Ghosn Goes to Israel

Via Autoblog Green, we learn from the Globes of Zohar that Carlos Ghosn (Nissan-Renault President and CEO) is expected in Israel for the dedication of Project Better Place.

Meanwhile, The Long Tailpipe has some sobering information:

On Jan 3rd 2008 the cost of importing oil to the US was $1.3B a day – roughly 2 weeks worth of oil in 1999 – and if the price point stays where it is the US will see another $500B disappearing from its trade balance in 2008. (My emphasis)

Adding in the cost of subsidies for the domestic oil industry, the delivery and refining costs of gasoline, the healthcare cost of using it, and the cost of securing oil sources around the world and we are looking at probably the same amount in “externalities” of oil which the US budget loses every year. The combined sum is a staggering ANNUAL Trillion US dollars – roughly the Chinese federal cash reserve.

Oil, we found out, is neither cheap nor abundant. It is dwindling and [increasingly] hard to extract. The issue at hand is not whether we have enough reserves, but rather whether we have enough of a pipe out of the current reserves to feed the global addiction.

We have moved from supply side constraints to demand based pricing. As another oil expert explained to me we are at the mid point of oil prices as they move from an equilibrium at $50/bbl to a new level at $150/bbl.

He had a chilling analysis for the two sides of the oil price spectrum. “…At $50/bbl governments invest in demand; At $150/bbl they secure supply…”. I see that statement as one of the most profound statements I had heard about the oil market and the role government plays in it.

We have to put our money into easing demand before it is too late. Addicts who wait for the crisis do not recover in the same shape as they were before a stroke or heart attack hit them.

In the world of oil a heart attack is a global recession, and a stroke is probably global war. We can’t afford either. Only solution to addiction is drying up on the substance.

We may be too late, but we still need to try – putting more money into oil without putting any money into oil independence will make us dream of days when oil was cheap and abundant – at only $100 a barrel.

O.K., that get's you backstage, but stay away from the models, you Hypermini crusher.

"That is an improper citation. It would be rejected by Wikipedia."

O.K., O.K., Globes, one of Israel's leading economic publications, has announced that the dedication ceremony for Shay Agassi's project will be on January 21st. Ghosn may be going for the ambiance, eh?

Investment is expected to be in the range of $150-300 million. The car won't be built in Israel. (Xavier Navarro guesses maybe by Chery?)

On the other hand, the Green Tax Committee that recommended a purchase tax of 10 percent (compared to 78 percent on regular cars, if you wondered) said that this break should be ended if the market share for EVs exceeds 20 percent. This measure could be valid through the end of 2014 if it's protecting an emerging industry. The GTC also recommended taxing electricity so the cost per kilometer would be similar to the cost of using gasoline or diesel.

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