Oil will hit $150 a barrel by 2010; $225 a barrel by 2012; and gas will exceed $1.40 a litre this summer and $2.25 a litre by 2012, according to Jeff Rubin, chief economist at CIBC World Markets.
In this new reality just how many Hummers does GM really think it'll sell? When will GM stop resisting fuel efficiency standard increases?
In the 2004 election when launching the GPC platform on Parliament Hill I talked about the Green Party's position of putting on 10 cents a litre gas tax as part of our tax shifting initiative. One TV reporter's response: Canadians will never accept 70 cents a litre gas (then gas was 60 cents). Hmmmm.
When I talked about $100 a barrel oil in 2004 some people felt this was unrealistic. Lately I've been talking about $200 a barrel oil. It's vindicating to have the CIBC's chief economist confirming support.
How will the Canadian economy, the most energy inefficient economy in among developed nations, do in a $225 a barrel future? in a $350 a barrel future? We produce less GDP per unit of energy input than every other country? (See blog Energy Efficiency: Key to Economic Security & Ecological Security at http://www.greenparty.ca/en/node/3362
For the article see http://www.financialpost.com/story.html?id=469214