Thursday, September 10, 2009

Intelligent Business and Carbon Footprint Reduction

For me, it's not about the politics, or even really about climate change. It's about the fundamental economics. Non-renewable energy sources are a scarce resource subject to the basic laws of supply and demand. The more reliant a business is on a scarce resource, the more risk to the business when price fluctuations hit. The price of oil was really putting the hurt on businesses when the recession hit. The recession then caused a drop in demand which dropped the price of oil back to more 'acceptable' levels.  It also caused a drop in supply as production decreased. When the recovery revs up to full strength, we're going to see the price of oil spike again and businesses that didn't take the steps to mitigate that risk are going to have a tough time surviving 'Round Two'.

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