Can oil fuel the electric car?
In the past few weeks, the United States has called for unilateral sanctions against Iran due to their continued pursuit of nuclear capability. Iran currently controls the Strait of Hormuz, where twenty percent of the world’s oil flows. Eighty-five percent of all the oil coming out of the strait is headed to Asia. China, the biggest oil consumer in all of Asia, is a critical ally if these sanctions are to have the desired effect. If Obama’s plan for unilateral sanction is successful, Iran could possibly retaliate by stopping or slowing the flow of oil coming out of the strait. Many believe that Iran’s threat to close the strait is a bluff. In a recent CNBC news article, Julian Jessop, chief global economist at Capital Economics said, “If this does happen we would put the price of crude at $210 a barrel." If that happens, Americans could be looking at gas prices up to five or six dollars a gallon. The one positive that I am hoping results from this is more people buying electric or at least hybrid vehicles. When I read the results from a recent USA Today/Gallop poll I was blown away. It seems that fifty-seven percent of Americans wouldn’t consider buying an electric car regardless of gas prices, and that twelve percent would consider when gas prices rise above five dollars. I’m hoping that oil prices do not increase, but if they do, I hope it causes an increase in consumer demand for EV’s. In a perfect world, increased consumer demand for Electric Vehicles would spur the auto industry into designing and manufacturing more efficient models. According to that poll, 12% is a best-case figure. We need to raise awareness about alternative energy in every industry. Your home is a huge first step, but we shouldn’t overlook the type of car you’re driving or the products that you buy.

