 |
|
 
For the debate over gas prices to go anywhere, we have to accept one important fact: Oil is a non-renewable resource. Once it’s gone, it's gone. That, more than anything, is what’s driving prices up. For years, economists have warned us that we are nearing the end of cheap oil. There is still oil out there, but it is getting harder and harder to reach, so it’s getting more expensive. North Americans have been isolated from this trend for a long time because of government policies designed to keep costs down. The problem is, high demand and instability in the Middle East has finally pushed those prices up and they are likely to stay that way. It’s a basic law of supply and demand; when growth in demand starts to outstrip supply, prices go up. For Canadians used to driving SUVs and other big, gas-guzzling vehicles, it’s been a pretty big shock. Even those driving your average family minivans are feeling the pinch.
So, as energy prices increase - and that includes gasoline - Canada will be hit harder than most everyone else. And our competitiveness will suffer. Right now, our economy is predicated on having access to cheap and plentiful energy supplies. We are ill-equipped to deal with rising prices – yet that is exactly what the future bodes. Tell a friend about this newsletter
|
|
It’s going to get worse, too. According to a 1999 Organization for Economic Co-operation and Development (OECD) study, Canada’s economy ranks 28th out of 29 industrialized countries in terms of energy efficiency. That means to generate a dollar of GDP our economy needs to use more energy than just about every other industrial country.
