The end of cheap energy will change us

Humans are actually quite predictable: most of us wait for a crisis before acting.

Governments are no different. But that shouldn’t be a big surprise for they too are driven by human nature. Policy is motivated by the deadline of the next election, as opposed to sound long-term planning. In corporations, the pressure of delivering a positive quarterly or annual report often eclipses the strategic needs of the company.

A perfect example of this behaviour was when crude hit $147 a barrel last year. As the economic pain became acute, there was an outcry for more conservation, alternative fuels and better infrastructure. North American car manufactures, perfect examples of those that planned for the next quarter, suddenly found themselves producing vehicles nobody wanted, with no time or money to retool for changing consumer demands.

A lot of that thinking goes on in New Brunswick. The sharp drop in oil prices, brought on by a global recession and credit crunch, is a temporary condition. The evidence that we will see oil prices above $200 is almost a certainty, but for now we plod ahead as if current price levels will be the norm.

New Brunswick Business Journal