http://www.yubanet.com/artman/publish/arti...cle_17269.shtml With oil prices again near $50 a barrel and Detroit socked with both declining market share and profit-eating incentive wars on their bread-and-butter vehicles, America's Big Three face an unprecedented competitive challenge. The only way to regain leadership and protect thousands of high-paying jobs is to meet this "perfect storm" with high performance, high efficiency hybrid technology, NRDC's chief auto analyst told an important auto industry gathering. "This is a do-or-die situation for a vital American industry. We cannot afford to lose the fight," said Roland Hwang, Vehicles Policy Director at NRDC (Natural Resources Defense Council). "The answer is simple: Compete. Build the best damn cars and trucks in the world, and build them with the clean, efficient technology the market needs now. That means hybrids."
The price of a barrel of oil hit an all time high today. Saudia Arabia is at maximum output. That forecast of 2.40 a gallon regular unleaded by late spring looks quite likely to occur now.
The price of oil is not at an all-time high. In October it was 4$ a barrel higher than this and adjusted for inflation it would have to be more than 30$ a barrel higher than current levels. I don't see prices to break above 60$ a barrel in the next 6 months. Saudi Arabia is not at maximum output but their heavy crude doesn't help the price of light sweet by much. National average of regular unleaded is unlikely to break 2.20 by late spring. The gloom and doom forecasts will have to be pushed out a bit and revised down again. War in Iran would of course change that picture dramatically. All the gloom and doom will come to pass, but not right away.
Was in Milwaukee last week for a funeral. The price of gas was $1.92 at almost all stations. I had to return the car in two days so didn't even think about filling the tank for car return. I woke up the next morning and all the prices were at $2.09 or above overnight. I think gas prices in some parts of the country will be well above $3.00 early this driving season and stay there for much of the summer.
And through it all Toyota is planning on building even more factories here to meet surging demand. GM and Ford are going the other direction and having to contemplate idling plants. http://www.newsisfree.com/iclick/i,73345389,11779,f/
