Thursday, June 19, 2008

What if?

What if the price of oil were to increase to 250$ a barrel? Could it change the entire concept of transport by road and indeed our entire philosophy toward road building or more specifically the construction of more and more new roads?
Europe generally can still be held up to ransom by the oil producing countries. The current rate of exchange €/$, the currency in which oil prices are dealt, is about 1,50 (dollars to euro). There is an argument that the rate should be more appropriately at a level of 1,20 (i.e. 1,20 dollars to the euro). That adjustment alone would raise the prices of petroleum in the euro zone by about 30%. At the end of the day, rates of exchange should be and must be determined by the internal purchasing power of the respective currencies and not by any artificial mechanism.
There are many factors to be taken into account such as the balance between storage and haulage i.e. the relative advantages of JIT: just in time delivery of products to outlet. Planning; both town and manpower planning are critical.
What are the implications for development and property in this scenario?
Are there too many of us already living on this planet, at 6,675billion?
What would Thomas Malthus think?
Is this scary pace of growth of the human species the real problem that we must sooner or later confront and resolve - peacefully?
Answers please to:
info@pci-international.com


info@pci-international.com

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