Things that are headed up these days: unemployment, foreclosures, adorable Pixar characters whose houses are attached to helium ballons, Daisuke Matsuzaka’s ERA and, argh, gas prices. A Russian energy group is predicting oil, which is currently just over $70 a barrel, will eventually pierce the stratosphere at $250, meaning it’ll pretty much be Mad Max time for everyone.
Worst of all, ballooning oil/gas prices will only drag the economy down.
Businesses that expect to thrive under such conditions will have to adapt surging gas costs into all facets of their business philosophy, the Chicago Business Examiner reports:
As consumers wait and watch and continue to spend slowly, businesses should develop strategies to help consumers deal with energy challenges not only for today but tomorrow as well. If oil reaches $250 per barrel consumer behavior will change drastically. Even If oil reaches $150 per barrel consumer behavior will change drastically. Any business that develops ways for consumer’s to lower energy consumption and expenses will shine. Whether developing an improved communication systems, more fuel-efficient cars, or methods to reduce travel, businesses need to think through energy pricing while developing and adapting their business plans and strategies.
Gasoline prices rising quickly is a two-sided problem, as gasoline prices rise people have less to spend on other consumer products which means businesses lose money. Businesses have less money because people are not buying their goods or services. We are undoubtedly shackled to oil and gasoline pricing and the more they increase the longer an economic recovery will take. It is critical that businesses adapt to gasoline price increases by developing corporate energy strategies that will lower costs wherever possible. Now is the time for business to lead and adapt not wait and react.
As a silver lining, expect unicycle and rickshaw stock to soar.