the tindog coffeehouse

A report issued by CIBC World Markets is forecasting that by 2010, oil prices will hit $200 a barrel, which translates to $7-per-gallon for gas.

From Earth2Tech:

To keep it nasty, brutish and short, here’s what that means for U.S. residents:

• Stagflation;
• Driving like Europeans (15 percent less mileage, more public transportation — except Europe has pleasant public transportation);
• Market share for SUVs/vans/light trucks cut in half; vehicle sales collapse to early 80s levels;
• 10 million fewer cars on the road; one in five homes lose their second car;
• Hundreds of thousands of auto-related jobs disappear;
• Spending more per month on gas than food; diminished purchasing power compared to consumers in Europe or Japan.

And oh yeah, the report makes it crystal clear this isn’t a return of the 1970s, when the energy crisis was a painful but shortlived event. No, this one is going to linger for a long time.

Time to look for a new job closer to home!

I got a notice in the mail last week from Allstate showing my car insurance was going up almost $40 a month starting in June even though Christy and I both have clean driving records. That didn’t make any sense …until now:

Allstate Insurance agreed Monday to refund $51.6 million to its Texas customers for overcharges in homeowners insurance….

Are my increased car insurance rates helping fund Allstate’s refund to homeowners insurance customers?!

President Bush is expected to sign the recent energy bill passed by Congress which would require auto makers to increase the fuel efficiency of their cars to 35 mpg by 2020. Sounds good, right?

The AP is reporting how manufacturers will be “getting creative” to meet those figures, rolling out more advanced hybrids, using “cylinder deactivation systems,” and experimenting with lighter materials such as carbon fiber and aluminum. Still sounds good, doesn’t it?

Until you realize what this really means for consumers:

But Merkle noted that all of these alternatives will not come cheaply. Clean diesel and hybrid technology typically adds several thousand dollars to the cost of a vehicle, and more lightweight parts will also carry additional expenses.

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