Cheap energy is gone forever
Let’s face it: the era of cheap energy, in particular the one deriving from oil, is gone forever. Prices in those countries importing oil will never return to the level of the nineties.
It is not only due to the law of supply and demand where more and more countries need energy to sustain their growth while extraction and distribution of oil becomes more difficult and expensive. There are long-term political and economic situations which all pull in the same direction:
- Chronic instability in the Middle East, located in the centre of the world biggest reservoir: the amount of money involved represent billion and trillion of dollars which get into the pockets of few powerful individuals and oligarchic regimes. It is in their interest to keep the situation unstable enough to make us worry of oil supply on a permanent basis. Have you notices that as soon as oil prices tend to slip a few dollars someone somewhere creates a new crisis, whether that is a large killing or terrorist attack or diplomatic retreat of peace negotiations? Ask yourself who benefits from such crisis and you will find that in most cases it is the oil industry and those who control it.
- Governments which import oil heavily tax its derived products. The intent is twofold: control the demand and fund infrastructure works (roads and the likes), but also internal debt. It is difficult to see how governments could reduce them regardless of other factors. They will more likely increase them.
-
We are aware of the impact that China is heaving on oil prices already as a growing economy. However, China is said to have a long-term plan to create a strategic reserve to avoid disruption to its industry in case of serious political crisis with the US which could cut various supply routes to that country. China cannot afford such threat and is ready to pay a high price for managing the risk.
- Alternatives are available on paper and some of them in significant development stage, such as solar panels and windmills. But it will take decades before they can make an impact. The issue is that governments cannot unilaterally impose to their own countries a radical switch because it would put them out of the world economic competition. It would mean overprice of goods and services, causing long and deep recession. And usually governments are not stable and strong enough to afford it.
A different framework
Being stuck between ever increasing energy prices and lack of easy alternatives we have to invest strategically and change our own behaviour.
The first and foremost investment is a change of attitude while gaining increased awareness of wastes and inefficiencies. By the way, this is also valid for many other resources such as water, wood, etc., which encompass the wider ecologic framework.
Significant savings can be obtained with low energy or passive houses. More expensive at purchase they are usually cheap to run and partially subsidized by governments. Such houses are also more valuable at the moment of selling them. Regardless of the house you have, it is good practice to cap the room temperatures. You health will also benefit by activating the body natural temperature control mechanisms.
More savings can be obtained by reducing the number of cars per family or even avoid them altogether. Bikes are healthy. Carpooling and public transportation are good options, also because you can socialize or read a good book.
Even more can be done by spreading teleworking practices. You can start talking about it at your workplace and volunteer for trials. Nowadays this is perfectly possible for a variety of jobs. Apart from energy savings and improved life conditions, it spreads a culture based on results (the best control for the teleworker), not just staying at the workplace, regardless whether you are idle or busy.
Besides, it forces employers to think about results and Key Performance Indicators (KPIs), recognised to be at the core of the HRM ‘work system’ (Guest, 1987; Sisson and Storey, 2000).