Petrole on High Demand by Tata Nano

One of the many economic trials suffered by Americans during 2008 was runaway oil prices. Remember paying nearly $4.oo per gallon for gasoline? Those days may be back, with a vengeance, sooner rather than later. My latest book, Bankruptcy of Our Nation, highlights the global energy crisis and America’s ever-growing dependence on foreign oil. In it I explain in great detail how our poor energy policies will eventually lead to massive energy price increases for every American.

Now an innovative mini-car from India may leave Americans struggling to afford fuel for their SUVs.

China has experienced staggering economic growth, has an insatiable demand for natural resources and, most alarming, wields an enormous population that desperately seeks to emulate the western lifestyle of over-consumption. This is an unfortunate combination for a world community running low on many vital natural resources and with no firm contingency plans.

Despite the economic slowdown, China still leads in the world’s fastest-growing automobile market. In 2008 the country produced an astonishing 14,000 new cars - per day.

Now another up-and-coming global power, India, is making news in the global automobile market. The country boasts the second fastest-growing automobile market in the world, and has been aggressively promoting car ownership among its citizens, seeking to quadruple automotive sales by 2016.

The primary obstacle to getting cars onto Indian roads has been price, especially for India’s poorer population. Last week this obstacle was all but demolished when Indian automaker, Tata Motors, announced plans to begin mass production of the Tata Nano. According to the Guinness Book of Records, the Nano is the world’s least expensive car retailing for an astonishing low base price of $2000 USD. That’s right, the Nano will sell for less than the cost of many extras on American vehicles.

Tata Motors made headlines in 2008 when it publicly acquired the luxury Jaguar and Land Rover brands from Ford Motor Company. The buy-out smacked of irony, considering Britain’s formidable colonization of India in centuries past. The world is, indeed, getting flatter with each passing year.

While price breakthroughs may be good for India, they are far from good news for western nations. Why? Because now many of India’s 1.1 billion citizens will soon be able to purchase their first automobile. This means demand for the world’s shrinking oil supply will increase exponentially as the Tata Nano, and similar vehicles certain to come along in the future, begin filling the streets of this emerging nation.

To say that western expectations of energy supplies have been unrealistic and, quite frankly, irresponsible would be an understatement. Apparently it will take severe constraints of energy supplies in the west before decisive action is taken. And then it might be too late.