Deku said:I think the silver lining is, it will eventually get North Americans off their SUVs and get a real practical appreciation of smaller cars and fuel efficiency as well as drive technological innovation and acceptance of hybrids. There's absolutely no excuse for soccer moms to be hogging the road and crashing into buses in busy downtown streets on an SUV when they could be zipping around on a smaller more fuel efficient car where the frequent starts and stops wouldn't waste so much fuel.
And yes, I was on a bus in downtown Vancouver when a soccer mom crashed into a Bus on her SUV and tried to blame it on the bus driver.
That's a simplistic analysis. The oil companies also took a hit with the low fuel costs in the 90s but no one seem to mind then.
Most of them have to get their fuel from somewhere to process in their refineries, it's not like they get the oil for free and make a fortune off of it.
That said, since a lot of the commodity business has to do with futures contracts where prices are locked in ahead of time, rising price of oil means contracts that were locked in when prices were expected to be lower would yield considerable profit for the oil companies. But it's not really their fault since prices could just easily fall and they'd be stuck with a bunch contracts where they are supposed to buy crude at higher than the spot price on the market.
The real driver of rising oil prices is limited supply or more precisely, limited capacity to raise supply and China's surging demand for oil.
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You're not going to see widespread acceptance of hybrids for a long time. 1) the gas mileage in real world situations is not as good as the EPA tests suggest and 2) the premiums you pay for the hybrid technology and presumably maintenance (most of these cars haven't been around long enough to really say for certain how long those batteries lives are) are high enoug that gas would have to be a lot more expensive than it is even now for the consumer to actually save money over a non-hybrid version of a similar model over the expected ownership of the car.