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  • Bills set to soar!

Bills set to soar!

Alex Rittener
Tuesday, 16 February 2010 / Published in Uncategorised

Bills set to soar!

Every now and then one reads an article that doesn’t necessarily tell you anything you didn’t already know but it serves as a big wake up call. That’s what happened to me when I stumbled across this article about Richard Branson and others warning us of huge increases in bills coming our way. The article is actually directed at the UK but it’s the same problem for everyone. Oil is running out and inflation is ramping up….as if we needed any more bad news right now! Unfortunately, that means the cost of all our basic requirements are set to surge, especially things like heating/hot water.

In fact, the estimates in the article are very conservative. They talk about the cost of oil set to climb to a “sustained level over $100 dollars over the next five years”. Bearing in mind that oil has already peaked at $147 a barrel, the basic rules of supply and demand can only lead to one conclusion. Demand from highly populated countries like China and India are increasing all the time as they become more industrialised, and when it comes to supply, oil is running out. Combine that with increasing inflation, and I think the price of oil could sustain a level over $200 in the next five years, nearly three times what it is now. Not just our bills but everything from food to transport will go through the roof.

I believe we should all be doing whatever we can to invest now in ways to protect ourselves from these difficulties in the future. Energy efficiency and renewable energy are crucial for the future – that cannot be emphasised enough! As I write this, the rain continues to fall but luckily here in Andalucia, we know that we get more hours of sun than almost anywhere else in Europe so we are lucky that we can really take advantage of solar power. What’s more, the local government is even providing a huge amount of the investment up front in the form of grants and subsidies, both for domestic and commercial purposes. I think investing in solar power now is what they call a “no brainer”!

Here is the link to the article I’m referring to: http://www.telegraph.co.uk/finance/financetopics/oilprices/7203172/Britain-faces-oil-crunch-within-five-years-Richard-Branson-warns.html

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