No Hot Air

A far, far Better Place

Apart from the obvious fact that we live on the same planet as 6.7 billion and counting other humans, NHO doesn't classify ourselves as being particularly environmental one way or the other. Whatever the environment hands us, we think life is too short to obsess over the little details surrounding the future of the planet. We just want it to happen, and in the meantime we've got to pay the gas and electric bill. We want to do so in a faster, better and cheaper way, that being our little contribution to the environment: we don't obsess about inconsequential BS. But we also say that while little things don't mean very much, a lot of little things mean a whole bunch.

Since we're business oriented we don't have much time to concentrate on fuel for vehicles. But when we do, it's about the coming revolution in electric vehicles. As usual, conventional wisdom is usually wrong, and if people consider what we might call baseload vehicle use, they won't obsess so much about peak load.

The average UK journey length is less than 7 miles per day. Which means electric cars would be perfect for most of us. Not all, most. But drivers sometimes want to go to the beach,or that big shopping mall or grandma's house or drive to Spain. For that,they like to have big and comfortable beasts. 

There are a number of mainstream electric vehicles (EV) coming into view, especially the Chevy Volt allegedly late this or early next year. But we love original thinking and Better Place's backstory is fascinating. Who wants to charge up every 150 miles or so? The answer: don't reinvent the car. People are used to cars.They like cars.They are already sold on cars. But if you re-invent the battery and how it is charged, then you're on to something.

The Better Place automated battery switch replaces a depleted EV battery with a fully charged one in just a few minutes, allowing consumers to drive their EVs on long distance trips without actually recharging en route. The process is quicker, cleaner and easier than filling a gas tank, and doesn’t require the driver to leave the vehicle.

Ciao!

We've been glad to notice a surge of page views recently, probably connected to our redesign which makes us easier to find even if you're not looking for us.

As Al Jolson said at the end of the first talkie:  You ain't see nothing yet.  In September we'll be back refreshed and ready to make some serious noise.

But until then, we need to lie down.  Somewhere warm.  And dry.  Somewhere with smart meters everywhere.   Paradise!

Ciao!

Hit the Rails Jack

A basic principle of ours:  High Prices impact consumer behaviour, contradicting the commonly held view, in both energy markets and among some consumers, that energy consumers are somehow immune to price signals, and will keep on paying because they have no choice.

From almost day one on this blog, we’ve been pointing out how demand destruction is occurring in ways and places where energy conservation was once never thought  possible.  A little demand destruction here and there won’t impact market fundamentals, but in aggregate little things mean a lot.

Latest heretofore impossible news on consumer shifts, comes from LA, where commuters are hitting the rails.  That bears repeating:  The shift in behavior extends beyond Southern California. Americans drove 1.4 billion fewer highway miles in April compared with the same month last year, and 400 million fewer miles than they did in March, U.S. Transportation Secretary Mary E. Peters announced this week. Peters also said that gas-guzzling sport utility vehicles are decreasing in popularity, as sales of mid-size sport utility vehicles were down 38% year-over-year in May.

At 19.5 US gallons of gasoline from a barrel of oil, that should mean a drop of 35,000 barrels per day at 20 mpg for April  alone, or 135,000 barrels per day year on year.  Who says energy prices can’t influence behaviour?  That news will give oil traders kittens.  Eventually.

No Tell Motels

Since every business uses energy, we've gotten to know a lot about a lot of businesses over the years and one of our favourites has been the hotel industry.

A hotel industry singularity is being at once a major energy user while providing generous free energy to guests. As a result, the industry has a long history of using green nudges on guests to reduce their own costs. Apart from the old hang up your towels to save the earth plea, hotels have been at the forefront of demand suppression via access controlled lighting and air conditioning monitoring technologies for example. They did this even when energy was cheap - however cheap it was, they knew each penny or cent’s worth of energy out the window also evaporated from the bottom line.

This story, based on a Deloitte Hospitality Study tells of how hotels now have to manage energy to please their guests. An interesting convergence of interests - both working to the same end.