A Hybrid may be no great investment if petrol prices stay as they are.
After all, there may be no savings after paying a premium for a Hybrid.
They’re, after all, more expensive than your standard vehicles.
But will petrol prices stay at these prices?
If it shoots up, owning a Hybrid makes sense. So you’ll just wait and see. Only buy one if you have to, right?
But hold on, everyone else will be thinking the same thing. There’ll be a rush for these environmentally-friendly vehicles. People will be dumping their gas-guzzlers. Car companies won’t be able to cope with the demand. Prices for Hybrids may rise very quickly.
Hey, but surely the oil price isn’t going to shoot up?
Maybe not tomorrow, nor next month, but according to Dr Fatih Birol, the International Agency’s chief economist, “the age of cheap oil is over”. It seems that we need to get ready for higher prices.
In 2009, The Independent reported that Dr Birol said that the public and many governments appeared to be oblivious to the fact that the oil on which modern civilisation depends is running out far faster than previously predicted and that global production is likely to peak in about 10 years – at least a decade earlier than most governments had estimated.
“One day we will run out of oil, it is not today or tomorrow, but one day we will run out of oil and we have to leave oil before oil leaves us, and we have to prepare ourselves for that day,” Dr Birol said. “The earlier we start, the better, because all of our economic and social system is based on oil, so to change from that will take a lot of time and a lot of money and we should take this issue very seriously.”
Recently, Dr Birol brought his Peak Oil date forward: “We think that crude oil production has already peaked in 2006”.
According to Wikipedia, Peak Oil is the point in time when the maximum rate of global petroleum extraction is reached, after which the rate of production enters terminal decline. This simply means that we cannot get as much stuff out of the ground as we did before. And it’s no help that the demand for it is rising, particularly with the rise of China and India.
So you may have guessed, this post is not about Hybrids at all. It’s a con. I really wanted to discuss Peak Oil!
But, as I said earlier, isn’t it better to get your environmentally-friendly car before oil price rises. The only reason to wait, is so that you can purchase an Electric car instead. No need for petrol at all!
I’m extremely happy with my Prius. It’s not the latest model, but I only fill up every three weeks. Apart from the sheer convenience, I’m saving money daily.
But not everyone’s going to buy my Hybrid Car argument. My closest and dearest has recently put in an order for a standard gas-guzzling vehicle. Not even the latest model Prius or the Honda Insight could tempt her … but perhaps Peak Oil will! ☺