Oil Prices in Economic "Danger Zone"

So says the International Energy Agency

1 min read
Oil Prices in Economic "Danger Zone"

At a time we're hearing talk of five dollar a gallon gasoline in the United States, International Energy Agency chief economist Fatih Birol is saying that the level of world oil prices could threaten global economic recovery. Birol was commenting on an IEA finding that the OECD member countries--essentially the world's advanced industrial countries--saw their oil import bill increase by a third last year, from $590 billion to $790 billion. The 27 members of the European Union, which has become notably more dependent on oil imports from OPEC and the Russian sphere, found themselves paying $70 billion more in 2010 for imported petroleum.

At present, world oil prices are edging toward $100 per barrel again, and though industry leaders are calling on governments to make life easier for them, it's not likely in the wake of the Gulf Oil catastrophe that their pleas will be heeded. A scathing report on the disaster, to be issued this coming Tuesday, will declare BP, Halliburton, and Transocean to all have been about equally culpable. Because of its alleged negligence, BP is widely expected to face criminal charges.

As energy writer Michael Klare has been putting it, we've entered the age of tough oil.

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This photograph shows a car with the words “We Drive Solar” on the door, connected to a charging station. A windmill can be seen in the background.

The Dutch city of Utrecht is embracing vehicle-to-grid technology, an example of which is shown here—an EV connected to a bidirectional charger. The historic Rijn en Zon windmill provides a fitting background for this scene.

We Drive Solar

Hundreds of charging stations for electric vehicles dot Utrecht’s urban landscape in the Netherlands like little electric mushrooms. Unlike those you may have grown accustomed to seeing, many of these stations don’t just charge electric cars—they can also send power from vehicle batteries to the local utility grid for use by homes and businesses.

Debates over the feasibility and value of such vehicle-to-grid technology go back decades. Those arguments are not yet settled. But big automakers like Volkswagen, Nissan, and Hyundai have moved to produce the kinds of cars that can use such bidirectional chargers—alongside similar vehicle-to-home technology, whereby your car can power your house, say, during a blackout, as promoted by Ford with its new F-150 Lightning. Given the rapid uptake of electric vehicles, many people are thinking hard about how to make the best use of all that rolling battery power.

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