Valuable lessons from the last oil shock

Forty years ago, the world experienced an oil crisis, when the Organization of Arab Petroleum Exporting Countries decided to impose an oil embargo. The price of oil quadrupled within a matter of weeks, and consumers, manufacturers and entire countries had to change their habits of consuming fossil fuel. Seventy-five percent of the current population of the Philippines was born after that year; so many do not remember any period before the oil shock.

But you probably remember when gasoline was in the single digits per liter. You can also recall when it breached P60 per liter. Gasoline was worth P10 per liter in the late 1990s; the price peak was just four years ago. Now hovering at around P52 per liter, small oil shocks are upon us every week or so, when oil companies increase their prices in seemingly small increments. Those small increases add up to a lot of pain in the wallet.

A major oil shock is not out of the question, with a still unstable Middle East, and increasing energy demand from developing countries  and rich countries alike. What could be in store when a second oil shock arrives, and what can we do about it?

Think small

Take a look at any book on cars through the decades and the delineation is very clear. Before: Large and heavy land yachts dominated in Europe and America. After: Small and light became the favored form of transportation. Where Cadillacs and massive Chevrolets used to roam, previously ignored Japanese nameplates like the Toyota Corolla and Corona, Honda Accord, and the Datsun 510 suddenly gained favor. The Volkswagen Beetle became the world’s best-selling car.

Cars that used to be the epitome of small and light are now heavier and perhaps not as efficient as they could be. The increased comfort and convenience may be worth it, but a new oil shock will once again favor small cars. Thankfully, there’s no shortage of small cars taking up the bottom rung of the ladder. While the Toyota Corolla moves up in plushness and size, there’s a Vios or Aygo ready to take its place. Be ready to shift to the smallest, lightest vehicle that fits your needs.

Think safe

When small cars became the norm, carmakers who joined the fray did so at the expense of safety. The Ford Pinto and Chevrolet Corvair are infamous for being “unsafe at any speed.” This is no longer likely, as small cars developed for Europe and America are held to the same stringent safety standards as bigger vehicles. A well-designed small car can protect its occupant just as well as a larger car. The Honda Civic recently aced one of the toughest tests around, the severe small-overlap front crash test.

However, cars that are not sold in Europe and America, and even supposedly identical models assembled elsewhere, may not be built to the same high standard. Until the Asean, China and other markets step up their testing regulations to protect motorists and pedestrians, research the safety aspect of the cars you will be buying.

Be prepared to sacrifice

Safety should not be compromised, but some convenience can be deleted. Motorized seats, sunroofs, onboard entertainment systems: All of these add weight and consume power. Remove them, and see fuel mileage improve. They may even add some of the pleasure back via unfiltered driving. As for entertainment systems, the best one is a good conversation with your passengers.

Technology can save the day

Carmakers continue to squeeze more kilometers per liter out of the internal-combustion engine. A new wave of diesel and gasoline engines, run by cheaper and more powerful computers, can improve efficiency as well as power output. Look for innovative technology in your next vehicle, whether it’s Ford’s high-torque diesel,   or Mazda’s regenerative braking and energy capture. Electrics like the Tesla S and hybrids like Toyota Prius and Honda CR-Z are looking like promising alternatives, if their prices become more competitive.

Alter your habits

Do you really have to drive everywhere? Even in these days of always-on communications and video calls, a face-to-face meeting is still the best way to get many things done. But for everything else, perhaps the phone or video screen is the more efficient alternative. Avoiding traffic will mean traveling during off-peak times (for Edsa, that would be at around 2-5 a.m.), and you may have to consider riding the train or carpooling.