Oil Price another dimension

deereman64 · Mar 30, 2006

So far the arguements here over oil have focused on the price rising and possible solutions to that scenario. But I think we have ignored what could be another factor coming into play. The Iranians( and I dont want this to be a political debate on the rights and wrongs of Iran) are planning to establish an oil trading bourse for oil that will trade in euros. The diversification of oil pricing away from the dollar has come up a number of times but so far has never come to anything, but this timethe risks are greater.
One of the reasons that the Chinese, for example, have been willing to hold dollars has been that since their major import is oil and this is priced in dollars they have a natural hedge in holding dollars . Now if that market moves to another currency then the need for them to hold dollars declines. This opens up the possibility that. given our large trade deficit, the propensity to hold dollars will decline and we may be faced with the situation that not only we will be having to deal with oil price volatility but also dollar euro volatility.

AKfish · Mar 30, 2006

That's another interesting "wrinkle" to the international and domestic energy picture. It adds further support to the critical need for a comprehensive energy strategy for the nation.

I just returned from a trip to New Zealand. Beautiful country and friendly, hard working people. What was also noteworthy for me were the automobiles that were utilized by folks there. Many built by Ford and the GM subsidiary - Holden. A clear majority of the cars, trucks, vans and small industrial vehicles were powered by small turbo diesel engines.

I was very intersted in the crew cab (4 door) 4x4 pickups and the 1-2 ton utility trucks. Toyota and Nissan appeared the most often on the roads but Ford and Holden also had the same truck type available. Talked with a dealer in Queenstown briefly about these vehicles and whether they might ever show up on the American market (he also said they get 30+ mpg).

He didn't believe that the auto manufacturers would likely bring them to the American market anytime soon. Something about marketing strategists not believing that the American consumer would be inclined to purchase these vehicle types and the manufacturer's would see further erosion of market share.

Well, I'm seriously considering entering the landscaping business and would be most interested in one of those cab-over-engine crew cab 1 ton hydraulic dump bed utility trucks ( the wife wants one of those Hilux pickups..). They're easier to manuever in tight quarters and have enough power to pull an equipment trailer and get superior fuel economy! What's not to like?!?

As part of a national energy policy, one aspect would be increasing the average fleet mileage required of the manufacturers. If the marketing strategists won't provide the American consumer with more energy efficient and diverse choices in the marketplace maybe the average fleet fuel standards would compel them to make these vehicles available?

deereman64 · Apr 4, 2006

Just to follow up.This story was making the rounds this morning
Shortened Long Link

RalphVa · Apr 5, 2006

You see lots more diesels in small trucks in NZ, Oz and Europe. Why oh why don't they market them here? Instead they market those hugh, heavy pickups that you have to be 7 to 8' tall to load and unload from the side and need a step ladder to get in and out of, both from the rear and into each side door. AND, they only get about 15 mpg.

I want a small pickup with front wheel drive and a small diesel engine. The one in the small Bimmers at 160 hp would be about right.

I'd also like some very sporty looking pickups like the Holdens in Oz. It could be sporty-looking, small and with a diesel engine.

Ralph

SkyPup · Apr 5, 2006

Me too, a four cylinder turbocharged diesel pickup with 150HP and 250 pounds of torque that could tow 5,000 pounds that gets 35 miles per gallon would be absolutely awesome! /forums/images/graemlins/grin.gif

automech · Apr 5, 2006

I've been saying the same thing for years. A smaller diesel engine coupled to say a beefy eight speed trans or a 5 speed trans and a 2 spd rear kinda like the otr tractors but on a pickup frame. I'd shift like crazy for 35 miles per gallon.

bugstruck · Apr 6, 2006

Let's hope that the Iranians aren't sucessful with that. The economic consequences of the $ not being the standard world oil trading currency will be much more problematic than just the $/euro volatility and the potential energy cost impact. China is certainly the big play in this over time as you ellude. Others should be so observant. I'll leave it at that, so nobody has to remind me I'm only one or two good steps away from a political comment. /forums/images/graemlins/wink.gif Tempting though. /forums/images/graemlins/grin.gif

AKfish · Apr 8, 2006

I don't want to get into any political finger pointing, either. However, the original post does point to a situation that has "ugly, black-blue storm clouds" all around it!

We won't be able to keep spendin' our grandkids money if foreign countries stop buyin' up our dollars and holding them!

And the "competitive" marketplace hasn't offered the consumer many choices to use "less" fuel; either.

Need some vision and a little gumption to move ahead--- /forums/images/graemlins/grin.gif

AKfish