Much is being said and written about how the increased price of oil to over $140 per barrel is injuring our economy. Moreover, the prediction of $200 per barrel by the year end is being heralded as the “Tripping Pont” by many pundits—an unthinkable change in the landscape of western civilization.
My response to these pundits is they may be overlooking the many new opportunities that high priced oil products will bring. Let’s examine some of the marketing opportunities that might be created by $200 per Barrel Oil:
1. Real estate prices will favor the urban areas. A tremendous buying opportunity may be at our feet with prices currently at record lows in metropolitan areas. The up-coming real estate rally will be fueled by high oil prices. Bye-bye suburbs and the rural lifestyles,
2. Telecommuting will finally deliver the promises of value. This includes video conferencing, webinars, and work at home situations.
3. A rush to create “4-day work weeks” will help commuters save money. This will create more recreation time for consumers. Note the State of Utah is trying a one-year 4-day work pilot program to save energy and money; this pilot will affect the majority of Utah state employees.
4. Local tourism should increase . Families will opt to stay at home for vacations and take advantage of local recreation such beaches, museums, and theme parks. Road trips and plane flights will be just too expensive. I have heard these referred to as “Staycations”.
5. Regional oil exploration and drilling will boom. The Feds will create new incentives for exploration for local sources of oil.
6. Oil extraction economics will change. Older oil wells once considered “tapped” when the bottom of the wells turned from liquid to sludge, may now be reopened.
7. Fuel efficient cars seem an obvious solution. The SUV may be dead, but the economy car may have just been named homecoming queen.
8. Alternatives to fossil fuel may get additional tax preferences. Solar, wind energy, and gasoline alternatives will get a boost from the Feds and from the consumer.
$200 per barrel oil will create many new entrepreneurial opportunities—-let’s look at the bright side.
John Bradley Jackson
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