He said what? Predicts oil @ $250 a barrel!

June 11, 2008

As reported in Huffington Post

The chief executive of the world’s largest energy company has issued the most dire warning yet about the soaring the price of oil, predicting that it will hit $250 per barrel “in the foreseeable future”.


The forecast from Alexey Miller, the head of the Kremlin-owned gas giant Gazprom, would herald the arrival of £2-per-litre petrol and send shockwaves through the economy. His comments were the most stark to be expressed by an industry executive and come just days after the oil price registered its largest-ever single-day spike, hitting $139.12 per barrel last week amid fears that the world’s faltering supply will be unable to keep up with demand.

Our Perspective:

Back in March, I made reference that we might be seeing $4.00 a gallon gas by this summer.  With the volatility in the current market we will likely see $5.00 gas by the end of the summer.

What’s driving this rise?

Is it corporate greed?

It is wall street speculation?

Is it the expanding world economy ( India & China ) that has increased demand?

You can probably look at all these factors playing a part. The problem still remains, we left ourselves vulnerable by not being proactive in the first place. We grew complaisant while the other team held the ball.

We must take a hard look and develope an energy plan that will provide a real solution going forward. There are many forms of alternate energy sources that exist. We must invest in those that seem most viable to serving our needs in the long run.

No more bandages, we are bleeding to death!

Incentives must be provided to those willing to invest in these alternative energy sources to help stimulate the interest. Prudent investors always look to the ROI.

New Jersey has provided a stimulus to go solar by providing SRECs to those companies and individuals who will produce electric. As of June 2008, the value of a SREC was increased to $711. Payment of the SREC is gaurenteed for 15 years with the value decreasing 3% per year.

A Performa will show that the payment of these SRECs will generally cover the cost for installing solar. Now add to this a 30% Federal Tax Credit and the fact that you are now producing your own electric. Suddenly heads are turning and Solar is Sexy again.

NJ has address the ROI and is now taking the lead to move solar and wind into the mainstream.

To learn more about solar opportunities for your company or home email george@hbsadvantage.com

Hutchinson Business Solutions

Creating Opportunities Today….Providing Savings for Tomorrow

Visit us on the web www.hutchinsonbusinesssolutions.com

One Response to “He said what? Predicts oil @ $250 a barrel!”

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