plug in hybrids Archives - GreenMonk: the blog

Brent Crude price Aug 08 – Jan 09
Chart generated by thisismoney.co.uk

Posts on The Oil Drum and iStockAnalyst in the last couple of days point out something interesting.

Nobuo Tanaka, the head of the International Energy Agency (IEA) said today…

Oil at near $40 a barrel has slowed investment in oil projects, he told Reuters, raising the possibility of a supply shortfall once demand resumes.

“The current price level has a negative impact on investment in new oilfields,” Tanaka said on the sidelines of the World Economic Forum in Davos.

“We are concerned about slowdown, slippage, cancellation of projects. When demand comes back, we may have a supply crunch,” He added.

And from a post on iStockAnalyst a few days earlier:

A massive slump in oil exploration spending pummeled Schlumberger Ltd. (SLB), the world’s largest oilfield services corporation, as profit fell 17% in the fourth quarter. But the company said curtailed spending could be setting the stage for a rebound in oil and gas prices as supplies dwindle.

Schlumberger is pulling back as a collapse in petroleum prices led to a sharp drop in exploration spending by its customers.

So the current low oil prices mean oil exploration and investment in new oilfields is being cut back. Because of the inelasticity of the demand and supply curves for oil, this means when the world economy (and demand for energy) starts to ramp up again we are in for another price shock, like the one we saw in 2008.

With the next shock though we will have depleted that much more of the world’s finite supply, and the lack of investment in exploration means that the next oil shock will require an even bigger global recession for the price to fall back down once more. How likely is that?

With respect to time frames, this recession has at least another year to run, I suspect, before demand starts back up again. So another oil shock in 2010?

Perfect! Just in time for the launch of many of the new battery electric, and plug-in hybrids by the mainstream motor manufacturers!

Photo Credit Cayetano

I live in Seville, Spain and this town has a wonderful community bike rental program called Sevici. This is run by the town council and JCDecaux and use of these bicycles is free for the first 30 minutes and in the order of €1 per hour thereafter.

You use an RFID card to access the bicycles and you take bikes from, and return them to stations throughout the city like the one in the photo above. When you return the bike to a station, it is automatically recognised and locked.

Now what if you took this concept and married it with the idea of Car Sharing? And, what if all the cars in the car sharing program were electric (or plug-in hybrids) so that when you returned the car to its station, it plugged itself in and started to charge?

While a model like this wouldn’t work well in a suburban area, if you lived in a city center and had access to something like this, you might never need to buy a car. For cities trying to reduce their levels of pollution, levels of congestion or their carbon footprint, a scheme like this would seem to be a very appropriate step to consider.

A plan like this could also help with electricity grid stabilisation using vehicle to grid technologies.

Would you buy a car if you had an option to (electric) car share?