks department.

Johnson predicts that they will become essential for city dwellers. “Already all military branches in the (in the US) use our cars” he says, “people are green, it’s just a matter of time”.

Perhaps he is right, it is just a matter of time, and money.

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