ecodriving

the first attempt to transport ecodriving info

Energy prices low - bad outlook for energy conserving activities?

There might be at least three reactions from consumers:

1. yes we can continue wasting fuel, since the real well to tank price for the energy is much lower than expected
2. no, we should not change our saving attitude, the next price bubble is on its way
3. wasting energy at home is pricey, but the installed kW power is to expensive for me with cars.

Some comments to that:
ad a) The crisis has shown what the temporary base price is but the exploration and use of new oil fields will be more costly and thus rising prices are to be expected. If the demand collapses reducing extraction beyond the optimum keeping the oil field alive will also cost money adding to the variable costs.

ad b) this is not reasonable for short term, since the demand is falling from both sides oil connected production and oil burning.

ad c) this might have been true in the past since no new power plant were build, but this will change while new power plants or energy storage facilities will be build. But of course investing in more power with cars will never pay off unless you have no speed limits.
What is now the conclusion:

We should not rank price as the main argument for saving energy for a couple of reasons. From an economic stand point the difference between the market price and the production cost for energy should be sufficient high that investment in renewable pay off. That will generate new jobs. Full stop.