May 29 2008

The Savior Of Gas Prices - Telecommute!

Posted by Mike Brunt at 9:23 AM
5 comments
- Categories: Default

There is one thing we need to get used to as it will not change much; the high price of gasoline.  The reasons boil down to the bedrock of market driven economies, supply and demand. The world reserves of oil are said to have peaked around 2005, there is a good article here with information on that and the predicted consequences.  In addition to these predictions, by many learned persons, we have the situation of poorer countries getting richer. China and India are the largest two in that group. As citizens get wealthier they aspire to the same levels of consumption as more prosperous nations, travel-vehicles being a major aspiration.  Obviously this will drive up the demand for oil ever more rapidly.  There are estimated to be 6.6 billion people on earth of that number almost 2.4 billion are in India and China alone, more information on this here.  The short to medium term consequences of this are inevitable; high gas prices. In the USA $5.00 per gallon is not going to be too long coming; in my opinion.

In our world of technology, we have the capability to help; with immediate effect.  Anyone who can telecommute should be allowed to do so. The only thing that stands in the way of this, in my opinion, are inept managers who do not have the capability to trust those who work for them. 

Comments

Steve

Steve wrote on 05/29/08 11:55 AM

Do huge, newly prosperous populations really imply that those populations and their infrastructures will be able to accommodate the desire for all those new cars?

What I mean is that although China and India have enormous populations and blossoming economies, is their transportation infrastructure (highways, gas stations, traffic regulations) ready to host all those shiny new TATA economy wagons? It will take years if not decades for many cities to introduce the infrastructure to handle the kind of automobile demand that's predicted.

I tend to think that if the infrastructure was already in place, *then* we'd have to worry about the rise in gasoline price due to the need to fuel those cars, and the lack of infrastructure on par with Europe or the US will in the short term limit the actual requirement for the commodity. Fear and speculation may ultimately be the only governing forces on gas prices.

Moreover, if you've ever been to some of the packed cities in those nations, you have wonder, ... where are they going to park all those cars when the only direction that they can build is up? (or down?)
Mike Brunt

Mike Brunt wrote on 05/29/08 2:01 PM

@Steve, you make good points, sadly I believe they will find ways to cram vehicles in there, it is already happening. Together India and China have populations 8 times the size of the USA and Automobile Industries salivating over them.

Thank you for taking the time to comment.
kc

kc wrote on 06/10/08 12:02 PM

I was assigned to research the possibilities of telecommuting at my organization. I am thinking that if all Us employees telecommuted 20% of the time or alternatively worked a 4 day week (10 hour days), this would reduce the demand on oil in the US by 20%. Would this have a significant effect on demand to lower oil prices, thus reducing the eceomnomic burden being placed on individuals and in the end improving the economy in the US?
kc

kc wrote on 06/10/08 12:05 PM

I was assigned to research the possibilities of telecommuting at my organization. I am thinking that if all Us employees telecommuted 20% of the time or alternatively worked a 4 day week (10 hour days), this would reduce the demand on oil in the US by 20%. Would this have a significant effect on demand to lower oil prices, thus reducing the eceomnomic burden being placed on individuals and in the end improving the economy in the US?
Mike Brunt

Mike Brunt wrote on 06/28/08 3:44 PM

@KC I am sorry to be late in replying to your comment and points. I assume you are trying to assess the potential impact of telecommuting in your company relating to productivity and in return the bottom line. You have prompted me to create another blog post relating to this whole issue, thank you.

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