The next big hump coming soon

Tata’s Nano couldn’t have timed it better. According to a report on oil prices, it is time to think small, especially when it comes to cars.

The new report from the McKinsey Global Institute, called Averting the Next Energy Crisis: The Demand Shock, that considers a global economic recovery in2010, warns of another oil-price shock between 2010 and 2013. Prices will rise above $100 a barrel.

The energy demand that has stagnated during the recession will pick up and while the supplies of coal and gas ‘appear to be plentiful enough’ to prevent long-term price inflation, McKinsey expects demand for oil to outpace supply.

Energy demand, it says, will grow by 2.3% per annum from 2010 to 2020 even if, as expected, energy consumption in the U.S. and Japan remains virtually flat. Especially in developing markets, where carbon dioxide emissions will also grow by 2 percent mostly thanks to the growth in air transport, steel and petrochemicals. Much of this will be from China and India.

Among the suggestions it makes are, removal of subsidies that keep oil prices low in places like Saudi Arabia, Iran and Venezuela; improving efficiency of cars and trucks, more flexi-fuel cars, etc.

Nano could be your answer?? Or better still, a truly effective public transport system?