$100 a Barrel
Today, the name of this blog, “Over the Barrel,” seems especially appropriate, as last week crude oil futures surpassed $100 a barrel on the New York Mercantile Exchange. True, prices quickly slid back below $100, but the news here is that the doomsday barrier has been broken.
If you have followed the alternative fuels market, here in Fuel Advantage Magazine or elsewhere, you may have noticed that experts are fond of declaring that this or that alternative fuel, while perhaps not cost-competitive at the moment, will suddenly become so when petroleum passes $100 a barrel.
Well, now that that moment has come, where are all the alternative fuel bargains? Have you been shopping around for your fleet? Has B20 biodiesel suddenly become your savior? Has E85 ethanol suddenly become the silver bullet? Are you ready to place an order for those CNG trucks that have suddenly become a relative bargain?
I have mentioned before that here in southern Wisconsin, E85 is routinely 60 to 90 cents a gallon less expensive than regular unleaded gasoline, so any fleet in this locale that could realistically add flex fuel vehicles to its stable and hasn’t done so probably needs its collective head examined. Maybe $100 a barrel petroleum will change a few minds in that direction, but I wonder how long it will take.
You have heard the story of the two frogs tossed into pots of water. One pot was boiling, and the frog hopped out to safety immediately. The second pot was cold, but the heat slowly built up, and by the time it reached the boiling point it was too late for the frog. Well, I think we’ve reached the boiling point, my fellow frogs.