BP: World more likely to switch away from rather than run out of oil

Joseph Lazzaro — Fri, 18 Jan 2008 18:02:00 EST

Filed under: Forecasts, BP p.l.c. ADS (BP), Oil

On the heels of Cambridge Energy Research Associates study arguing that new oil finds are replacing declining production at existing oil fields, a BP economist said the world is more likely to switch away from oil as opposed to running out of the commodity in the decades ahead, Reuters reported.

BP plc (ADR) (NYSE: BP) Special Economic Advisor Peter Davies also told ministers from Britain's Parliament that world oil production is likely to peak -- but not due to any "peak oil" scenario involving declining recoverable supplies and/or declining production -- but rather due to declining demand, Reuters reported.

"I think we will run out of demand before we run out of supply," Davies said, Reuters reported. "There's a distinct possibility that global oil consumption could peak as a result of climate policies."

Continue reading BP: World more likely to switch away from rather than run out of oil

BP: World more likely to switch away from rather than run out of oil originally appeared on BloggingStocks on Fri, 18 Jan 2008 18:02:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Laundry detergent concentrate: Manufacturers, retailers get all the benefits

Zac Bissonnette — Tue, 22 May 2007 14:41:00 EST

Filed under: Consumer Experience, Wal-Mart (WMT), Marketing and Advertising, Procter and Gamble (PG), Unilever ADR (UL)

Laundry detergent manufacturers have done it again; doubling the potency of detergent while cutting the bottle size in half. The Wall Street Journal talks about the marketing challenge that Procter & Gamble Co. (NYSE: PG), Unilever (NYSE: UL) and their competitors are about to face. The impetus for this move is not a greener earth or a more useful product, but instead, pressure from retailers like Wal-Mart Stores Inc. (NYSE: WMT) to squeeze more product into the same shelf space. You will be able to do just as many loads with half as much detergent, and the price will be the same per bottle. The problem is getting people to realize that and, more importantly, convince them that they aren't somehow getting ripped off.

As the Journal says, "Retailers are pushing the big shrink in detergent bottles because when their shelves are full with smaller bottles, they lose fewer sales to products being out of stock and less employee time is spent replenishing product. Retailers also save on transportation costs because more of the smaller bottles can fit on a truck. Meanwhile, manufacturers, which over the past two years have been hit hard by high oil prices, save on the petroleum-based plastic packaging as well as the costs of shipping to retailers."

Wal-Mart CEO Lee Scott's strategy of promoting the products as green-friendly makes sense, given how in vogue that is right now -- less plastic, less transportation -- it actually is environmentally friendly. But there's still the emotional, less rational problem: How do you convince someone to pay the same amount for 50 ounces as they used to pay for 100? And what's more, why do the retailers and manufacturers get all the benefits?

Continue reading Laundry detergent concentrate: Manufacturers, retailers get all the benefits

Laundry detergent concentrate: Manufacturers, retailers get all the benefits originally appeared on BloggingStocks on Tue, 22 May 2007 14:41:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments